Average Diamond Prices Index
- This price index for 1 carat, 1.5 carat, 2 carat, and 3 carat will be updated periodically to reflect the changing prices of diamonds in the industry.
- The second section of this article will explain how diamond prices are determined and calculated.
- The wholesale and retail prices indicated below are Petra Gems' best average estimates based on leading suppliers' and online retailers' prices available in the market place.
- The prices are for round brilliant cut diamonds. For tips on how to calculate the prices of fancy cut stones, see our suggestions and estimations below.
- The latest price estimates are from September 2019. It will be updated within 4-5 months if we notice significant price change in the diamond industry.
- Compare these prices with this site (site 1) and this site (site 2) in real time as they have the best diamond prices online.
- These are very conservative price averages by Sharif. If you get a deal below these prices, consider it a good price.
- For 3 carat +, especially 4+ carat, contact us so we can compare wholesale diamonds and retail prices in real time and provide you a more accurate estimate.
Average 1 Carat Price Index
Compare Online Prices Here.
Second Reference for Comparing Prices Online (Here)
Third Reference for Comparing Diamond Prices (Here)
Fancy Cut Diamonds Prices:
Round cut diamonds are generally pricier than other fancy cut diamonds because it takes a bigger/larger rough diamond to cut it into a round diamond than it does to cut it into a fancy cut diamond such a cushion cut diamond. Below are our best estimates for how much lower the prices of the fancy cut diamonds should be based off the above price indexes. Demand and supply of each diamond shape as well as surplus inventory in the marketplace also affect these prices.
- Oval cut diamonds - should be 5-15% lower than the above index prices.
- Princess cut diamonds - should be 17-26% lower than the index above prices.
- Cushion cut diamonds - should be 21-31% lower than the above index prices.
- Radiant cut diamonds - should be 18-27% lower than the above index prices.
- Emerald cut diamonds - should be 19-27% lower than the above index prices.
- Pear cut diamonds - should be 20-30% lower than the above index prices.
- Marquise cut diamonds - should 23-32% lower than the above index prices.
- Asscher cut diamonds - should be 21-31% lower than the above index prices.
Would you like to buy a diamond? An engagement ring, an earring, a necklace, or any other jewelry? Calculating the price of your favorite stone may have crossed your mind.
The prices of diamonds can vary astronomically even if the stones appear similar to the naked eye.
And if you’re like most diamond shoppers, you aim to maximize value while minimizing cost. You want a brilliant, big, and industry-certified diamond that gives you value for your money.
It's a jungle out there. And the diamond world is no different. Learn how to estimate the price of diamonds. It helps you not get ripped off.
So here is a question that brings everything into perspective:
What determines the price and the value of diamonds? They are one of the world’s most expensive product. But what makes a diamond so valuable? Who decides how much they cost?
Why do two diamonds with the same grade in the 4Cs have different prices?
Diamonds prices often seem mysterious. But why is it so? Is it because they are rare?
Knowing the answers to these questions sets you worlds apart from most buyers. You will be the Goldilocks of prices- just right, little under, or on the mark. But before you get into pricing and what is a fair deal, you have to know what you want and how to establish surety that you are getting your money’s worth.
And to help you make the best decision when purchasing a diamond, we are going to explore what determines the value of a diamond and how the different pricing mechanisms can affect the final cost of the diamond.
But here is the thing:
In determining the price of a stone, three significant aspects come into play:
A certification from a reputable lab is arguably the most crucial factor in determining the price. It was what tells the buyer that the piece is a genuine diamond- not a shard of glass or synthetic piece. With a certificate, you can confirm from an unbiased third party that the qualities indicated by the seller are legitimate. Only a certificate from GIA and AGS laboratories can provide that surety. They offer the gold standards for the diamond industry. You cannot compromise certification if your goal is to have the best money can buy.
Once you confirm the specifications, you can move to a self-examination of the stone. A certificate won’t tell you how a princess cut sparkles, whether the cushion cut looks good on your finger, or pick out the perfect emerald diamond for your preferred setting. That’s where the 4Cs of a diamond comes in place, and we’ll discuss them in fine details below.
After deciding how exactly you want your diamond to look like, it would be prudent to calculate a price estimate. Is it within your price range? Know that online stores present the best diamond deals without compromising the quality. A physical store will always be more expensive because it transfers overhead cost to customers.
