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Diamond Prices Chart 2021 | Calculate Diamond Prices

Diamond Prices Chart 2021 | Calculate Diamond Prices

Diamond Prices Chart 2021 | Calculate Diamond Prices

Posted by Sharif Khan on 28th Feb 2021

The process of calculating diamond prices is extremely tedious given the factors that need to be considered to price a diamond. In the absence of essential price information, a buyer will most probably make a misinformed decision. Therefore, it is a prerequisite to determine that the stone under consideration is worth the price prior to its acquisition.

Average Diamond Prices Index

The chart below reflects an average wholesale and retail price for one to three carats round diamonds based on the 3Cs with GIA and AGS grading, very good to excellent Cut, and none to faint blue fluorescence. Additionally, price estimates have also been provided below for other diamond shapes.

Average 1 Carat Price Index

Compare Online Prices Here.

1 Carat Round Cut - Best Petra Gems Estimate - Average Price
Clarity D
Wholesale Retail
VS2 $ 6,180 $ 8,034
VS1 $ 6,768 $ 8,798
VVS2 $ 7,680 $ 9,984
VVS1 $ 8,760 $ 11,388
IF $ 10,188 $ 13,244
FL $ 12,311 $ 16,004
Clarity E
Wholesale Retail
VS2 $ 5,841 $ 7,593
VS1 $ 6,313 $ 8,207
VVS2 $ 6,254 $ 8,130
VVS1 $ 7,906 $ 10,278
IF $ 8,614 $ 11,198
FL $ 10,220 $ 13,286
Clarity F
Wholesale Retail
VS2 $ 5,697 $ 7,406
VS1 $ 6,112 $ 7,946
VVS2 $ 6,136 $ 7,977
VVS1 $ 6,750 $ 8,774
IF $ 6,840 $ 8,892
FL $ 7,866 $ 10,226
Clarity G
Wholesale Retail
VS2 $ 5,278 $ 6,914
VS1 $ 5,614 $ 7,355
VVS2 $ 5,858 $ 7,674
VVS1 $ 6,318 $ 8,277
IF $ 6,630 $ 8,686
FL $ 7,586 $ 9,937
Clarity H
Wholesale Retail
VS2 $ 4,976 $ 6,568
VS1 $ 5,047 $ 6,663
VVS2 $ 5,327 $ 7,031
VVS1 $ 5,558 $ 7,336
IF $ 5,897 $ 7,784
FL $ 6,653 $ 8,782

James Allen

Average 1.5 Carat Price Index

Second Reference for Comparing Prices Online (Here)

1.5 Carat Round Cut - Best Petra Gems Estimate - Average Price
Clarity D
Wholesale Retail
VS2 $ 14,159 $ 18,406
VS1 $ 14,040 $ 18,252
VVS2 $ 16,175 $ 21,027
VVS1 $ 18,540 $ 24,102
IF $ 21,330 $ 27,729
FL $ 26,307 $ 34,199
Clarity E
Wholesale Retail
VS2 $ 12,672 $ 16,474
VS1 $ 14,355 $ 18,662
VVS2 $ 14,992 $ 19,490
VVS1 $ 17,744 $ 23,068
IF $ 18,540 $ 24,102
FL $ 21,321 $ 27,717
Clarity F
Wholesale Retail
VS2 $ 12,276 $ 15,959
VS1 $ 14,130 $ 18,369
VVS2 $ 14,616 $ 19,001
VVS1 $ 15,120 $ 19,656
IF $ 15,300 $ 19,890
FL $ 17,213 $ 22,376
Clarity G
Wholesale Retail
VS2 $ 11,507 $ 15,075
VS1 $ 12,308 $ 16,124
VVS2 $ 12,760 $ 16,716
VVS1 $ 13,698 $ 17,944
IF $ 13,750 $ 18,013
FL $ 14,896 $ 19,514
Clarity H
Wholesale Retail
VS2 $ 8,852 $ 11,685
VS1 $ 9,252 $ 12,213
VVS2 $ 9,580 $ 12,645
VVS1 $ 9,682 $ 12,781
IF $ 10,640 $ 14,045
FL $ 11,526 $ 15,215

