The diamond price is determined by accessing its carat weight, color, cut, and clarity level, these four features are generally regarded to as the 4 C’s and with such a wide range of combine possibilities, it is not a big deal that the prices of a diamond could fluctuate immensely. However, this article aims to provide clarification concerning the impact of each of the 4C’s elements on the cost of the diamond.

Nonetheless, the value of a diamond is set by its appeal, thereby trying to regulate the industry as well as create a good standard for diamond comparison, and a methodology of diamond grading has been set by the GIA known as the 4C’s of diamonds.

The 4C’s represent the Color, Cut, Clarity, and Carat, as mentioned earlier. The real sense, it is more complicated than that. As stone dealers, we look at many factors, but this grading system does the trick in providing valuable estimates for the value of the precious stone by enabling us and you to compare similar diamonds.

Nevertheless, the main thing missing out in a chart that states how much does a stone cost and how much is it worth?

We will dwell on the price of the stone chart below and also explain how to utilize it and, more importantly, what the flaws of the table are. But as a matter of fact, it is essential to share with you the bottom line recommendations on what to purchase:

Factors Influencing Diamond Prices

The first and presumably most clear factor in deciding a precious stone’s value is its carat esteem. Typically, individuals would promptly get a handle on the relationship between a precious stone’s size and its importance, realizing that “the greater – the better.”

In all actuality, the relationship is considerably more fragile than that. It isn’t merely the weight which assumes a significant job in affecting its estimation, but instead the more vital factor of whether the influence is a “full carat unit,” for example, a numerically round figure. It is an undeniable fact that costs drastically take off for jewels that have a full carat weight instead of an unrounded value. For instance, an unrounded 1.49 carat precious stone could cost around $10,500, while a total 1.50-carat jewel of the equivalent precise quality would be relied upon to cost approximately $14,600. In this way, a full carat jewel is substantially more significant as far as cost per carat than a precious stone that isn’t.

The second factor that decides a precious stone’s value is its color. Setting aside colored fancy precious stones that are substantially more costly, white jewels are evaluated by their yellowish color show. The precious stones are reviewed on a diagram from “D” to “Z,” and in like manner subdivided into six distinctive scale groups.

For instance, the color “D” which has a place with the scale group of “colorless” which is the most sought for after coloring for a jewel while at the opposite finish of the diagram the color “Z” has a place with the light yellow scale group, which is the most substandard as far as color. Accordingly, there is a sharp variety of costs between precious stones of various hues, explicitly between those that additionally have a place with an alternate scale subgroup in and out.

To exhibit this point further, we can look at two jewels of identical qualities that vary just in coloring – one is evaluated as “K,” though the other was reviewed as “H.”

Although there are just three units of detachment between a “K” and an “H,” the way these jewels have a place with two altogether various scales (the first to the “blackout yellow” and the last to “close to dreary”) implies that the distinction in cost between them could be significant and reach around $1,700 per carat.

The third “C” that impacts how a precious stone is valued is its clarity. The clarity scale measures the seriousness of the precious stone’s regular flaws, generally, refer to as considerations or imperfections.

Gem dealers utilize the clarity chart that comprises of five diverse scale classifications (from “Immaculate” to “Defective”) to decide the clarity of a jewel. The better the clarity evaluation of precious stone is, the higher the cost will get. For instance, if we somehow happened to contrast a precious stone that has a place with a specific clarity scale to a jewel that has a position with the following level, the distinction in cost could without much of a stretch reach $1000 per carat.

The last factor that impacts the value of a precious stone is the cut. It is additionally the most intentionally dismissed feature by diamond sales rep when the person in question endeavors to make a deal.

This means, the sales rep will regularly divert the consideration away from the precious stone’s inappropriate proportions and emphasizes that it is a “deal,” instead of clarifying why. The reality of the situation is that a jewel’s cut, as well as the proportion, assume a vital role in deciding its general look and cost. For the most part, perfect cuts are viewed as considerably more costly than their partners.