Bottom Line Recommendation...
Sticking to the three rules above ensures you are getting the best value for your money.
The Pricing Structure of Diamond Differs From those of Other Products...
When you carefully look at the pricing structure of the day-to-day product we buy, you can distill it down to a fill-in-the-blanks template that works almost for every product. It all distills down to a summation of the costs of raw materials, labor fee, processing fee, overhead cost, etc.
The retail price equals the sum of all costs and expenses plus a percentage profit. And the markup differs depending on the brand and the difficulty of distribution.
But here is the other side of the coin:
Diamond prices are undisputedly opposite of the typical pricing system that other products employ. On the surface, it may look straight forward, but it gets complicated when you dig deeper.
What Dictates the Worth and Price of Rough Diamonds?
The market of the uncut, rough diamond is highly distinguishable from the polished gemstone.
Firstly, diamond preparation and production exceed society’s need. To be blunt, the supply of diamond is higher than the demand—diamonds aren’t rare.
In a free market, you’d expect the prices to drop when the supply exceeds demand. But diamonds prices appear to be more mysterious.
Mostly because supply is under the regulation by a few producers, cartels like De Beers—the diamond giants, ALROSA, and Rio Tinto maintain stable prices by regulating the volume of rough stones obtainable in the market at a specific time. The cartels also control mining, processing, and marketing of the rough stones.
Even though De Beers does not control the entire rough diamond market, the company still displays an indisputable impact on the prices of rough diamonds. Initially, De Beers had 85% of the rough diamonds. Today, the company owns 35-40% of all the rough diamonds.
De Beers organizes ten sights annually, where they set the prices. During the sight sessions, the company presents several collections of rough diamonds to the sightholders, and each compilation usually consists of 1-25 million dollars.
How De Beers Control Diamond Market Value...
For instance, when diamond prices fall, De Beers supplies fewer diamonds to sightholders, thus reducing the volume in supply. Alternatively, it can impose higher rates to the sightholders so than they can consume a lower amount.
Similarly, if a new market emerges, De Beers floods the market with diamonds at a throwaway price, thus offsetting the demand gap. Oddly enough, De Beers is so protective of the diamond market that it has even bought diamonds stolen from it’s mine to prevent thieves from selling the diamonds below the market price.
Diamond Price Chart...
In pricing, diamonds break into two classifications:
●Diamond priced against the Rapaport’s Price List
●Diamonds not priced against the Rapaport Price List.
The Rapaport Diamond Report for Polished Diamond Prices...
Pricing of polished diamonds is different because they have a set price on the market. Various factors enter the pricing equation, just like in valuing gold and oil. However, the calculation has less to do with the costs of producing polished diamonds and more with market preferences.
Martin Rapaport, a Belgian industry broker, along with his team, calculate the prices of diamonds. These decisions mirror the preset market state and get published on the Rapaport Diamond Report every week. The weekly report is only available for premium subscribers.
In the report, the main factors that determine the cost of polished diamonds are three of the 4 Cs—carat, color, and clarity.
The Rapaport Report displays a price for a combination of diamond color and clarity, with a weight range of 0.01 to 5.99. Rap prices are usually high, and traders typically use them for reference purposes. In truth, very few sellers strictly follow the prices in the Rap Report.
How to Use RapNet Price List...
To properly understand how to use the RapNet Price List, let’s first find dig deeper into what it is.
What is RapNet?
RapNet is a jewelry trading network powered by Rapaport. The network is selectively available premium members of diamond and jewelry trade. This network is the world’s largest and most trusted in the diamond industry.
On this trading platform, buyers and sellers directly interact without any trading fees or commission charges. Members of the RapNet network have access to 1,000,000+ of diamonds of any shape, clarity, size or color.
If you’re a diamond seller, RapNet offers a platform to source and sell fine jewelry. The membership for RapNet goes for $660 a year.
The RapNet Asking Price List...
The RapNet Price List is a presentation of the best and average Asking Prices on the RapNet Diamond Trading Network for certain diamond classes available for sale worldwide.
The prices on RapNet Asking Price List aren’t just for any diamond but for diamonds with Very Good cut or above-cut quality, Rapaport specification-2 and certified by GIA.