Average 2 Carat Price Index

Third Reference for Comparing Diamond Prices (Here)

2 Carat Round Cut - Best Petra Gems Estimate - Average Price
Clarity D
Wholesale Retail
VS2 $ 24,077 $ 28,892
VS1 $ 26,146 $ 31,375
VVS2 $ 31,075 $ 37,290
VVS1 $ 33,888 $ 40,666
IF $ 37,440 $ 44,928
FL $ 49,920 $ 59,904
Clarity E
Wholesale Retail
VS2 $ 24,720 $ 29,664
VS1 $ 25,920 $ 31,104
VVS2 $ 28,800 $ 34,560
VVS1 $ 33,142 $ 39,770
IF $ 36,072 $ 43,286
FL $ 45,090 $ 54,108
Clarity F
Wholesale Retail
VS2 $ 23,304 $ 27,965
VS1 $ 24,840 $ 29,808
VVS2 $ 27,696 $ 33,235
VVS1 $ 30,264 $ 36,317
IF $ 31,680 $ 38,016
FL $ 36,960 $ 44,352
Clarity G
Wholesale Retail
VS2 $ 21,118 $ 25,552
VS1 $ 22,289 $ 26,969
VVS2 $ 24,240 $ 29,330
VVS1 $ 25,224 $ 30,521
IF $ 26,880 $ 32,525
FL $ 30,240 $ 36,590
Clarity H
Wholesale Retail
VS2 $ 18,480 $ 22,915
VS1 $ 19,656 $ 24,373
VVS2 $ 21,576 $ 26,754
VVS1 $ 22,990 $ 28,507
IF $ 23,136 $ 28,689
FL $ 25,450 $ 31,558

 Average 3 Carat Price Index

3 Carat Round Cut - Best Petra Gems Estimate - Average Price
Clarity D
Wholesale Retail
VS2 $ 24,077 $ 28,892
VS1 $ 26,146 $ 31,375
VVS2 $ 31,075 $ 37,290
VVS1 $ 33,888 $ 40,666
IF $ 37,440 $ 44,928
FL $ 49,920 $ 59,904
Clarity E
Wholesale Retail
VS2 $ 24,720 $ 29,664
VS1 $ 25,920 $ 31,104
VVS2 $ 28,800 $ 34,560
VVS1 $ 33,142 $ 39,770
IF $ 36,072 $ 43,286
FL $ 45,090 $ 54,108
Clarity F
Wholesale Retail
VS2 $ 23,304 $ 27,965
VS1 $ 24,840 $ 29,808
VVS2 $ 27,696 $ 33,235
VVS1 $ 30,264 $ 36,317
IF $ 31,680 $ 38,016
FL $ 36,960 $ 44,352
Clarity G
Wholesale Retail
VS2 $ 21,118 $ 25,552
VS1 $ 22,289 $ 26,969
VVS2 $ 24,240 $ 29,330
VVS1 $ 25,224 $ 30,521
IF $ 26,880 $ 32,525
FL $ 30,240 $ 36,590
Clarity H
Wholesale Retail
VS2 $ 18,480 $ 22,915
VS1 $ 19,656 $ 24,373
VVS2 $ 21,576 $ 26,754
VVS1 $ 22,990 $ 28,507
IF $ 23,136 $ 28,689
FL $ 25,450 $ 31,558

