What determines the prices of diamonds?

Everyone knows that diamonds are expensive, but especially assessing the proper value of a diamond is difficult. The price of diamonds is expressed in US dollar per carat. A 0.50 carat diamond for example, has a price of $ 1400 * 0.50 Ct, so that equals $ 700.

Influence of the economy

The price of a diamond is determined by the global economy. Obviously, the price is influenced by supply and demand. In countries like China, India, Brazil and the Middle East in general, the demand for diamonds has increased exponentially over the last year. This is why the price of diamonds went up, while the supply remained stable.

Influence of weight

The price of diamonds per carat increases at a higher weight class. A brilliant of 3 carat costs five times more as a 1 carat. Diamond prices rise exponentially as the weight and the higher price per carat increase. A diamond of 0.99 carat is only 1% more valuable than a comparable diamond of 0.98 carat. However, the value of a diamond of 1 carat is approximately 20% higher than a comparable diamond of 0.99 carat. These prices apply to perfectly cut diamonds. A small difference in weight can significantly affect the value of diamonds.

Influence of diamond cut

Because of the 20% price increase, it is understandable that a diamond cutter will do everything to achieve this weight of 1 carat. A diamond may therefore seem very cheap, but if the diamond is poorly cut, you still pay too much. An ideal cut brilliant of 1 carat has a diameter of 6.5 mm, but can also have one of 6.00 mm. If you choose the one with 6.00 mm, this diamond will not have the right diameter and thus will not shine optimal. A brilliant with a diameter of 6.00 mm can’t weigh more than 0.80 carat. Regardless of the lower weight, this brilliant belongs to cheaper weight category. The price of the diamond will be lower and it will shine like a 1 carat brilliant.

Because of direct purchase and sale, without intermediaries, BAUNAT DIAMONDS has the best price/quality ratio for diamonds. If you consider investing in diamonds and you want an expert’s advice on diamond prices, BAUNAT DIAMONDS will assist you.

Author: San Meuleman

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