There are basically three reasons to re-cut a diamond:

• To improve a diamonds cut rating during the initial production process.
• To remove a chip or other imperfection which is the result of damage.
• To recover the value from a diamond that is cut in a shape that is obsolete or which is no longer marketable in its current form.

Improving a diamonds cut rating benefits everybody involved because it produces a more brilliant diamond. The process is equivalent to a craftsman putting the finishing touches on his creation... Therefore, it is nothing to be concerned about. In fact, most diamonds that fall within Tolkowsky's recommendations for ideal proportions have been re-cut to meet those standards.

Damaged diamonds and those with obsolete shapes that are re-cut to make them salable again, however, are an entirely different story. These diamonds are no different than salvage vehicles purchased from an auto wrecker that are fixed up and sold to unsuspecting consumers. In fact, the only difference between these types of re-cut diamonds and salvage vehicles is that the purchaser of a salvage vehicle is more likely to know its history because of the DMV registration. Diamonds don't have registration numbers that tell their secrets, but experienced graders can recognize their characteristics.

When a diamond is chipped, it's value depreciates significantly. The best way to recover its value is to re-cut it and retain as much of it's original weight as possible. The same holds true for a diamond that has a shape that is no longer appealing to the buying public, such as Old European or Mine Cut diamonds. Unfortunately, re-cutting these types of diamonds usually results in stones with irregular shapes, very poor proportions, and poor symmetry.