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Diamond Prices August 2021 (Real Price Chart)

Diamond Prices August 2021 (Real Price Chart)

Diamond Prices August 2021 (Real Price Chart)

Posted by Sharif Khan on 1st Aug 2021

Average Diamond Price Chart

The chart below reflects an average wholesale and retail price for one to three carat round diamonds. These prices apply only to GIA and AGS graded diamonds and the criteria are based on carat weight, clarity, color, cut (very good to excellent Cut), and none to faint blue fluorescence. In addition, in the subsequent section, price estimates are also provided for other ‘fancy cut’ diamonds i.e., a princess or oval cut.

Average 1 Carat Price Chart Index

Compare Online Prices Here.

1 Carat Round Cut - Best Petra Gems Estimate - Average Price
Clarity D
Wholesale Retail
SI1 $ 5,545 $ 6,745
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
SI1 $ 5,440 $ 6,635
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
SI1 $ 5,363 $ 6,477
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
SI1 $ 5,227 $ 6,334
VS2 $ 5,478 $ 6,914
VS1 $ 5,714 $ 7,355
VVS2 $ 5,958 $ 7,674
VVS1 $ 6,318 $ 8,277
IF $ 6,630 $ 8,686
FL $ 7,586 $ 9,937
Clarity H
Wholesale Retail
SI1 $ 4,631 $ 5,858
VS2 $ 4,976 $ 6,468
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

Average 1.5 Carat Price Chart Index

Second Reference for Comparing Prices Online (Here)

1.5 Carat Round Cut - Best Petra Gems Estimate - Average Price
Clarity D
Wholesale Retail
SI1 $ 12,177 $ 14,534
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
SI1 $ 11,811 $ 14,123
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
SI1 $ 10,765 $ 13,455
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
SI1 $ 10,456 $ 12,890
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
SI1 $ 8,326 $ 1,0454
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

James Allen

Average 2 Carat Price Chart Index

Third Reference for Comparing Diamond Prices (Here)

2 Carat Round Cut - Best Petra Gems Estimate - Average Price
Clarity D
Wholesale Retail
SI1 $ 21,544 $ 26,353
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
SI1 $ 20,885 $ 25,448
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
SI1 $ 19,145 $ 23,855
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
SI1 $ 18,765 $ 22,435
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
SI1 $ 17,500 $ 21,132
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
SI1 $ 51,494 $ 59,219
VS2 $ 57,614 $ 66,257
VS1 $ 68,846 $ 79,173
VVS2 $ 89,118 $ 102,486
VVS1 $ 101,088 $ 116,251
IF $ 111,164 $ 127,839
FL $ 148,176 $ 170,402
Clarity E

Wholesale Retail
SI1 $ 49,097 $ 57,443
VS2 $ 57,377 $ 67,131
VS1 $ 60,588 $ 70,888
VVS2 $ 84,236 $ 98,557
VVS1 $ 91,796 $ 107,402
IF $ 103,784 $ 121,428
FL $ 113,965 $ 133,339
Clarity F

Wholesale Retail
SI1 $ 47,192 $ 55,215
VS2 $ 64,112 $ 75,012
VS1 $ 69,797 $ 81,662
VVS2 $ 79,214 $ 92,681
VVS1 $ 89,280 $ 104,458
IF $ 97,934 $ 114,583
FL $ 102,786 $ 120,260
Clarity G

Wholesale Retail
SI1 $ 46,764 $ 55,182
VS2 $ 62,568 $ 73,830
VS1 $ 65,160 $ 76,889
VVS2 $ 69,480 $ 81,986
VVS1 $ 73,764 $ 87,042
IF $ 78,836 $ 93,027
FL $ 82,121 $ 96,203
Clarity H

Wholesale Retail
SI1 $ 36,720 $ 43,330
VS2 $ 43,020 $ 50,764
VS1 $ 48,600 $ 57,348
VVS2 $ 50,760 $ 59,897
VVS1 $ 52,236 $ 61,638
IF $ 56,520 $ 66,694
FL $ 57,960 $ 68,393


Overview:

Calculating diamond prices is a highly complex process given the multitude of factors that are being considered while pricing one. In the absence of essential price information and technical insights, a buyer will most probably make a misinformed decision. Therefore, initial research and due diligence are highly critical before buying a diamond. As such, these charts are meant to transparently make the process of pricing a diamond less cumbersome.

Important Considerations:

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 assessed and calculated.

The above wholesale and retail price charts contain Petra Gems' best average estimates based on the data of leading diamond suppliers and online retailers.

These prices are for round brilliant cut diamonds. For tips on how to calculate the prices of fancy cut stones, see our estimations below.

These estimations are 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 2021. 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 diamond price chart:

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 for a fancy shape 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 global circulation also affect these prices.

Oval cut diamonds - should be 5-15% lower than the prices mentioned in the above index.

Princess cut diamonds - should be 17-26% lower than the prices mentioned in the above index.

Cushion cut diamonds - should be 22-30% lower than the prices mentioned in the above index.

Radiant cut diamonds - should be 20-27% lower than the prices mentioned in the above index.

Emerald cut diamonds - should be 19-27% lower than the prices mentioned in the above index.

Pear cut diamonds - should be 15-22% lower than the prices mentioned in the above index.

Marquise cut diamonds - should 23-32% lower than the prices mentioned in the above index.

Asscher cut diamonds - should be 21-31% lower than the prices mentioned in the above index.

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 importantly, why at times two identical diamonds do not have the same price tag. 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 versus locally.