Points to consider

  • The above price index for 1 carat, 1.5 carat, 2 carat, and 3 carat diamonds will be updated periodically to reflect the changing retail and wholesale diamond prices.
  • The second section of this article will explain how diamond prices are determined and calculated.
  • The above wholesale and retail prices chart contains Petra Gems' best average estimates based on the data of leading diamond suppliers and online retailers.
  • The prices represent round brilliant cut diamonds. For tips on how to calculate the prices of fancy cut stones, see the estimations and suggestions below.
  • The price is for an excellent cut diamond that has none to faint blue fluorescence in each category.
  • The prices apply to GIA and/or AGS graded diamonds only.
  • The latest price estimates are from July 2020. The list will be updated within 4-5 months if we notice any significant price changes in the diamond industry.
  • Compare these prices with site 1 and site 2 because they have the best diamond prices online.
  • These price estimates are provided on a very conservative basis. Finding a deal below these prices should be considered a bargain.
  • For 3+, and especially 4+, carat, please contact us so that we can compare retail prices and wholesale diamonds in real-time to share more accurate estimates and make the process of buying a diamond convenient for you.

Fancy cut diamonds’ prices

Round cut diamonds are generally more expensive than fancy cut diamonds. It takes a bigger/larger rough diamond to be cut into a round diamond than it does to be cut into a fancy cut such as a cushion cut. Below are our best estimates of fancy cut diamonds based on the above price indexes. The demand and supply of each diamond shape as well as surplus inventory in the marketplace also affect these prices.

Overview:

Given that diamonds are among the most valuable gemstones in the world, it is important to learn how their prices are determined and who determines them, and, most importantly, why do two identical diamonds carry similar price tags. Having answers to these questions will set a pro apart from most buyers.

In this article, we will explore factors that affect the final price of a diamond. In addition to the 4Cs, we will cover the importance of diamond certification, physical appearance, and buying online vs buying locally.

The price of rough diamonds

The market for uncut rough diamonds is highly distinguishable from the polished/cut one.

Mainly De Beers (the diamond giants), ALROSA, and Rio Tinto, among others, maintain stable prices by regulating the volume of available rough stones in the market at a specific time. These companies also control the mining, processing, and marketing of rough stones. In turn, limited supply stabilizes and determines the prices of polished diamonds. It is also noteworthy that unless a supplier is fully compliant with the Kimberly process, they are not permitted to be involved in the business of rough diamonds.

Even though De Beers does not control the rough diamond market entirely, the company has a significant influence on the prices of rough diamonds—initially, De Beers owned about 85% of all rough diamonds. In recent times, however, their market share has dropped to about 35-40%.

De Beers organizes ten sights annually during which they present several collections of rough diamonds to sight holders; each compilation is usually worth 1-25 million dollars. Sight holders are large diamond dealers who then cut and supply the stones to the market. It is a matter of prestige to be a De Beers sight holder within the diamond trade.

The price chart of polished diamonds:

Whilst polished diamonds are priced, they are classified into two categories:

  1. Diamonds priced against the Rapaport’s Price List; and
  2. Diamonds that are not priced against the Rapaport’s Price List

The Rapaport Diamond Report of Polished Diamond Prices:

The pricing of polished diamonds is more or less standardized in the diamond market. Several factors influence the pricing equation, having to do less with cost and more with market demand.

Martin Rapaport, a Belgian industry broker, along with his team calculates the prices of diamonds. These prices mirror the present market state of the industry and get published on the Rapaport Diamond Report on a weekly basis which is available only for premium subscribers.

In the report, the main factors that determine the cost of polished diamonds are three of the 4Cs - 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, typically used by traders for reference purposes. In reality, very few sellers strictly follow the prices in the Rap Report.

How to use the RapNet Price List:

RapNet is a jewelry trading network powered by Rapaport. The network is selectively available to premium members of the diamond and jewelry trade and is the world’s largest, and most trusted, in the diamond industry.

On this platform, buyers and sellers directly interact without any trading fees or commission charges. Members of the RapNet network have access to more than 1,000,000 diamonds of any shape, clarity, size, and color.

For the diamond seller, RapNet offers a platform to source and sell diamonds. The membership for RapNet is $660 annually.

The RapNet Asking Price List:

The RapNet Price List is a presentation of the average and best-asking prices on the RapNet Diamond Trading Network for certain diamond classes available for sale worldwide.The prices on RapNet Asking Price List are not just for any diamond but for diamonds with a very good cut or above-cut quality, Rapaport specification-2, and certified by the GIA.

