Not only is a diamond a thing of beauty, but it’s also a geological marvel. A natural diamond is made up of just one element — carbon, which is hard to believe when you look at its mesmerizing sparkle.
But the shape and twinkle of a diamond form under tremendous amounts of pressure, over hundreds of years underground. What’s more, no two diamonds are the same in terms of weight, color, and purity. Hence the individual price tags, no matter how similar they may look.
So, how much is a diamond worth these days? This blog outlines it all.
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How Much Is a Diamond Worth? Understanding the Four C’s
You may have heard the terms ”cut”, ”carat”, and ”clarity” when referring to diamonds. But what do these terms really mean? In today’s day and age, they determine the worth of a diamond. In fact, there are four important c’s to keep in mind. Let’s take a closer look at each of them:
1. Carat
When diamond experts talk about the carat of a diamond what they really mean is its weight. A carat is the unit of measurement used to weigh a diamond, equivalent to 200 milligrams.
For every carat a diamond weighs, it earns 100 points. For example, a one-gram diamond is worth five carats
2. Color
In the natural world, there are both colored and colorless diamonds found underground. Colorless diamonds that occur in nature (and aren’t manmade) carry the greatest value.
Today, you can find colored diamonds ranging from yellow, pink, blue, and black. Despite these diamonds being far less common than clear diamonds, they’re not as valuable. This is because nothing sparkles more brilliantly than a clear diamond. When a diamond has color through it, it has far less shine and impact.
Colorless diamonds rank on a grading scale from D to Z. The closer to D, the less color, while the closer to Z, the more noticeable coloring a diamond has. The more color a gem has, the more valuable it becomes. Check out this gem guide on that for more.
3. Clarity
The clarity of a diamond relates to its flaws. It’s these flaws found on the interior of a diamond that either block or bend the light that passes through the stone. In short, they’re called inclusions. The more inclusions a diamond has, the lower the clarity and the value.
Inclusions also determine how rare a diamond is. It is notoriously difficult to find diamonds without inclusions, hence why they’re so valuable when they are flawless. The heavier the stone, or greater the carat rating, the more significant the clarity grade ranks.
4. Cut
There are a plethora of ways to cut and shape a diamond. All of which aim to create the greatest number of facets that reflect as much light as possible. And the sparklier a diamond, the more enticing and valuable it is.
Popular diamond cuts include square, round, princess, and rectangular. The quality of light that shines through a diamond depends on its cut, too. Diamond cut quality ranges on a simple scale from poor to excellent.
If a diamond has an excellent cut it will shine or refract light directly into the viewer’s eyes. The poorer the cut, the more dull the sparkle.
The Low Down on Diamond Pricing
Now that you know a little more about the all-important four c’s, let’s discuss diamond pricing and the Rapaport Price List. Today, it’s known less formally as ”The List” by diamond jewelers and experts the world over.
This list is basically a benchmark for diamonds according to the four c’s. The List serves as a baseline for the pricing of loose diamonds when sold individually.
The Diamond IDEX
There’s is a modern-day alternative to the Rapaport. The IDEX Diamond Price Report is geared towards the B2B diamond exchange industry. Today it’s a very popular option for ranking diamond pricing due to its transparent methodology.
The IDEX has garnered the support of some of the world’s largest diamond dealers, although it’s still not as widely used by the broader diamond pricing market.
What To Keep In Mind When Buying Diamonds
If you’re looking to get the best bang for your buck when buying diamonds there are a few considerations to keep top of mind when it comes to pricing:
- Always ensure that diamond prices are per carat
- As a general rule of thumb: if a diamond price seems too good to be true, it generally is
- Make sure to consider the color and clarity combination next to the size (carat) of the diamond
- Some retailers may give you a ”tip” that 0.99 carat is cheaper than 1.00 carat. This is not always true as retailers adjust prices accordingly
- You’ll always pay more for a round cut diamond due to its shine and brilliance
- Always ask for an authentication certificate — known as the fifth important ”C”
The type of diamond you end up choosing also comes down to personal choice. There are plenty of other cuts that offer amazing sparkle and shine, but it comes down to what you prefer and can afford, of course.
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So, how much is a diamond worth? This is a loaded question with plenty to consider. No two diamonds are ever the same and there are myriad factors that influence diamond prices. Having the necessary knowledge on what to look for when diamond shopping is all you need to ensure you get the best deal.
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