The internet has transformed the landscape of the diamond trade. Before the digital era, retailers imposed markups as high as 200%. However, with the ability to compare prices online, such markups have become obsolete. Online retailers, like James Allen, often have minimal markups and act as intermediaries between customers and dealers, eliminating the need to hold inventory.

Given that the markup for GIA certified diamonds online is only 10-25% of the wholesale price, the following prices in different criteria ranges can help buyers determine a fair value for a 1 carat diamond.

Criteria 1: Round Cut

• Budget Option: 1 Carat, SI1, Very Good Cut+, H Color+, Medium Blue Fluorescence+, GIA Graded, Average $3,000-4,500. Example: [Link to Example 1]

• Premium Option: 1 Carat, Super Ideal Cut, D-E Color, No Fluorescence, GIA/AGS Graded, Average $6,800-9,000. Example: [Link to Example 2]

Criteria 2: Fancy Shape

• Budget Option: Fancy shape (e.g., Oval Cut), 1 Carat, I Color+, SI1 Clarity+, Very Good Cut Proportions, GIA Certified, Medium Blue Fluorescence, Average $2,200-3,000. Example: [Link to Example 3]

• Premium Option: Fancy Shape (e.g., Pear Cut), 1 Carat, D Color, Flawless, GIA Graded, No Fluorescence, Average $4,500-7,800. Example: [Link to Example 4]

For additional insights, check the 1 carat diamond prices chart below or refer to our full diamond prices index.

In the section below, we have broken down four scenarios for how a buyer might buy a 1 carat diamond within a given budget range:

Top Quality 1 Carat Prices

Buyers in this category might opt for a 1 carat diamond in the “investment grade” category. To get the best deal, compare prices on multiple websites. Under this option, buying a super ideal cut diamond with a minimum of VVS clarity and E color with no fluorescence and GIA or AGS certification would be the best option. The budget for this range should be between $7,000 to $10,000.

Best Value 1 Carat Prices

This is also a premium category under which diamonds are often in high demand due to their high circulation. Buyers in this category should limit their options to VS2 clarity, G color, faint fluorescence, and ideal cuts with GIA or AGS grading reports. The budget for this range should be $4,000 to $7,000.

Best Size 1 Carat Prices

Under this category, the goal is to get the best one carat diamond for a tight budget. If that is the case, opting for an SI1 (and maybe eye-clean SI2) diamond with up to medium blue fluorescence and AGS and GIA certification is a great idea. We would still recommend an ideal cut in this range. The budget for this range should be $2,000 to $4,000.

Budget 1 Carat Prices

Under this option, buyers compromise on color because of a tight budget to get the budget cut, clarity, and carat weight. They consider a J to M range color with VVS clarity and ideal cut with IGI or any other reputable grading lab report. The budget range is $1,800 to $2,500.

The following diamond price chart shows very conservative wholesale and retail prices for a one carat diamond with no fluorescence, GIA or AGS certification, and ideal cut proportions.

To verify the authenticity and quality of a diamond, the safest and most dependable option is to request a diamond's certification before purchasing. The most respected grading reports come from the Gemological Institute of America (GIA). Diamonds can also be inscribed with a unique identification number, ensuring authenticity.

GIA, a non-profit organization founded in 1931 and based in Carlsbad, California, employs over 1,400 research professionals worldwide. Their certification process is thorough and impartial, ensuring unscrupulous sellers do not mislead consumers. GIA uses precise tools and master stones to evaluate the diamond's weight, cut, flaws, and overall brilliance.

While GIA is widely regarded as the gold standard, the American Gemological Society (AGS) is also a highly recommended and trusted grading lab.

When selecting a diamond, especially a 1 carat stone, it is essential to consider more than just the carat weight. The cut, clarity, and color all significantly affect the stone’s price and appearance. Understanding how each factor influences the diamond’s value will help you make a more informed decision.

