Understanding Diamond Prices

Before you purchase a diamond, it is important to understand exactly how diamonds are priced. There are a number of factors that influence a diamond's price and once you are familiar with them, you will be able to get a general idea of what a "good price" for a certain diamond really is.

GIA Certification

In order to fully understand what a diamond is worth and what a reasonable wholesale price should be, you should make sure that the diamond comes with reliable certification from a reputable lab, such as GIA. The certificate will include vital information, such as shape, carat weight, color, clarity, proportions and more.

Market Demand

Certain diamond shapes are more expensive than others regardless of their color or carat weight. The same goes for colors. This can happen because some shapes are harder to create that others and some colors are rarer, but it can also be directly influenced by market demand. If a certain diamond shape is more popular, its demand will be higher and the price will rise.

The 4 Cs

Carat Weight

Diamonds are priced per carat weight. The price of a diamond is not proportionate to the weight, meaning that a 0.5 carat diamond will not be half the price of a 1 carat diamond. The price increases exponentially at certain weights, with jumps mostly at 0.5, 0.75, and 1 carats. Diamonds of different weights can have the same size and appear the same, so purchasing a diamond just under 1 carat can save a buyer a lot of money while still being suitable for the buyer's needs.

Cut and Shape

The cut of a diamond greatly influences how much light enters the diamond, meaning a well-cut diamond will be more brilliant and will have greater shine and, thus, a higher price. It is important to understand that the cut is not the shape, it is the quality of faceting done. However, the shape is also important as certain shapes are more expensive due to demand, like the round diamond.


The color of a diamond can greatly influence the price. This is not only due to market demand, but is also because certain colors are rarer than others.


The clarity scale of a diamond measures the severity of any imperfections. The better the clarity grade, the higher the diamond's price will be.

Online Tools

For new diamond buyers, there are many online tools, such as diamond price calculators, that can help you get a better idea of how a specific diamond should be priced. You can also look at the Rapaport Monthly Report for more information on diamond prices.

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