What determines the price and value of diamonds?

What determines the price and value of diamonds?

 

Everyone knows that diamonds are precious stones but assessing the correct value of a diamond is a matter for an expert. The value of a diamond, along with the economic context and the asking price of the jeweller where you buy the diamond, will ultimately determine the price of your diamond. The price of diamonds is expressed in US dollars per carat. A 0.5 carat diamond for example is priced at $1,400 per carat. The price for this diamond is then $1,400*0.5, so $700. In this article, we will look at the factors that determine the price and value of diamonds.

Check out the prices of diamonds at BNT Diamonds

   

What impact does the economy have on the price of diamonds?

The price of diamonds is determined, among other things, by the world’s economy. Most importantly, the price is determined by supply and demand. In countries such as China, India, Brazil and the Middle East in general, the demand for diamonds has increased exponentially in recent years. This indicates that the price of diamonds is increasing. However, crisis situations and financially difficult conditions such as the corona virus crisis – can temporarily weaken the price increase of diamonds. Over time, the diamond price recovers, because diamonds are an intrinsically profitable product that becomes increasingly scarce over the years. In China, for example, the demand for cut diamonds has recently increased again.

Find out why diamonds are always a smart investment

Why is weight important for the price and value of a diamond?

The value and price of diamonds per carat increase at a higher weight class. For example, a brilliant 3 carat costs five times as much as a 1-carat stone. Diamond prices increase exponentially as the weight increases, not only because of the increased weight, but also because of the higher price per carat. A 0.99 carat diamond is worth only 1% more than a comparable diamond of 0.98 carats. However, the value and price of a 1 carat diamond is about 20% higher than a comparable 0.99 carat diamond. These prices apply to perfectly cut diamonds. A small difference in weight can have a lot of influence on the price and value of diamonds.

What role does the cut form play?

Due to the 20% price increase from a 0.99 carat diamond to a 1 carat diamond, it makes sense that a diamond cutter will do everything to achieve this weight of 1 carat. A diamond may therefore seem very cheap, but if the stone is poorly cut you still pay too much.

A perfectly cut brilliant of 1 carat has a diameter of 6.5 mm. A 1 carat brilliant can also measure 6 mm. For the weight, this stone then does not have the right diameter, and will therefore not shine optimally. If you choose a 6 mm stone in this case, it cannot weigh more than 0.8 carats. Apart from the lower weight, this brilliant also falls into a cheaper weight category. The price of the diamond will therefore be less, and the 0.8 carat diamond sparkles more beautifully than a similarly large brilliant of 1 carat in diameter.


By buying and selling directly, without intermediaries, BNT Diamonds offers the best value for money in diamonds. Are you considering investing in diamonds? Please contact us for objective advice..

Author: BNT Diamonds
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

Related

Most popular