The diamond business is a global industry where prices all around the world are almost the same. Since the diamond industry is international, one can not simply affect the prices, or give different numbers. However, due to the fact that the US has the largest diamond market in the world, purchasing diamond rings from the US would be more favorable since there are way too many sellers. In other countries, there are not many options to buy diamonds, and therefore, you have to stick to the prices given by a few companies.
The larger the market is, the more competitive it will be. And the competition may cause prices to decline. That is why, if you buy your diamond ring from the US, there is a chance that you will pay less money. Thus, we can say that diamond rings are cheaper in America, even if the difference would be very slight. Now, let us look at how the diamond is priced in the first place.
How Is the Diamond Price Calculated?
The value of the diamond depends on how rare it is found and its price depends on the four properties. Even they seem like the same by looking with the naked eye, no diamond can be the same as another. The reason why the price of two diamonds with the same carat weight is different varies according to the 4C feature and their composition. I will give you a brief overview of what is the 4C feature, and more information about the diamond pricing. The cut is perhaps the most important of the 4C features because the glamorous glow of the diamond becomes apparent thanks to the quality of the cut. The cut feature is a privilege created by the human hand on diamonds while others originate from nature. The angled surface that reflects the light, ie the facet, is a feature that reveals the brightness of a good cut diamond with correct proportions. It is important not to confuse the cutting of the diamond, which is a technical subject requiring information, with the shape of the diamond.
The round cut is the most popular among the known cuts. Other features include; Rectangular diamond cut ie emerald cut, drop cut, pointed cut at both ends, square round-cut, ie the princess cut, heart cut, and oval cut. After 25 years of research on people buying diamonds, diamond expert Saul Spero categorizes diamond cuts preferences of women according to the characters of women. For example, round cut highlights family, calmness (It is the most preferred cut of diamond which reflects the light in the best way possible), oval cut features opportunities, creativeness, heart cut means sensitive, emotional. Four Corners appeal to disciplined, honest and conservative people where the marquise cut is for more extrovert women, businesswomen with creative and aggressive features.
When it comes to Color, people can enjoy different shades. Therefore, the color characteristic is the most personal feature among 4Cs. The colors of the stones are composed of various shades of white. Diamonds are evaluated by how close they are to the colorless. Rare and white ones are D, E, F, and G. The group H and I are white, and most preferred ones thanks to their price/performance ratios. J and below have the tones of yellow. These color groups can go up to Z. On the other hand, clarity is the feature of the diamond that increases the price the most, due to the fact that the stone should be spotless in order to shine. The prices vary depending on the stain and veins between two stones of the same size. In the stores selling precious stones, there are explanations related to the stones. For example, Flawless means completely spotless and it is the most expensive diamond form. The lower the quality of the diamond, the lower the price.
The clarity of the diamond is determined by looking at the so-called “fingerprints of nature”. Almost all diamonds have small traces of the carbon crystal that forms the diamond. However, since most of these spots are microscopic, they are not visible to the naked eye. They appear only under a very strong lens. The less the stains of the diamond, the more valuable it is because the stone is so rare. As the last point, the weight measurement unit of a diamond is called carat and is calculated by dividing one carat by 100 equal points. In addition, half a carat is worth 50 points and is expressed as 0.50 ct.
The price of the two diamonds with the same carat weight may vary due to the different composition of clarity, color and cut characteristics. For example, the price of two Engagement Diamond Rings with the same values in the Rapaport list will not be the same. The reason for this is the clarity, cut, color and carat values of the stones are different from each other. Prices will also be different for this reason. In addition to these conditions, the company you will purchase the diamond from is also very important. The pricing policy of the company you are going to buy and the special offers it provides are also important points to be considered.
Because diamond is a very precious stone, even very small values gain importance in the price calculation. A common system has been tried to be developed for calculating the price of diamonds that even very small pieces of diamonds worth millions of dollars and a system emerged in the 1980s has been started to be used in this direction. Today, most of the companies that sell diamonds, try to make pricing using this diamond price list known as Rapaport. This diamond price calculation system is very special and not accessible to everyone. Duplication is prohibited even through membership. In this case, the diamond has become more mysterious and valuable. To calculate the diamond prices, only the suppliers who are specialized in diamonds can access the Rapaport price list.
There is a table in the diamond price calculation chart called Rapaport and the values of the diamond according to different characteristics are included in this table. Among these features, the selection is made according to the properties of the diamond to be purchased, and the corresponding price coefficient is taken as a basis for price calculation. This price coefficient is then multiplied by the carat of the diamond and the fixed unit of 100, to find the price of the diamond.
