Know Your Diamond Prices or How to Avoid Getting Ripped Off
If you’ve spent any time shopping for a diamond, you know that there is great variation in the price. Many people assume that the size of a stone is the biggest factor in how much it costs, but there’s a lot more to it than that. In fact, size is just one part of how the price is calculated. If you’re in the market for a diamond, it’s valuable to understand how diamonds are priced so that you can be sure you’re getting what you’re paying for. The PriceScope diamond price calculator is one way of getting an idea of what your diamond might be worth.
The 4 Cs
There are four basic factors that influence how much a diamond costs, called the 4 Cs. These are cut, color, clarity and carat weight. The cut of diamond refers to the shape and proportions of the stone. Examples include princess, square and circle cuts. Color influences price based on how much of a yellow or brown tint a diamond has. In general, colorless diamonds tend to hold more value than those with a bit of color to them. Clarity of a diamond refers to whether there are any flaws, both inside or outside the diamond. Finally, carat weight is simply the size of the diamond, which is measured by weight, not by visible size. A heavier, colorless diamond without any blemishes and with a brilliant cut will be the most valuable.
Beyond the 4 Cs, there are some other things that experts from the Gemological Institute of America and the American Gemological Society use when they determine the price of a diamond. Polish refers to the quality of the surface of the stone, with a higher polish increasing the value of the diamond. A diamond’s symmetry also raises or lowers the value. The diamond’s shape also plays a role with some cuts being more popular and some being more difficult to achieve, raising the price of the stone. Finally, the fluorescence of the diamond refers to the degree of glow it produces under an ultraviolet light source.
How Much is a Diamond Worth?
If you’re shopping for a new diamond, the above information is important to keep in mind. What if you’re trying to sell a diamond? Once purchased, diamonds tend to come down in value so you won’t get as much for it as you paid for it, in most cases. In general, a “used” diamond is probably worth about 20 to 50 percent of the price you paid when you bought it new. For that reason, a diamond won’t make a good investment since they won’t appreciate in value. However, in some cases, fancy colored diamonds may be the exception. Since they are so rare, they hold more value and could get you a decent return on the original investment if someone is looking for a specific color. That includes red, pink, blue and green diamonds.
Knowing how a diamond is priced is important if you’re shopping for a stone because it helps ensure that you don’t overpay and that you get the most bang for your buck.