The RapNet asking price provides a listing for sale for a specific indicated date. The list presents discounts below or above the standard Rapaport Price List.

How does the RapNet Asking Price List differ from the Rapaport Pricing List?

Typically, the Rapaport Price List presents the High Cash Asking Price that the global diamond trade uses 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 price that sellers ask for specific diamonds.

What’s more (and this is very interesting), the RapNet Asking Prices List reveals comprehensive data about discounts and premiums to the standard Rapaport’s Price List.Also, the RapNet Asking Price List includes different diamond shapes; whereas the Rapaport Pricing List offers prices for round diamonds only.

How to use the RapNet Asking Price List?

To read and calculate the diamond price using the RapNet Asking Price List, it is important to be familiar with the chart as shown below. 

A Sample of RapNet Price List:

0.30-0.39 RapNet Best/Average Price (Dates)
IF VVS1 VVS2 VS1 VS2
D 2,460/2591

-45/-35%

2006/2591

-45/-37%

1824/2291

-43/-37%

1628/1939

-42/-37%

1534/1931

-47/-45%

E 2166/2569

-45/-30%

1806/2296

-46/-33%

1652/1981

-45/-30%

1486/1793

-42/31%

1366/1660

-43/-31%

F 1340/2292

-46/-33%

1805-2207

-40/-30%

1586/1859

-41/-33%

1395/1671

-40/-30%

1210/1561

-41/-30%

G 1869/2273

-43/-3%

1655/2066

-43/-29%

1575/1789

-35/29%

1364/1592

-56/-28%

1197/1382

-37/-27%

H 1343/2379

-45/-34%

1638/1879

-37/29%

1426/1676

-34/-27%

1260/1468

-37-27%

1071/1248

-37/-27%

I 1224/1706

-41/-29%

1325/1515

-37/-29%

1300/1461

-55/-50%

1134/1313

-37/-29%

900/1114

-34/-50

J 1152/1313

-34/-27%

1000/1253

-40/-25

958/1186

-42/-27%

880/1008

-37/-25%

841/951

-34/-50%

K 1136/1216

-24/34%

1000/1098

-32/-27%

882/1001

-37/-28%

780/806

-55/-24%

636/787

-40-29%

The table above is the RapNet Asking Price List which is only accessible to jewelers and dealers.

At the very top of the list is the diamond carat size range, followed by the rest of the list and the publication dates. Next to them is the price for each diamond and the discounts available; the prices are consistently in the hundreds.

How to use the RapNet Asking Price List to calculate the value of a diamond?

For instance, consider the diamond value highlighted in the chart 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 as illustrated in Rapaport’s Price List.

$2595 shows the RapNet average asking price for a round diamond and -35 is the RapNet average asking price represented as Rapaport’s Price List discount.

It is important to remember that there is a big difference between the Rapaport Price List and the RapNet Asking Price List.

Discount and premium prices:

The real work in calculating diamond pricing is judging the discount or premium to the Rap price. Oftentimes, diamond deals are made at a discount of the Rap price. Two diamond dealers will haggle at the Rap discount point.

However, note that the three Cs of diamond quality on Rap price only bring us the baseline; from then onwards, things turn subjective. Factors like cut, fluorescence, and inclusion quality fade so that the discount Rap price can be determined.

The “20 Below,” or “20 Back,” Rule:

To understand this correctly, consider a diamond with an excellent cut, a clarity grade of SI1, and the color H containing no fluorescence. This diamond will look precisely like a G and might trade at -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 were to calculate the real price, it would require 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 will see how different prices between adjacent prices in each matrix unfold; they are not uniform.

For instance, the price difference between a diamond of VS2 clarity and color H weighing 1 carat and that of VS2 clarity and color G also weighing 1 carat is $1000. But the price difference between the identical VS2, F, and 1 carat and a 1 carat G VS2 is only $500.

