Material Quality: The finest Panama hats are made from the straw-like fibers of the toquilla palm plant. Look for tighter and more even weaving to identify a higher quality hat. The finer the weave, the higher the quality of the hat.

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Weave Grade: Panama hats are typically graded based on their weave tightness. There is no official grading system so grading can vary between craftspeople and designers. But generally, the tighter the weave the higher the grade. The most common grades are Regular, Fino (fine), Extrafino (superfine). Extrafino hats have the tightest and finest weave, making them the highest quality. Extrafino hats can sell for thousands of dollars. 

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Brim and Crown Shape: Choose a brim and crown shape that suits your unique style. The crown should be firm and will define the overall character of the hat. 

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Price and Value: High-quality Panama hats require skilled craftsmanship and time to produce. Be prepared to invest in a hat that will last for years and maintain its shape and style.

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Authenticity: Panama hats are traditionally made in Ecuador. Beware of hats claiming to be "Panama" but not made in Ecuador.