The price of rough diamonds:

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

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:

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

Diamonds priced against the Rapaport’s Price List; and

Diamonds that are not priced against the Rapaport’s Price List.

The Rapaport Diamond Report of Polished Diamond:

The pricing of polished diamonds is based on a standard process within the industry. 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. 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 the 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, the RapNet Asking Price List is the real price that sellers ask for specific diamonds.

What is 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 for 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 to take advantage of the sweet spots that are within the pricing grid. Such assistance is important because it will help determine if making an upgrade from H color VS2 clarity to G color VS2 clarity is worth the extra cost. A move that is barely noticeable, but it might help you realize that it may or may not be worth the difference in price.

The effect of Rap prices:

The establishment of Rap prices regulates a diamond’s price manipulation— good news for diamond shoppers. But for a diamond dealer who would want to hyper-inflate diamond prices, Rap prices are unfavorable. Before Rap prices commoditized diamonds, for years the diamond industry marketed diamonds as gemstones of infinite value.

In the first decades of the introduction of Rap Prices, some dealers continued to sell diamonds above the Rap prices. However, with growing popularity, most retailers have now started to take Rap prices seriously.

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 sheet 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 will highlight key factors that affect a diamond’s price below.

As it should be evident by now, nearly everyone has heard about the 4Cs of diamond grading - carat, cut, color, and clarity. However, within these grades are subdivisions, judgment calls, and variations that the Rapaport diamond report does not list with its pricing data.

The 4Cs dictate how much a diamond will cost. The more colorless and flawless a diamond is, the more valuable it gets.

Save money on color and clarity if you have budget constraints as these factors are usually unnoticeable and/or unobservable with the naked eye. Most shoppers look for a diamond that is just eye-clean and colorless.

Here is what brings everything into perspective.

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 notice that the most rapid price-shift happens at a half-carat and whole-carat point. 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 budget 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 important to inspect the physical appearance of diamonds to determine tints, external flaws, and/or haziness.

Diamond buying is driven more by emotions than 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 10-20% more than a similar 0.99ct diamond simply because the prior can be called a full carat weight diamond.

Since diamond prices jump rapidly as the carats increase, most 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 important factor to consider and whatever compromises you make with the other factors are worth it.

Here is the reason why:

A diamond’s cut is what defines scintillation, fire, sparkle, and overall brilliance. An ideal cut can create a sparkle that can hide inclusions and mask undesirable colors, making an average diamond look like a top-quality grade.

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 a diamond from the top down, for example, round is a shape, not a cut.

The cut of a diamond determines how brilliant a diamond is and defines the angles/how light travels through each facet. Bad diamond cuts leak light, resulting in a dull diamond.

An ideal 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. Because cut is a higher priority in a diamond, 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 can also make a diamond appear large whereas a poor deep cut can just increase the carat weight.

Please also check our articles on excellent cut versus 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 higher 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 G 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.

G is a sure bet, but it is still okay to have a diamond with a color of H or I and an excellent cut rather than a fair grade cut diamond with the color F.

Clarity:

The clarity of a diamond describes the inclusions/flaws in a diamond. Flaws usually consist of 2 types:

Inclusions (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 all high clarity grades are eye clean.

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 would not be able to notice them.

A clarity of VS2 can be the best value. For instance, if you look at price differences between different clarity grades with the same carat, cut, and color diamond, 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 unappealing large black crystals or clouds in them.

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

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 a 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. 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 a stone sparkles. 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 many diamond grading labs globally, including GIA, AGS, EGL, and IGI, among others. Each one of them has their own grading criteria and standard.

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

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

However, diamonds certified by GIA and AGS can cost up to 10% more because it is more expensive to obtain certification from these companies. We strongly recommend 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 save as much as 50% compared to local jewelry stores. Low overhead cost is one of the several reasons for this disparity in pricing.

The 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 a round diamond.

An oval diamond is a modern diamond shape, with an elegant twist. They are the third most popular after the princess shape.

Other cuts like Pear, Asscher, Emerald, and Marquise are fancy cuts and cost less as compared to the round diamond shape.

Choosing a shape other than round can help you save as much as 20%-30%. Diverting that money towards other factors can be helpful.

Diamond fluorescence:

Diamond fluorescence is a soft glow—usually blue—that a diamond emits 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 appearance. However, because fluorescence is a negative factor, it can help save if you consider it in G-J colors. Blue fluorescence can counteract any yellowish hue that a lower-grade diamond may have. Therefore, it may improve the color appearance of diamonds with grade G or lower.

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 diamond appear more saturated, thus enhancing its value.

Generally, fluorescence decreases the value of D-F color grade diamonds, though it may not affect the price of I-J diamonds. Medium to strong blue fluorescence 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 grows, demand for luxury products has increased, and at the time, diamond mining has declined, resulting in higher diamond prices.

Over the past ten years, diamond prices have increased by approximately 32-33%, with 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 other products, the prices of polished diamonds are driven by various forces; they may change because of external factors such as changing economic conditions or internal factors such as profit margins/supply.

An Important note in light of COVID-19:

Many buyers are wondering if the Coronavirus pandemic has drastically affected diamond prices. While a small number of diamond dealers initially lowered their prices by 3-5%, but now prices have increased. If you intend to buy a stone, we recommend that you buy it during a downturn. Because of 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 diamond prices is critical for both investors and consumers. To avoid making a misinformed decision, doing initial due diligence, and obtaining accurate price information is essential. This article has attempted to make the process of pricing a diamond easier even though there is no single formula for pricing a diamond. Diamonds are natural gemstones, and as such, each one is unique and therefore should be priced based on its individual characteristics.