Just as each precious stone is unique on its own, so it’s pricing. Even rocks with the same carat size could also be divided into a range of different prices depending on the influence of their other qualities, as discussed. Each one of this 4 C’s addresses the quality and prices of a diamond in different ways, but the critical point are to understand the inter-dependency of these four factors.

Get the best diamond value for the least amount of money

It is not possible to ascertain that you can buy diamonds of the same quality for 50% less, it is merely impossible although there is a way you can save up to 20%, which will be revealed at the very end of this article.  When a professional is evaluating a diamond, they look at many attributes.

Here are tips for individuals looking for a 1-carat diamond, a 2 carat or half a carat:

Go Below Weight Classes

If you are in search of a one-carat diamond, check 0.95 ct, and if you in search of 2.0 carat, then consider 1.90 carat. The same also goes for fracture.  If you are in search of half a carat, then you are to find 0.45 carat, etc.

Since the weight of a diamond is one of the easiest ways to reduce costs, an entire section has been dedicated to explaining the price per carat system towards the end of this article.

However, diamonds are priced per carat, and the price per carat tends to increase as the weight goes up, which means a double increase.

The result as a good quality 1-carat diamond will cost 6,000 dollars the same diamond of the same quality weighing 0.90-0.95 carat will cost about 4,000 dollars, which is a 33% discount.

Search 0.9-carat Diamonds Search 1-carat Diamonds.

Diamond Color

The color of diamonds is referred to how colorless the diamond is. The ideal color is D color, the highest grading, while the Z is the lowest. Moreover, colors I and below you had already started seeing yellowish tint unless you have the vision it will be challenging to identify the D color from an F diamond color or even the G color diamond.

Diamond Clarity

Diamonds clarity refers to the inclusions within them. There are different types of compositions from black points to fractures. The grading tells us how prominent and visible these inclusions are.

Your main target should be getting diamonds with such inclusions that are not visible to an ordinary eye; unless a magnifying loupe is used, you won’t be able to identify them. This means you are aiming to an SI1 clarity diamond while the savings compared to a Flawless diamond is 50 percent.

Diamond Shapes

It is no doubt that round diamonds are far more costly than other shapes of diamonds such as cushion cut, oval, and also princess cut. In other words, you will find two examples of GIA diamonds 1 carat with G color as well as VS2 clarity. One is round, costs 6,300 dollars, and the other is a cushion-cut cost 3,500 dollars.

Diamond-Cut – Never Settle

You are not to save in this case because it is the only place where you are expected to make the extra effort and pay for an excellent diamond cut. A 1 carat round D flawless diamond cost 12,500 – 15,000 dollars.

While a 1 carat round diamond like a G color, SI1 clarity, and excellent cut would cost 6,000 dollars, also a cushion-cut cost for 3,500 dollars easy savings.

Diamond Prices

You will find below a list of actual diamond prices. These prices are diamonds with the highest value, diamonds that are: Excellent Cut, Excellent Symmetry, Very Good / Excellent Polish and No Fluorescence.

These attributes were chosen simply because it is the only way to compare diamond prices truly, and in today’s market, you may not want to waive these qualities.

With that in mind, a reduction can always be made in the price by waiving a few of the attributes; the most straightforward and least affection on the appearance that does affect the price is the fluorescence. Also, going to a faint to a medium fluorescence will reduce the cost by 5-15 percent and at the same time, may cause the diamond color to appear whiter, which is a positive side effect of the fluorescence.

You should also have in mind that these are prices of loose diamonds. The cost of the stone will set you backward by another 300-2,000 dollars depending on whether you require the classic solitaire or a more expensive mount like a double halo and if you wish to go with gold or platinum or even double if you want to buy a designer ring.

Carat Diamond Prices

One carat precious stone is as classic as it may look when it comes to engagement rings. Because the average engagement ring for the past few years is just below 6,000 dollars, then 1 carat diamonds are probably as high as you can go.

A 1 carat diamond for 6,000 dollars with G color as well as SI1 clarity is then recommended for the best money value for diamond. It gives an excellent white diamond color that will correlate with both white gold, yellow gold, and is as good as the eye can identify.