The RapNet Asking price provides a listing for sale for specific indicated date. The list presents discounts below or above standard Rapaport Price List.
How does the RapNet Asking Price differ From the Rapaport Pricing List?
Typically, the Rapaport Price List presents High Cash Asking Price that global diamond trade employs to find the base value to approximate the prices of a broad range of diamond sizes and qualities. On the flip side, RapNet Asking Price List is the real prices sellers ask for a specific diamond.
What’s more—and this is very interesting—RapNet Asking Prices List reveals comprehensive data about discounts and premiums to the standard Rapaport’s Price List.
Even more, RapNet Asking Price List includes different diamonds shape. Rapaport Pricing List offers prices for the Round diamond alone.
How to Use RapNet Asking Price List...
To read and calculate the diamond price using the RapNet Asking price list, let’s consider the sample of the chat below.
A Sample of RapNet Price List...
|0.30-0.39||RapNet Best/Average||Price (Dates)|
The table above looks like RapNet Asking Price List which is only accessible to jewelers and dealers.
On the topmost part, you'll find the diamond carat size range. Following is the header of the list and the publication dates come last.
Then comes the price for each diamond and the discounts available. The prices are consistently in hundreds. For the correct understanding, let’s use an example to walk us through the process of using the RapNet Asking Price List.
How to Use RapNet Asking Price List to Calculate value Diamond...
For instance, let's consider the diamond value highlighted above.
$2460 represents the best RapNet asking price offer for a Round, D, IF 0.30-0.39 diamond. -45% is the best RapNet asking price available illustrated as Rapaport’s price list.
$2595 shows the RapNet average asking price for the Round diamond and -35 is the RapNet average asking price represented as Rapaport’s Price List discount.
It is important to remember there is a big difference between the Rapaport Price List and RapNet Asking Price List.
Why Companies Lose the Certificate?
It is less common to find a certificate for a diamond with an I1 clarity grade.
Well-established companies rarely sell a GIA certified I1 diamond. They understand correctly that without the certificate; they sell such diamond at a higher price. Therefore, they won’t use the Rapaport diamond price list as well.
Discount and Premium Prices...
The real work in calculating diamond pricing is judging the discount or premium to the Rap price. Most often, diamond deals are made at a discount of Rap Price. Two diamond dealers haggle at the Rap Discount point.
However, note that the three Cs of diamond quality on Rap price only brings you to the baseline. Things then turn much subjective. Factors like Cut, fluorescence, and inclusion quality fades in to determine the discount of the Rap Price.
The “20 Below,” or “20 Back,” Rule...
To understand this correctly, let’s consider a diamond with an excellent cut, with a clarity of SI1 and the H color with no fluorescence. This diamond will look precisely like a G and might trade at a -20% or even -15% less than the Rap price for a similar G grade diamond. In the diamond world, such a situation is known as “20 below” or “20 back.”
A jeweler will want to bargain such a diamond at “15 back.” On the other hand, a diamond shopper will desire to acquire it at “20 below.” If you want to calculate the real price, it requires you to subtract the “percentage back” from the Rap Price.
Sweet Spots of Value...
When you take a closer look at the Rapaport Price List, you'll see how different prices between adjacent prices in each matrix unfolds. They are far from uniform.
For instance, the price difference between a diamond of VS2 clarity, color H and 1carat and that of VS2 clarity, color G and 1carat is $1000. But price difference of the identical VS2, F, and 1 carat and a 1 carat G VS2 is only $500.
In the diamond world, prices rarely rhyme or based on reasoning. It is a game of emotions. To help you get through these inconsistencies, you can seek an expert diamond dealer. That way, you can take advantage of sweet spots that are within the pricing grid.
For instance, it costs unreasonably much to make an upgrade from H color VS2 clarity to a G color VS2 clarity. It isn’t worth it as the visible difference is nearly unrecognizable.
The Effect of Rap Prices...
The establishment of Rap prices regulated diamond’s price manipulation. Which is good news for the diamond shopper. But to a diamond dealer who would want to hyper-inflate diamond price, Rap prices meant otherwise.
What’s more, Rap prices commoditized diamonds. For years the diamond industry marketed diamonds as something of infinite value.
