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Origin
A diamond fracture typically begins within the stone, sometimes extending its way to the surface of the stone. A chip, however, occurs on the exterior of the stone. Fractures, which are also called "feathers," originate during the forming of stone underground, usually as a result of the tremendous pressure that it takes to create a diamond. A chip, however, occurs after the diamond has been cut and can be caused by anything from shoddy cutting and setting to over-vigorous exertion and pressure on the stone (slamming your hand into a wall, or shutting your ring in a car door, etc.).
Fracture Filling
Fractures can be filled with a mixture of glass that will redirect the light and ensure that your stone shines properly; this process is called "fracture-filling." Some fracture-filled stones are so well done that the filling is only detectable with high magnification. Fracture filling can only be done at laboratories that specialize in this science, but a trusted jeweler or diamond vendor may be able to recommend one to you. Fracture fillings are not permanent; a study conducted in 1994 by the Gemological Institute of America showed that the majority of fracture fillings will wear away over time, especially when exposed for extended periods of time to harsh chemicals.
Chipped Diamond Repairs
Chipped diamonds can be re-cut and re-shaped to eliminate the chip from your stone. A truly skilled diamond cutter will be able to re-cut your diamond to eliminate a small chip and lose only a trace amount of weight from the stone. Ask a professional jeweler for her recommendation when looking for a diamond cutter to reshape your stone. The majority of chips are easily preventable with diamonds with forethought and common sense. Remove your diamond when engaging in any vigorous physical work or activities where your hands will be in contact with hard materials, such as washing dishes. Prevent diamond chipping by choosing a setting that properly protects your stone. Bezel and channel settings surround the stone entirely and minimize the likelihood of chipping, while marquis and pear-shaped diamonds would benefit from special prongs that cup and protect the fragile pointed tip of the stone.
Loss of Value
The loss of value will be less for a re-shaped chipped diamond than it will be for a fracture-filled diamond, as fracture-filling is regarded as a major cosmetic enhancement to the stone. If you have a fracture-filled diamond and are preparing to sell it, you must disclose that your stone has undergone treatment before placing it on the market. Chipped diamonds will see a dramatic loss in value if the re-cutting resulted in poor dimensions and a significant loss of carat weight. You are not required to disclose that the diamond has been re-cut, but you are required to list the updated weight and measurements on any documents that may be required for sale.