Diamond Cut

The cut of a diamond should not be confused with its shape. While the shape refers to the diamond’s overall form—such as round, princess, or oval—the cut speaks to the quality of the craftsmanship used to transform the rough stone into a polished gem. Many consider the cut the most crucial factor in assessing a diamond's overall beauty and brilliance.

Expert jewelers carefully study the rough diamond to determine the optimal way to minimize waste while maximizing the stone’s potential. 

A well-executed cut enhances a diamond’s ability to reflect light, creating the sparkle and shine that diamonds are known for. Poorly cut stones, however, will appear dull and lack the vibrant reflection of light, making the cut one of the most significant determinants of a diamond's value.

Diamond Clarity

Diamonds, having formed under extreme conditions, often contain internal imperfections called inclusions. These can range from tiny shards of other minerals to subtle traces of elements. A diamond's clarity is judged by the visibility of these imperfections to the naked eye and under magnification using a 10x loupe or a microscope.

Clarity is rated on a scale, with flawless diamonds having no visible inclusions, and those with the most obvious imperfections rated as I3 according to the GIA scale. The fewer the inclusions, the more brilliant and valuable the diamond becomes.

Diamond Color

When it comes to diamond color, less is more. The most desirable diamonds are completely colorless, allowing for greater light reflection and brilliance. Colored diamonds often have yellow or brown tints and are typically less valuable.

It's important to note that setting a colorless diamond in gold can sometimes give it a slight yellowish hue, so be mindful of this when selecting a setting.

Diamond Carat

The carat weight of a diamond is one of the most well-known factors in its pricing. One carat is equivalent to 200 milligrams, but carat weight doesn't always correspond directly to size. For example, a 1 carat diamond may appear smaller than a 0.90 carat diamond depending on its cut, pavilion depth, and circumference.

A 1 carat diamond is often considered an ideal weight for a center stone, especially in engagement rings. Due to their rarity, diamonds at this size or larger tend to be more expensive. However, savvy shoppers can often find better deals by opting for slightly smaller stones—such as a 0.95 carat diamond—that appear nearly identical to the naked eye.

Some buyers also choose rings featuring clusters of smaller diamonds. While several smaller diamonds may collectively weigh the same as a single 1 carat diamond, they are often more affordable.

Related: How Much Does a 2 Carat Diamond Cost?

When on a budget, consider these insights on buying an ideal diamond without overspending:

Play around with color.
While a D color GIA certified diamond is highly desirable for its crystal-clear appearance, it comes with a premium price tag. Lowering color grade expectations can significantly reduce the cost, and an excellent cut diamond with a hint of color may offer surprising savings without compromising its overall beauty.

Don’t fear inclusions.
Inclusions, or flaws, in a diamond, do not always indicate inferior quality. Often, inclusions are barely visible, and two diamonds with the same clarity rating may have different types or quantities of inclusions. Scrutinize the diamond closely before ruling it out, and consider examining it under a microscope to ensure you’re getting good value.

Experiment with shapes.
The shape of the diamond has a substantial impact on its cost. Round diamonds are typically the most expensive, followed by oval cuts, as these shapes require more material to be removed during cutting, leading to higher costs. Consider alternative shapes like oval diamonds, which can cost up to 20% less than round diamonds of the same quality.

Lab-grown diamonds.
If budget is a primary concern, lab-grown diamonds can also be an option. While not a substitute for natural diamonds, they have the same physical and chemical properties as natural diamonds but come at a lower price, offering a more affordable alternative.

Choosing the right diamond requires careful consideration to avoid overspending or ending up with a less desirable stone. Balancing factors like shape, inclusions, and possibly lab-grown diamonds can help ensure a wise purchase.

In modern times, buying a one carat diamond ring represents a considerable financial investment. To make a well-informed decision, understand the key quality factors and carefully compare prices across reputable platforms before committing to a significant purchase.

The seven primary factors that affect a diamond's price include diamond shape, diamond carat weight, diamond cut, diamond color, diamond clarity, diamond certification, and diamond fluorescence. Please read our article on diamond price factors for more information.