In the first decades after coming up with the Rap Prices, some dealer continued selling diamond above the Rap prices. But as the diamond market diversifies, most retailers sell diamond around the rap prices.
Limitations of the Rapaport Price...
- It only focuses on Color, Clarity, and Carat as certified by GIA. It assumes Cut is of excellent grade.
- Rapaport also does not include Polish and Symmetry
- Different Diamonds of the Same Grade can have Different Outlook
One S12 diamond can be perfectly eye-clean, while the second one might have noticeable flaws. One F colored diamond can appear brilliant while another might be less brilliant because of strong fluorescence. A diamond that has a brighter appearance sells at a higher price.
- The Price is High
Rapaport itself says that the list is the high asking price. Most retailers apply discounts on the Rap Prices. Some diamond dealers show customers the Rapaport chat to convince them that they are getting a fair deal because they are selling below it. If you’re new in the industry, you can easily believe that
A Deeper Dive into how to Calculate Diamond Price...
To ensure you get the best value for your money, we’ll go over all the factors that affect diamond pricing so that you avoid getting ripped off.
What to Know About Diamond Prices: Diamond Cost and Quality the 4Cs and Beyond...
The 4 Cs of diamond grading—Carat, Cut, Color, and Clarity—nearly everyone knows about them. However, within these grades are subdivisions, judgment calls, and variation that Rapaport Diamond report don’t apply in their grading.
The 4Cs of a diamond dictates how much a diamond will cost. The more colorless and flawless a diamond is, the more valuable it gets.
But here is what brings everything into perspective:
Save your money on Color and Clarity. These features are usually unnoticeable by the average person or naked eye. Chances are that all you need is a diamond that looks eye-clean and colorless. Which doesn’t mean that you go for the lowest color or clarity grade. Knowing how to calculate the price of a diamond helps you pick out a perfect diamond within your price range.
How to Calculate Diamond Prices...
Multiple factors determine the end price of a diamond. And there is no diamond’s price calculator that fits all diamonds types. But generally, you can calculate per carat prize of all diamond.
Everyone in the diamond world focuses on carat. And for that reason, we’re going to explore it as the first of the 4Cs of a diamond. Overall, carat is the most visible of the 4 Cs. It refers to the diamond’s weight. One carat equals 0.2 grams.
Price increases per carat because, the heavier the carat, the rarer the diamond.
A Deeper Dive into the 4Cs...
Carat has the most significant impact on the price of a diamond. For instance, let’s consider several diamonds with similar color, clarity, and excellent cut.
The price of a stone directly increases with carat weight. Theoretically, a 0.5-carat diamond will cost double what a 0.4-carat diamond costs. It is a similar case for 0.75 and 1-carat diamond. Big diamonds are scarce, and their prices will reflect that.
However, if you take a closer look, you'll see that the most rapid price-shift happens at the half-carat and whole-carat point. And that characteristic presents a loophole in the diamond market to get you better value for your money. You can search for a diamond that’s just slightly under a whole number, e.g., 0.9 instead of 1.0 carat.
How to Calculate Price Per Carat...
For instance, if one carat costs $2500, a 0.5-carat diamond would cost $1250. You would calculate the price of that carat by multiplying 2500 X 0.5. The per-carat price increases as the weight and the quality increases.
However, you need to consider at the other Cs of a diamond—Color, Clarity, and Cut. And even more, different shapes come with different prices.
It is important to note that when creating a carat comparison, you must compare diamonds with the same certificate, clarity, fluorescence, and cut, and color. What’s more, check even on actual physical properties. Check on tints, flaws, or haziness.
The price per carat doesn’t always increase. That’s why you need to understand the pricing of different diamond categories.
And here is a simple fact that can save you tons of money:
Diamond is a retail product-driven more by emotion rather than reason. For example, 0.99-carat diamond only cost 1% more than a 0.98-carat diamond. On the other hand, a 1.00ct diamond cost 20% more than the same 0.99ct diamond. These two diamonds are merely visually different. But why is that?
It might be because you can say “It is a one-carat diamond” or maybe it is because it is in a 3-full digit. But you'll realize it is all about feelings.
Since diamond prices jump rapidly at a whole carat, lots of diamond cutters are under the compulsion to cut a gem that strikes a whole number. Unfortunately, stressing on hitting a whole number carat instead of maximum brilliance results to undesirable diamond characteristics. Which leads us to This creates the importance of considering the next C—Cut.