In addition, there are many other factors in calculating the price of the diamond. Different features such as cutting, symmetry, workmanship, polish, and fluorescence of the stone determine the price of the diamond. In line with this information, questions such as “how do 1 gram of diamond cost?” or “how many dollars for 1 carat diamond?” are irrelevant. Because the price of the diamond of the same size can vary greatly due to many variables. In addition, the pricing policy of the firm you will buy the diamond will have an effect on the product price.
Nowadays, although a diamond is chosen which is pleasing to the eye by going to the nearest jeweler, the mentioned features are the points to be considered in order to get a good diamond. A diamond of sufficient quality and affordability will always maintain its value.
Diamond Prices: 4C Feature
The price of a diamond is determined by 4 properties. The 4C properties mean 4 distinct characteristics, namely cut, color, clarity and carat weight, which are used to classify diamonds. These features should be considered when buying your diamond. The brightness and beauty of the diamond depend on these 4 factors. As long as the diamond is not accidentally damaged, it does not lose anything from 4C.
- Cut
Diamond cutting is a feature related to the symmetry and dimensions of the stone. The cut determines the ability of the diamond to shine and refract the light. Even if the stone has a flawless color and clarity, it is a feature that should be given priority because the diamond will demonstrate a matte appearance with a bad cut. Because, the better the cut, the better the diamond reflects the light. The light that enters from one surface of the cut diamond at the right proportions is reflected from the other surface and diffuses and spreads from the upper part called “crown”. If the cut is too deep, some of the light escapes from the lower part of the diamond called “cone”. The fact that the cut is not deep enough causes the light to escape from the cone and causes the diamond not to shine sufficiently.
- Carat
Carat is related to the weight of the diamond. Carat is one-fifth of a gram. One carat equals 200 milligrams. One carat represents 100 points and 0.25 carats mean 25 points. Size is an important factor in the valuation of diamonds, but the prices may differ very much depending on the quality of two different diamonds of equal size. The fact that two different diamonds have equal carat weight does not require that they be of the same price.
- Color
Diamonds are formed under extreme heat and pressure, and during this formation, the particles belonging to the other elements can also be incorporated into the diamonds’ atomic structure, resulting in a variety of colors. Diamond progresses from dark yellow to vivid, bright white. Diamonds are classified according to how colorless they are. The rarest and whitest ones are D, E, F, G, but the majority of the diamonds are among the H-L colors. The color M and below have a visible yellowish tint. There are also diamonds in very rare colors. These are rare stones with distinctive colors such as pink, blue, yellow and red.
- Clarity
Almost all diamonds contain “very small pure carbon particles” as building blocks. These are particles that make each diamond a rare unique stone and are called “inclusion”. Clarity distinguishes each diamond from the other. There are no two diamonds in the same place that may have completely similar inclusions. Major laboratories such as GIA and HRD also have five factors used to determine the clarity of a diamond.
Detailed Information About Diamond Prices and Their Variability
As a result of the increase in the institutions producing and selling diamonds, the competition has also affected the markets. Diamond prices, which are not only in the hands of the manufacturer, also vary according to the brand. I wanted to inform you of the reasons for this. The diamond price depends on many factors, of course. “Why are the prices so different and according to what?” has become a question that has been recently asked about the diamond prices. People want to learn what causes price differences. In fact, the answer to this is not limited to a single item. It is better to go to the main source of this business and look at the whole world.
The Effect of FED and WFDB on Prices
The FED and the WFDB should be introduced briefly. The Federal Reserve Bank (FED) was established in 1913 in the US and aims to maintain the monetary stability of the country. Although it has duties like the central banks of each country, America holds the world stock market because of its power. It is well-known rhetoric that “the decision of the FED made an impact on the dollar and gold exchange rates”. FED is a serious factor in the economy in all countries of the world.
In addition, there is a diamond exchange in the world. It is also called the WFDB (World Federation of Diamond Bourses). The world diamond, dollar and gold exchange market is shaped within the framework of the studies and decisions of these two important institutions. In this case, diamond prices are traded at the exchange rate of the dollar and thus the exchange rate fluctuations are reflected in the prices of each country in its own currency.
