How Diamond Cost is Determined

If you are in the market to purchase a diamond you'll be learning all about the 4 C's of diamonds; cut, color, clarity and carats.  But in the mind of the average buyer, there is a fifth “c” that just may be the most important of all them: the diamond's cost.

The actual price of a diamond is determined by a grading system that takes into account the cut of the diamond, the color, the clarity and the number of carats.  There is a non profit organization called the Gemological Institute of America (GIA) that has devised the official grading system of diamonds, and because of that system, a diamond that is of more carats may cost less than a smaller diamond if the larger diamond has inferior cut, clarity or color ratings.  Cost is also determined, in large part, by the retailer, generally the markups on diamonds are quite high.

Buying Diamonds Online

The internet provides a wealth of information on diamonds, educating buyers on the value of diamonds based on size, shape and clarity, and luckily diamond cost is regulated by industry guidelines.  This means you can shop for your diamond gem stones online with as much confidence as you would shopping for jewelry at your local retailer, especially if you take the time to become knowledgeable about diamond costs before beginning your search for the perfect stone.

Guide to Diamond Cost

Every jeweler sets their own prices on their gem stones, rings, necklaces and other items.  When dealing with diamonds the shape of the diamond is also important.  A ”round brilliant” shape will tend to cost more than an ”emerald” shape even when they are the same quality and the same size.

If you have a minimal budget, such as $500 or less, you can expect to find a diamond with a carat weight between .15 and .25, set in a 10-14k gold.  If you're in the market for a diamond cost of $500 to $750, you can expect to be able to purchase one between .20 and .37 carats.  If you are looking for a 1 carat diamond, you should expect your diamond cost to range between $2000 and $3500. Diamonds International, for example, sells diamonds ranging from the inexpensive ones above to the awesome "O" diamond, with its 162 facets.

Get the Most Diamond for Your Money

When you are researching what to pay for youir diamonds, there are many more factors to consider than just the size of the diamond.  Remember that the shape (cut) of the diamond will greatly effect the diamond cost, as well as the clarity of the diamond.  You can get multiple, smaller diamonds for less cost than you can a single, larger diamond due to the rarity of mining a larger sized diamond. 

Sometimes a diamond will be beautiful to the naked eye, and have a reasonable price tag, but it may have a lower rating for quality or tone given by the GIA. When you are shopping for your diamond, you'll need to decide what is more important to you:  the diamond's price, the size of the diamond, the quality (the rating as given by the GIA), the diamond flaws, or how it looks when it's worn!

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