Cut (And How it Impacts Diamond Price)...
The cut of a diamond is the most significant quality to consider. In fact, whatever comprises you make on the other attributes are all worth it for an excellent cut.
Here is the reason why:
Diamond’s cut is what defines its brilliance, fire, sparkle, and overall appeal. An ideal cut can create a sparkle that can hide inclusions and mask undesirable colors. And that’s another loophole in the diamond world to find value for money.
But do not confuse diamond’s Cut with a diamond shape. The cut is the symmetry, proportion, and polish. On the other hand, the diamond shape is the outline shape of the diamond as you observe it from the top down.
It is a diamond’s cut that determines how brilliant a diamond is. It defines the angle and how light bounces off each facet. Imperfect diamond cuts leak light resulting in a dull appearing diamond.
An ideally cut diamond has a seamless proportion, perfect symmetry, and excellent polish. Facets and dimensions are purposefully cut to maximally internal reflect light.
Aesthetically, Cut makes a significant impact on beauty—the better the cut, the more brilliant the diamond. That gives Cut a higher priority in diamond—get the best cut you can. With a perfect cut, you can afford to down a bit of the other Cs.
What’s more, an ideal cut can make a diamond appear large, and a poor cut can waste the carat weight.
As you'll notice, there is quite a jump between an excellent cut and more on super ideal cut.
Diamond’s Color–How Crucial is It?
Folks believe that color and brilliance affects how brilliant a diamond can be. But here is the fact:
The two has nothing to do with the diamond’s brilliance. However, diamond color still has some impact on the overall beauty of a diamond.
Color is the slight yellow hue in a diamond. The color ranges from D (totally colorless) to Z (yellow/brown tint). However, most retailers don’t sell any diamond less than K.
Totally colorless diamonds are exponentially rare and thus come at a premium price. Most diamonds have a slight yellow hue, which mostly the naked eye cannot detect.
The price difference from one color to the next is wildly staggering. But here is the thing:
It is difficult to tell between colorless, and almost colorless diamond. So there is no point in splurging on something with no visible difference
To get the best value of your money, you can consider going with color H. H is typically viewed as the inflection point between a slightly noticeable hue in a diamond and colorless diamonds. Most people can hardly differentiate.
H is a sure bet. And it is preferable to have a diamond with J color with an excellent cut rather than a Fair grade cut diamond with color H.
Clarity—How Important is It?
Clarity of a diamond describes the grade of flaws it has. Clarity is of 2 types:
●Inclusion (internal flaws)
●Blemishes (Flaws on the Surface)
Most diamonds have flaws. What matters most is the visibility and location of the imperfection.
The expensive mistake you can do is to assume that it requires highly graded clarity for a diamond to be eye-clean. But here is some brutal honesty about clarity:
Laboratories grade diamond’s Clarity based on visible flaws under an X10 magnification. In real life, no human eye has the power to examine your diamond in such detail. An imperfection would have to be grosser to be more visible to the casual observer.
Even if you buy a diamond with the highest clarity grade, you might not be able to appreciate it because it is invisible to the naked eye.
The clarity of VS2 can give you the best value for your money.
For instance, if you look at price difference as we move up and down in clarity of diamond with the same carat, cut and color, you'll find that internally flawless diamonds are priced so high, because of how rare they’re. But just as with color, it is nearly impossible to appreciate high clarity grade because the difference isn’t visible to the naked eye.
All in all, remember that even diamonds with identical 4Cs (including clarity) can differ a lot in pricing. This is because of the type of flaw and if the flaw is visible or not. For example, you'll find SI2 diamonds that are perfectly eye-clean, while you'll find others with an unappealing black spot amid the diamond.
Beyond the 4 Cs—Additional Factors That Affect Diamond Pricing...
Let’s look at other factors that affect diamond pricing other than the 4Cs:
Certification is essential, so much such that it is often assumed to be the 5th C.
There are tons of diamond grading labs globally, including, GIA, AGS, EGL, and IGI, to name a few. Each of these labs has its grading criteria and standard.
