Determining a Diamond's Price

Want to know how to determine a diamond's price? Let's learn how an expert determine a diamonds price based on quality, grading factors and perception. Gemstone pricing is determined by the 4C's, namely, clarity, cut, color, and carat characteristics that are all wrapped up in a stone's grading report or certification. Let's touch upon a few of these points now.

4Cs of Diamond Price

A gemstone is graded based on the following factors in an effort to create a standard for quality:

Clarity & Color

Clarity and color have to do with the visual quality of the gemstone you are evaluating. Clarity is self apparent, it is a measure of the diamonds perfection. Generally, diamonds contain a number of small flaws or imperfections known as inclusions. Gemstone inclusions can often be seen with the naked eye, some cannot, and they generally look like small scratches or scuffs within the stone itself. The more inclusions a diamond contains the farther it is from perfect and the value decreases along with its price.

Color on the other hand has to do with naturally occurring color shades the stone may or may not contain. Pink diamonds, black diamonds, red shades, brown shades, all exist and have varying degrees of desirability. Pink diamonds for example are very rare to find in a small stone and are therefore priced accordingly. You will want to look for color to be uniform throughout the stone and a desirable shade.

Carat & Cut

Carat and cut refer to a diamonds size and the cut or shape of the stone that was created by the gemologist. Carat affects price based on rarity and desirability. Larger carat gemstones are rarer and therefore priced higher. The cut of a diamond on the other hand affects the brilliance of the stone, or its ability to capture and refract the light. A cut brings out the natural beauty of a diamond, and each cut shape has its advantages and disadvantages that can affect pricing and quality.

The 4C's of diamond pricing are all considered in your average stone grading report, but there is another factor that needs be considered. Never leave out, the perceived value of a diamond. What is the diamond worth to you, does the stone you are considering speak to you directly. Are you instinctively drawn to the particular diamond you are considering. Perfection aside, it is the emotional impact of your gemstone that you should never forget if you are going to buy the right diamond for you.