The “Dream” gemstone with which I am familiar is a brilliant cut squarish designed diamond lower and sold to jewelers. This stone is cut to such perfect proportions that a very sparkly and bright gemstone is the result. The stone also shows the “hearts and arrows” pattern often suggested as a sign of excellent cutting proportions. Is this the rock you have? A cathedral was pointed out by you establishing and flush established rock. Do the ring is meant by you has rising sides and the stone was set low into the mounting, perhaps close to the tops of the cathedral sides?
I expect this was still set into prongs and not a bezel. In my experience, when seen from above the very best of the stone straight, it makes no difference on a well cut gemstone if the stone is set high, low or in a bezel. You see, the light comes in from the top of the rock, not the relative sides or bottom.
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That ‘s the reason diamond jewelry are cut in the outstanding forms developed and customized today. One consideration is the amount of metal over the top of the gemstone. There should be sufficient prong or bezel to carry the stone securely and thick enough to ensure long wear. If the jeweler leaves too much metal over the stone, some top facets(windows) will be protected more and that could have an effect on the sparkle of light from the rock. Surface sparkle is another concern. The “reflections from the facets” is a kind of sparkle.
This is not the same as the light shown in the stone and back again out, offering the stone its brilliance. The top sparkle is more, well, sparkle and moving reflections as the gemstone is transferred in the light. I suspect with the rock from the environment you were seeing more surface sparkle plus some from the sides of the rock. When mounted low, this sparkle is much less seen or observed.
If this is the case, then by all means the stone should be had by you set a bit higher in a secure setting. Even if the difference is not noticed by anyone nevertheless, you, it is a difference to you and you are wearing the diamond still. So, have a bit was set by the stone higher with a more open setting. The light comes from the top of the stone, goes into and reflects off the side of the diamond (The Pavilion) and comes home out of lthe top (The Crown & Table).
The cause of the loss of ‘Sparkle’ is usually the trunk of the sone is dirty, oily, dusty or all the above which causes light to ‘Leak’ from the back. The complete reason diamonds look so good is due to their refractive index that bend light at specificanyles so when cut properly refract and reflect the light to the owners eyes. However, you are correct also, when the gemstone is set much of the light is unable and diverted to be seen.
The reason those old setting make the stone look good is the actual fact you could easily clean the back of the stone and keep it bright. You can demonstrate this to yourself by cleaning your ring and have a little dab of essential olive oil and touch the back of the stone, not the very best, and watch as your gemstone turns to glass or so it appears.