However, GIA and AGS stand out as they have a global reputation in having the highest and the most consistent grading system. For instance, GIA can grade a diamond as SI2 but a different lab-grade it as VS2 clarity. Some certification companies may inflate their quality by as much as 2 whole grades. You might spend a lot on an inferior product that only looks good on paper.
For this reason, GIA and AGS are highly recommendable. They’re well known for precision and consistent in their diamond grading system.
However, Diamonds certified by GIA and AGS can cost more by 10 -30% because it is more expensive to receive certification from these companies. But you should be non-compromising when it comes to certification. You need to create the surety that you’re buying what the diamond claims to be.
And here is something worth understanding:
A jeweler can lawfully be off by one clarity or color grade—The Federal Trade Commission legally allows that. So you’re well-aware that a jeweler can sell a diamond to you as VS2 H when it is an SI2 I to make you think that you’re getting a better diamond and they can fetch a higher price. This is a reason enough to stick to GIA or AGS report when setting off to buy the diamond. Both labs have a global reputation for accuracy and consistency in grading practice.
Where to Buy?
Jewelers markup has a significant influence on diamond pricing. You can find the same quality diamond with many times the higher price on other places. Preferably, opt to shop online as the prices can cost as much as 50% less than physical jewelry stores with big names. Low overhead cost is one of many reasons.
The Shape of the Diamond Makes the Difference Too...
Among all diamonds, Round diamonds are the priciest. Their popularity is because Round diamond display incredible brilliance, and they have been there since ancient times.
Princess cut diamond is the second most popular shape and second most expensive because they are the most sparkly after the round diamond.
An oval diamond is the modern diamond shape, elegant twist. They are the third most popular after the Princess shape.
Other cuts like pearl Asscher, Emerald, and Marquise are fancy cuts and cost less compared with the different diamond shapes.
You can go with a shape other than round and save as much as 20%-40%. You can then divert that money towards other qualities of the diamond. But as the rule of thumb, your specifications comes first and your budget second.
However, for the fancy-shaped diamonds, GIA does not certify their cut grade. It gets challenging to tell if the diamonds are what the certificate says they are. An alternate shape demands some research and advice from a trustworthy jeweler.
Diamond fluorescence is the soft glow (usually blue) a diamond produces under ultraviolet light. This effect is purely natural-appearing in 1/3 of all diamonds in the world.
Frequently, the blue fluoresces doesn’t negatively affect a diamond’s outlook. But since fluorescence appears undesirable to many, you can use it to your advantage. The blue fluorescence can counteract any yellowish hue that a lower grade diamond may have. Therefore, it may improve the color of diamonds with grade G or lower.
Note that this slight increase in value only holds in blue fluorescence.
On the flip side, yellow or green fluorescence will always lower diamond prices unless the diamond is fancy yellow or green. In such cases, this fluorescence color will make the color appear more saturated, thus, enhancing their value. But generally, fluorescence decreases the value of D-F color grade diamonds but may increase the price of G-J diamond.
Medium to strong fluorescence can cause the stone to appear milky, thus decreasing its value.
How Diamond Prices Have Changed Over the Years and Why...
As the world’s economy continues to grow, the demand for luxury products increases while mining of natural diamond declines. Which contributes to the astronomical prices.
Over the past ten years, prices of diamonds have increased by approximately 32-33%, stating that there has been an average annual price increase of 4%.
Similar to any other product, the price of polished diamonds is driven by various forces. For instance, the price might change because of external factors like underlying economic dynamics and internal factors like traders’ profit margins
Annually, diamond prices fluctuate on a moderate scale, from high to low, by a percentage of 5-7%.
The Bottom Line...
Examining the best price diamond prices is a critical process for both investors and consumers. The uncommon and alluring gemstone has been around since the ancient time, and it has kept its price high since its discovery. With the persistent economic growth, the value of diamond has grown with it.
But from the facts above, you can see that knowing the 4 Cs alone isn’t enough to dig your feet in with diamond pricing—determining the best deal for a diamond is complex. And it doesn’t matter even if you fully understand the mechanism of how prices work. There is nothing as much an individual can do to change how things work.
If you were looking for a magical mathematical formula to calculate the price of a diamond, unfortunately, there isn’t one, yet. There is no solve-it-all equation to determine the price. The best thing is to understand the quality of diamond you’re after then can you compare the different prices.