Diamond Pricing
What I am simply trying to explain above only plays a role in determining the main prices. However, in precious metals, not only the stock market but also other factors play a major role. As for the part that interests us: I always say that a diamond product is the processed form of the raw diamond. Therefore, in the variability of the prices of diamonds, as we mentioned in other articles, the diamond 4C feature comes into play. Cut, Color (Carat), Clarity (Clarity). Prices may vary according to these 4 features. Let’s compare two 0.30 carat rings: Let’s say when a 0.30 carat H color VS1 luminous diamond with one diamond ring is priced according to 4C specifications, it is $ 2.178. But another 0.30-carat diamond engagement ring is sold at a higher price due to other features (such as color, clarity).
Especially if it has an internationally valid certificate such as GIA or HRD, the price rises a bit higher. When you look at the features of the GIA certified 0.30 carat G color product in VS2 Clarity, they have nothing in common except they are 0.30 carats. All these features are factors that affect the price. But the diamond buying habits in the world are mostly based on the importance given to carat weight.
Company or Brand Difference
In line with the increasing competition in the world in recent years, brand or company differences have started to emerge in the prices of diamond products. This confuses the consumer. The biggest mistake made when buying diamonds is immediately turning to the most known brands. However, there are companies that are not investing in stores or brands and are trying to provide more affordable products to the customer. The brand name itself contributes to the pricing. That is why the diamonds you buy from famous brands will be more expensive.
Such small firms use their investments for product diversity and quality. In addition, they do not advertise on high-paid channels such as TVs and do not add the cost of the advertisements on the product they sell. This is the reason why the products of such companies are affordable. Here, the question comes to mind “How do we get diamonds from a place we do not know?” First of all, I recommend that you search for the company’s history. After that, the review including the customer feedbacks, what was written about that company, satisfied customers, etc. is important. If the diamond you will buy is 0.30 carats or more, independent institutions examine and certify the product.
How the Prices of Solitaire Rings Are Determined?
Diamond products are precious stones that are finalized after processing and passing certain process stages of raw diamonds which are pure in nature. Only a small amount of diamond mines exposed to the harsh conditions of natural conditions are processed and cut. On average, more than half of the original weight of each diamond stone is lost during the cutting and polishing process. In the cutting and processing processes, only about 5% of the solitaire diamonds turned into jewels are heavier than one carat.
Diamond cutting is a labor-intensive process that requires craftsmanship. Diamond cutting requires imagination and creativity. These processes, which are the work of patience and skill, are the only processes that can be performed by the man on diamonds. Diamond cut should accurately reflect dazzling sparkle, mastery, and brightness. The light entering the surface of the diamonds cut with the correct proportions is reflected from the other surface.
Size, Cutting, Labor, and Effort
The prices of the diamonds vary according to certain details. The size and pattern of the diamonds, each of which is different from each other and has its own characteristics, may seem the same to the human eye, but there may be large price differences between them. The value of the diamond may vary depending on how rare and difficult to find it is in nature. In addition, the labor and effort used for turning raw diamonds into diamond products are among the most important factors that determine the prices of solitaire diamonds.
Diamonds that adorn many different pieces of jewelry such as rings, necklaces, and earrings are precious stones to which women are connected with a great passion. The prices of precious stones are determined according to the above criteria. Nowadays, it is possible for every person to find a diamond suitable for his budget. However, before you buy a diamond you need to do detailed research.
Main Factors Affecting Diamond Prices
Before using a diamond product, the size and quality of the stone should be decisive. Apart from the cuts of diamonds, it is necessary to know that there are price differences between marquise, pear, oval, princess and heart cut diamonds. The diamond models sold in different sizes vary between 0.03 carats and 6-8 large carats. Carat values of diamond rings sold in the world vary between 0.30 and 1.
Another important factor is the 6-stage grading of the clarity level from flawless to flawed. For example, diamonds can be sold in the same price range with 2-3 times larger diamond in carats in terms of clarity. In short, the carat size and clarity of the stone are very important in terms of price. Another important element of diamond prices is the color of the stone used. The most valuable diamonds with different prices are often colorless. This is because their brightness is very high and they reflect the light in the best way.
The gram weight of the stone, the presence of foreign substances in the stone and whether the stone is colorless or yellowish should be checked. In a nutshell, stone weight, color, and clarity are the points that should be considered when determining the price of diamonds. In fact, it is important to mention that there are several other factors along with these three factors that have importance on the price of diamonds. For example, the price of a 0.5-carat solitaire ring from an online shopping site can be 30 percent less than on any other site. The reason for this is that the clarity ratio and color value of the diamond differs.
All in all, if you are living in a country other than the USA, there won’t be any significant difference in prices when buying diamonds. However, if you live in the US, then you are a little bit luckier if you decide to buy a diamond product.