In this industry, prices are rarely based on sound reasoning; the pricing process becomes emotional. To help us get through these inconsistencies, you should seek an expert diamond dealer’s assistance in order for you to take advantage of the sweet spots that are within the pricing grid. Such assistance is important because in case you are confused about making an upgrade from H color VS2 clarity to G color VS2 clarity—a move that is barely noticeable, you would be able to make an informed decision and realize that it is not actually worth the difference in price which is, in fact, significant.

The effect of Rap prices:

The establishment of Rap prices regulates a diamond’s price manipulation—a piece of good news for diamond shoppers. But for a diamond dealer who would want to hyper-inflate diamond prices, Rap prices are unprofitable. Moreover, Rap prices commoditized diamonds, and for years on end, the diamond industry marketed diamonds as something of infinite value.

In the first decades of the introduction of Rap Prices, some dealers continued selling diamonds above the Rap prices. But as the diamond market continues to diversify, most retailers sell diamonds around the rap prices.

Limitations of the Rapaport price:

  1. It only focuses on color, clarity, and carat as certified by the GIA, and assumes that cut is of an excellent grade.
  2. Rapaport also does not include polish and symmetry
  3. Different diamonds of the same grade can have different outlooks

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 of the same color might be less so because of strong fluorescence. It is worth noting here that a diamond that has a brighter appearance sells at a higher price.

The price is high

Rapaport itself says that the list assumes the highest asking price, taking advantage of which 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.

A deeper dive into calculating diamond price:

To ensure that buyers get the best value for their money, we shall look into the factors that affect diamond pricing.

As must have become evident now, nearly everyone knows about the 4Cs of diamond grading - carat, cut, color, and clarity. However, within these grades are subdivisions, judgment calls, and variation that the Rapaport diamond report does not list in its grading.The 4Cs dictate 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 money on color and clarity; for these factors are usually unnoticeable for the average person or unobservable for the naked eye. Chances are that what is needed is a diamond that looks eye-clean and colorless.

Carat:

Carat has the most significant impact on the price of a diamond. For instance, consider several diamonds with similar color, clarity, and excellent cut.The price of a diamond directly increases with carat weight. Theoretically, a 0.5-carat diamond will cost double what a 0.4-carat diamond costs—the case is similar for 0.75 and 1-carat diamonds. Big diamonds are scarce; their prices will reflect that.

However, if you take a closer look, you will see that the most rapid price-shift happens at the half-carat and whole-carat points, and this is the point that embodies a loophole in the diamond market in order to get people more value. Searching for a diamond that is just slightly under a whole number, e.g., 0.9 instead of 1.0 carat, could be a great option for someone with option constraints.

How to calculate the 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 weight and quality increase.

However, you also need to consider the remaining 3Cs of a diamond—color, clarity and cut. Also, it is noteworthy that different shapes come at different prices.

It is important to remember that when creating a carat comparison, you must compare diamonds with the same certificate, clarity, fluorescence, cut, and color. Besides, it is also a requirement to look into the physical properties of diamonds and see to it that they do not contain any tints, flaws, or haziness.

Diamond is a retail product-driven more by emotion than it is by reason. For example, a 0.99-carat diamond only costs 1% more than a 0.98-carat diamond. On the other hand, a 1.00ct diamond costs 20% more than the same 0.99ct diamond on account of the fact that these two are visually different. But why is that?

Since diamond prices jump rapidly as the carats increase, the majority 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 in undesirable diamond characteristics. This leads us to consider the next C—cut.

Cut:

The cut of a diamond is the most significant quality to consider owing to the fact that whatever compromises you make with the other factors are worth the effort for an excellent cut.

Here is the reason why:

A diamond’s cut is what defines its brilliance, fire, sparkle, and its overall appeal. An ideal cut can create a sparkle that can hide inclusions and mask undesirable colors, making it another loophole in the diamond world to find value for money.

But do not confuse a diamond’s cut with a diamond’s shape. The cut is the symmetry, proportion, and polish; whereas a diamond’s shape is the outline shape of the diamond from the top down.

