| Diamonds are popular for jewelry such as | | | | that is equivalent to slightly more than seven |
| diamond rings, eternity rings and necklaces, but | | | | thousandths (0.007) of one ounce. Diamond |
| many people are unaware of the factors that | | | | weights are measured with the accuracy of a |
| contribute to the wide price range that diamonds | | | | thousandth of a carat but are given a weight that |
| fall into. The price of a diamond is derived from | | | | is rounded to the nearest hundredth. Diamonds |
| an evaluation of its color, cut, clarity and carat | | | | weighing over one carat are designated as a |
| weight. The less color that is visible in a diamond, | | | | decimal number up to the hundredths, such as |
| the more valuable it is deemed to be. Some | | | | "1.23 carats." Such a weight would be expressed |
| people perceive diamonds to be colorless, | | | | as "one carat and twenty three points." A |
| however many diamonds appear to have a | | | | diamond weighing less than one carat is also |
| normal brownish or yellow tint. A diamond's cut, | | | | represented as a decimal, such as 0.72, in which |
| which is a significant factor in a diamond's brilliance, | | | | case it would be said to weigh "seventy two |
| is related not just to the shape of the diamond, | | | | points." |
| but its polish and proportions as well as | | | | Though a diamond's value is determined by its |
| symmetry. Clarity is a relative measure of a | | | | weight in carats, a two carat diamond would cost |
| diamond's blemishes and internal characteristics | | | | more than two times the amount that an |
| (inclusions), where a diamond with less irregularities | | | | equivalent one carat diamond would cost. |
| and inclusions will exhibit more brilliance, thus | | | | Diamonds with adequate quality to be used in |
| affecting a higher purchase price. Carat weight | | | | jewelry are rare finds, with larger diamonds being |
| refers to the actual weight of a diamond, | | | | even less commonly discovered than smaller ones. |
| measured in carats, which is abbreviated "ct." | | | | As economics demonstrates, the more limited the |
| While each of the above factors contributes to | | | | supply a valuable product, the higher cost it will |
| the determined value of a diamond, here we | | | | claim. As such, there is no defined measurable |
| examine what is meant by the fourth factor in | | | | rate representing a diamond's cost per carat. |
| determining a diamond's value, carat weight. | | | | Rather, larger diamonds fetch an exponentially |
| The carat weight is simply how much a diamond | | | | higher price per carat than the more common |
| weighs, but it must be measured in an industry | | | | smaller ones. |
| specific way. A carat is a metric measurement | | | | |