The alternative that is affordable to a 1-carat diamond would then be running a more comprehensive search of diamonds weighing 0.90-0.99 carat that are still cut very well to excellent but may include fluorescence.

This will also get you a similar looking diamond for approximately 4,350 dollars, and if you are searching for a yellow gold setting, you can drop to H color diamond at 4,000 dollars.

2 Carat Diamond Prices

With the economic depression in recent years and the reduction in demand for luxury goods, prices of diamonds have declined at least for a while, especially in such in more expensive diamonds.

At this point, the prices of 2-carat diamonds had then decreased drastically, in some cases 30 percent though still very expensive.

In order words, to make it look more comfortable, the price chart above is a total diamond price and not per carat. Since these are 2 carat precious stones and the price steps are a considerable price, it, therefore, recommended three options.

For 21,000 dollars, you get 2-carat diamond G SI1 also the best value for money. However, as a result of the differences, you may consider very well H SI1 or G SI2. Also, have it in mind that the SI2 diamond may not be “eye clean,” most notably in a 2-carat diamond, and this needs to be verified.

Furthermore, on the affordable side of 2 carat precious stones, dropping to 1.80-1.90 ct diamond and allowing the fluorescence may get you a G SI1 for 14,000-15,000 dollars.

I don’t have the idea, but if you’ve noticed 2-carat diamond costs more than three times than the equivalent 1-carat diamond. Buying a perfect weighing 1-carat diamond or a 2-carat diamond and buy slightly smaller carat diamonds like 0.90 carats or a 1.90 carat for an extra 10-20 percent discount

Diamond price per carat what does it mean?

The price per carat is the price of the diamond divided by its weight.

The simple explanation is that if you get a diamond that is priced 5,000 dollars per carat and it is half a carat, what you will need to do is 0.50 multiply by $5,000 gives you $2,500 for the diamond. And if the same diamond that costs 5,000 dollars per carat weighs 1.50 carat, then it means 1.50 multiply 5,000 dollars gives 7,500 dollars for the diamond.

Comparing prices of diamonds to diamonds

It might look quite confusing, or you may be wondering why precious stones are priced in this manner, but this is the same way fruits and vegetables are being rated.

This is important because all diamonds are not the same and, therefore, shouldn’t be priced the same way whereby price per carat method enables you to make your comparison between two different diamonds better.

Example – An individual walks into the store searching for an engagement ring to his future wife, He then identifies a beautiful classic solitaire ring with a diamond at the center weighing 1.10 carat having a D color and VS1 clarity for 10,200 dollars.

Later, as he strolls down the street, he noticed another store with the same ring only that the diamond at the center is 1.02 ct and they want 10,000 dollars.

If all other factors are to be the same, if we ignore the cost of the ring itself ordinarily shouldn’t cost more than 500 dollars, we will see that while the first stone is about 8% “bigger” it costs only 200 dollars more which is equivalent to 2%. This means that the more critical precious jewel is the better deal. He pays a little more then gets a lot more.

Weight of the stone Matters

It is of great importance to understand that prices increase of precious stones with their scarcity. The more scarce the diamond, the more expensive it becomes. A diamond with high color costs more than a diamond with deep intensity, not just because it is better to color but simply because they are tough to find. Some people go for large stones. It is by far challenging to find a gem-quality diamond that is weighing 2 carats than a similar stone weighing 1 carat.

As a result of this, the price per carat of a 2.00 carat precious stone is more significant than the price per carat of a 1 carat stone. Therefore, two 1 carat precious stones cost less than one 2 carat stone in fact – far less.

Reducing diamond prices using the price per carat system

It is essential you observe the following question – Would you prefer to buy a 1.00 carat stone or a 0.99-carat diamond for 1 percent less? Does the same problem go to a 2.00-carat diamond and a 1.99-carat diamond for 0.50 percent less?

However, most individuals would prefer to walk the extra mile or pay the extra 0.50%-1% to get around weight number stone or more correctly not to get the “just below” carat weight.

This is the reason why what we mentioned above about the scarcity of diamonds causes prices to go higher, while precious stones are priced per carat, the price per carat changes in weight steps or weight classes. As a result, the costs of rocks are not increased linearly but slightly exponentially – demand and supply. This means that the diamond price per carat of a 1 carat is higher than the diamond price per carat of a 0.99 carat. The increase in total cost is higher than 1% of the weight – much more.