It is a diamond’s cut that determines how brilliant a diamond is, and defines the angle and how light bounces off of each facet. Imperfect diamond cuts leak light, resulting in a diamond appearing dull.

An ideally cut diamond has a seamless proportion, perfect symmetry, and excellent polish. Facets and dimensions are purposefully cut to maximize the reflection of internal light.

Aesthetically, the cut makes a significant impact on a diamond’s beauty—the better the cut, the more brilliant the diamond. It gives the cut higher priority in a diamond, and so it is recommended that you get the best cut possible. With a perfect cut, you can afford to scale down the other Cs. An ideal cut, furthermore, can make a diamond appear large whereas a poor cut can waste the carat weight.

It is of note here that there exists a significant jump between an excellent cut and a super ideal cut.

Color:

The diamond color has a significant impact on the overall brilliance of a diamond. It is the slight yellow hue in a diamond and ranges from D (totally colorless) to Z (yellow/brown tint). However, most retailers do not sell any diamonds less than K.

Colorless diamonds are exponentially rare and thus come at a premium price. Most diamonds have a slight yellow hue; one which the naked eye cannot detect.And despite the fact that the price difference from one color to the next is random, here is something you need to think through:

It is difficult to tell a colorless diamond from an almost colorless one; implying that there is no point in spending money extravagantly on something with no visible difference.

To get the best value for your money, consider going with color H which is typically viewed as the inflection point between a slightly noticeable hue in a diamond and a colorless diamond. Most people can hardly differentiate between the two.

H is a sure bet, but it is still preferable to have a diamond with the color J and an excellent cut rather than a fair grade cut diamond with the color H.

Clarity:

The clarity of a diamond describes the grade of flaws it has. Flaws usually consist of 2 types:

  • Inclusion (internal flaws)
  • Blemishes (flaws on the surface)

Most diamonds have flaws, but what matters the most is the visibility and location of the imperfections.

The expensive mistake that one can make is to assume that it requires a highly graded clarity for a diamond to be eye-clean. But here is some raw honesty about clarity:

Laboratories grade a diamond’s clarity based on visible flaws under an X10 magnification. In real life, no human eye can examine a diamond in such detail. An imperfection would have to be evident to be visible to a 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—even if there were any inclusions or blemishes, chances are that you wouldn’t be able to notice them.

The clarity of VS2 can give the best value for money.For instance, if you look at price difference as you move up and down in the clarity grade of a diamond with the same carat, cut, and color, you will notice that internally flawless diamonds are priced higher because they are rare. However, just as with color, it is nearly impossible to appreciate high clarity grade because the difference is not visible to the naked eye.

Remember that diamonds with identical 4Cs (including clarity) can differ significantly in pricing; this is so because of the type of flaw and its visibility or lack thereof. For example, there are SI2 diamonds that are perfectly eye-clean, while there are others with an unappealing black spot in them.

Beyond the 4Cs: Additional factors that affect diamond pricing:

The prices of diamonds can vary astronomically even if the stones appear similar to the naked eye. Factors that affect diamond pricing other than the 4Cs include:

Certification:

A certification from a reputable lab is arguably the most important factor in determining the price of a diamond. First and foremost, it will inform the buyer that the diamond is a natural gemstone. With a grading report, a buyer can also confirm the quality of the stone from an unbiased third party. The GIA and the AGS are the best labs for grading diamonds.

Why do companies not offer a certificate sometimes? It is not too common to find a certificate for a diamond with an I1 clarity grade. Well-established companies rarely sell a GIA certified I1 diamond, and assume that without the certificate, they might be able to sell such diamonds at the same or higher prices.

Physical appearance:

After confirming the specifications of a diamond in a report, a grading report will not completely confirm how does a stone sparkle. The price of the stone will also be affected by the brilliance of the stone to the naked eye in-person. Certification is essential, so much so that it is often assumed to be the 5th C.

