What Factors Determine Diamond Prices?

If you have been shopping for diamond jewelry,piece of diamond jewelry. Also included, of course,
you have probably noticed that jewelry such asis the complete cost from mining to market of
engagement rings, eternity rings, diamondmetals and other gemstones that make up a
necklaces and earrings are on the market for apiece of jewelry, as well as crafting of the piece
wide range of prices. In fact, the difference fromitself. Diamonds are appraised and valued
one diamond ring to the next can easily beindividually based on evaluation of the four
several thousand dollars. For most consumers,Cs-carat, cut, clarity and color.
price is an important factor in a buying decision,The price of a diamond is calculated based on
so it is important to understand what you aresome determined value per carat. That is to say
paying for when you purchase a brilliant piece ofthat the value of a 0.5 carat diamond which is
diamond jewelry.valued at $3,000 per carat would be calculated as
As with many consumer products, diamond prices$3,000Ã-0.5 = $1,500. However, despite the
paid by end users are affected by the value thatapparent simplicity of the (price per carat x carat
is added at each level of the supply chain.weight = diamond price) equation, several factors
Diamonds are mined from the earth in what caninfluence the determined per carat value of an
be expensive, elaborate mining operations,individual diamond. Evaluation of a diamond's color,
incurring an initial cost. Of course, diamonds do notclarity, and cut contribute to the determination of
emerge from the earth in the beautifully polishedits per carat value, with diamonds exhibiting the
cuts commonly seen at jewelry retailers. Aftermost attractive combination of features being
being mined, diamonds are typically cut andconsidered the most valuable and thus the most
polished before being sent to an independentcostly., the carat weight for an individual diamond
laboratory for grading. Then diamonds are placedis also affected by its rarity. Since a one carat
on the market for purchase by wholesalers ordiamond is much rarer than a half-carat diamond,
diamond dealers, who in turn sell them to variousa one carat diamond will incur a higher per carat
retailers. Finally, diamonds are in retail stores andweight than an otherwise equivalent half-carat
ready for purchase by consumers. Each stage ofdiamond. Though tempting, it is inaccurate to
the supply chain adds some kind of value andassume that you can simply plug the carat weight
incurs markup, each of which are reflected in theinto an equation to determine the value of a
end price a consumer will pay for a diamond.diamond. Each diamond must be individually
The cost to mine, prepare and market a diamondappraised in order for a value determination to be
is not the only determinant of the end price of amade.