Actual diamonds with Example

A 2 carat D VS1 diamond costs 40,000-42,000 dollars total, approximately 20,000 dollars per carat.

Moreover, a 1.90 carat D VS1 diamond costs 30,000 dollars – which is 15,800 dollars per carat – more than 20 percent less per carat and more than 10,000 dollars total!!!

And if you found yourself surprised, to find a 1.95-carat diamond will be difficult because the price difference is so vast that the diamond producers would prefer to settle on the cut quality than dropping from 2.00 carat to 1.95 – this “drop” will cost him 10,000 dollars. The diamond cutter’s goal is not the most brilliant and brightest diamond but the most valuable one.

Carat does not mean size

Massive diamonds are not necessarily bigger! Just have this in mind that settling for a diamond carat that is slightly less than initially intended a lighter diamond, does not mean that it is smaller.

Therefore, it is advisable, if you are on a budget, instead of settling for other factors of the 4 Cs such as diamond color, you can step a little below the weight class that you prefer in mind and save a lot of money. The weight steps which have an impact on the price per carat are 0.50 ct, 0.75 ct, 1.00 carat, 1.50 ct, 2.00 ct, 3.00 ct, 4.00 ct, 5.00 ct and so on.

The pros and cons of investing in diamonds 

Diamonds are a ladies best friend, but are they also an investor’s best friend as well? The factors to this question are immense, and getting one of them wrong means most likely a loss for the investor.

Precious stones are similar to Gold, Silver, Bitcoin as well as Forex investment. For investors, precious stones are a store of significant worth. Yet, this value can only be gotten back if another investor who is willing to pay at least the initial amount invested at the moment of sale.

Predicting the value of stones is not only about the 4Cs and Fluorescence. Forecasting the demand and supply dynamics of diamonds 5 to 10 years down the line is the stone also an investor’s task.

In this article, predictions about the diamond prices and also providing you with arguments on the pros and cons of diamonds prices.An excellent investment to see if this particular tree will grow in your investment garden.

Qualities and Opportunities of putting resources into precious stones

Power and Beauty:

Precious stones are an exciting result of Mother Nature, refined by craftsmen to make antiques of want. They are delightful.

Precious stones add excellence and capacity to the individuals who wear them. A few pieces of society use jewels as a method for self-esteem or to broadcast riches. This is one reason, treasures are sought after a grown-up toy. Gems are more down to earth to flaunt riches than different types of extravagance things.

Sentimental value:

Precious stones have a significant sentimental worth attached to them. They symbolize

Endowments from age to the following

Commitment

Weddings

Commemorations

Jewel Supply

Precious stones found its way into our cultural fabric and became synonymous with significant life events: marriages, engagements, anniversaries through marketing, and the primary suppliers of diamonds.

There is absolutely nothing wrong with some smart marketing firm engineering the long term position of their product. What is most famous for investors to achieve is the sustainability of these trends in the next decades.

Diamonds as an Asset or Investment:

Precious stones can be an obstacle against inflation, market crashes, as well as currency crashes. In times of economic recession, real asset prices tend to increase as investors lose faith in the financial system globally. Similar to gold, gems could be a form of insurance. Diamonds do not give a yield, and in such cases, this is to their great benefits. Other assets that do offer a high return will be priced down as their performance is less guaranteed in times of crisis.

Conclusion:

Are diamonds an advantageous investment?

Precious stones are a confounded investment; the threat is that at first, they may appear to be a straight forward one. Purchase the precious stone, hold it, and afterward sell it. An organization accounting report can be “played with” partially and jumble the genuine estimation of a firm to an amateur financial investor.

Precious stone’s worth is established in demand, supply, and the unwritten agreement from all the millions of individuals who own jewels not to sell them. These interlinked patterns should be untangled by any financial investor who is eager to understand the full range of dangers before putting resources into precious stones. In other words, diamonds are exceptional and cannot be overemphasized.