There are tons of diamond grading labs globally, including the GIA, the AGS, the EGL, and the IGI, to name a few, each of whom has their own grading criteria and standard.

However, the GIA and the AGS stand out as they have a global reputation for having the highest and the most consistent grading system. For instance, the GIA can grade a diamond as SI2 but a different lab would grade it as VS2 clarity. Some certification companies may even inflate their quality by as much as 2 whole grades.

It is for this reason that the GIA and the AGS are highly recommended. They are well known for precision and consistency in their diamond grading system.

However, diamonds certified by the GIA and the AGS can cost 10-30% more because it is more expensive to receive certification from these companies than it is from their counterparts. We suggest that no compromise should be made when it comes to certification.

Online vs local:

Knowing that some online stores offer better selection and pricing without compromising on quality is also critically important. Physical stores offer higher prices because they transfer overhead costs to customers.

Jeweler’s markup has a significant influence on diamond pricing. The same quality diamond is priced many times higher in other places. Preferably, opt to shop online as the prices can cost as much as 50% less than big-name jewelry stores. Low overhead cost is one of the several reasons for this disparity in pricing.

Shape makes a difference too:

Among all the diamonds, round diamonds are the most expensive. Their popularity stems from the fact that they display incredible brilliance and are very old diamonds.

Princess cut diamonds are the next most popular shape and the next most expensive because they sparkle the most after the round diamond.

An oval diamond is the modern diamond shape, with an 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 as compared to other diamond shapes.

Choosing a shape other than round can help you save as much as 20%-40%. Diverting that money towards other factors can be helpful.

Diamond fluorescence:

Diamond fluorescence is the soft glow—usually blue—that a diamond produces under ultraviolet light. This visual effect is natural in 1/3 of all the diamonds in the world.

Oftentimes, the blue fluorescence does not negatively affect a diamond’s outlook. But since fluorescence appears undesirable to many and can be used to our advantage at times, 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. (Please note that this slight increase in value only holds for blue fluorescence diamonds.)

On the flip side, yellow or green fluorescence will always lower a diamond’s price unless the diamond is a fancy yellow or green. In such a case, 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, though it may increase the price of G-J diamonds. Medium to strong fluorescence, conversely, can cause the stone to appear milky, thus decreasing its value.

How have diamond prices changed over the years, and why?

As the world’s economy continues to grow, the demand for luxury products increases whereas diamond mining declines which help contribute 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%.Annually, diamond prices fluctuate on a moderate scale, from high to low, by a percentage of 5-7%.

Similar to every other product, the prices of polished diamonds are driven by various forces; for instance, the prices may change because of external factors, say, underlying economic dynamics, and internal factors, say, traders’ profit margins.

An Important note in light of COVID-19:

Many buyers are inquiring whether the Coronavirus pandemic is bringing down diamond prices drastically. In our opinion, a small number of diamond dealers have slightly lowered their prices by 3-5%, although there has yet to be observed an industry-wide decline in price. If you intend to buy a stone, we recommend that you buy it during this downturn. Because of a potentially increased demand later this year and added inflation due to more dollar printing, the prices of commodities, including diamonds, will most probably go higher in the mid-to-long-term.

Key Takeaways:

Examining the best diamond prices is a critical process for both investors and consumers, which, compounded with the various cuts and shapes given to diamonds, bear the potential of making one dismayed while shopping for a diamond. Amid such confusion, we emphasize that you equip yourself with the required set of information before purchasing a stone. But whilst you do so, know that the uncommon and alluring gemstone has been around for a long time and has kept its high value ever since it was discovered; for with persistent economic growth, the value of a diamond has also grown. Therefore, if you take the trouble of spending your money on a diamond that accommodates all 4Cs to the best of its capability, it is highly likely that its resale value will skyrocket, allowing you to resale it at a much higher price in case need be.

Last, there is no magical mathematical formula to calculate the price of a diamond, no simple equation to determine the price. Be that as it may, knowing the quality of a diamond can help you determine the price, and this you shall be able to do if you pay enough attention to the information we posit before you.