Diamond Guide
The 5th C: Cost
Next to the 4C's (Carat, Color, Clarity and Cut), for most people Cost is a very important (if not the most important) characteristic of a diamond. Different to the 4C's, cost is not a static value and changes over time (Diamonds usually steadily increase in value - simliar to Gold).
Because it's impossible to see quality differences when you compare some diamond gradings, in regards to jewelry it makes sense to not always strive for the highest quality, but instead for getting the best value for your budget.
Understanding the factors that influence diamond pricing is essential for making an informed decision. Knowing what criteria impact the price allows you to balance your budget with your personal preferences. While the variety of diamonds can initially seem overwhelming and the specifications numerous, the choices don't have to be perplexing. Remember, you're purchasing a valuable asset that can be treasured and passed down for generations.
CARAT WEIGHT & PRICE
Carat weight is a key determinant of a diamond's price. Generally, the heavier the diamond, the higher the cost. Price per carat is a useful metric for comparing similar diamonds. To find this, divide the cost of the stone by its carat weight. Larger diamonds are rarer and thus in higher demand, leading to significantly higher prices per carat.
For example, a one-carat diamond solitaire ring is typically more expensive than a ring composed of multiple smaller diamonds totaling one carat.
UNDERSIZED & OVERSIZED
Diamonds are often cut to standard carat weights, such as 0.70 or 1.00 carats. Diamonds just below these weight thresholds (e.g., 0.68 or 0.69 carats) are rare but offer great value since they cost less than diamonds rounded up to the nearest standard weight. Similarly, diamonds slightly above these thresholds are known as "oversized" and can also be cost-effective, providing excellent value for their weight without being rounded up.
CLARITY & PRICE
Inclusions in VS1 or higher clarity diamonds are only visible under magnification (see clarity page), choosing such a high grade and therefore paying the higher price is a matter of personal preference that goes beyond what the naked eye can perceive. However, larger diamonds with these top grades are rarer and command premium prices, often making them a better investment choice.
COLOR & PRICE
The difference between D and G color grades is barely visible to the naked eye, yet the price can vary by 20% to 40%.
H-graded diamonds strike a perfect balance between premium colorless and slightly tinted diamonds, offering excellent value. They exhibit no noticeable yellow or brown tint unless directly compared to higher-grade stones.
FLUORECENCE & PRICE
Fluorescence can impact diamond prices. Higher color grades (D-H) see a 10-30% premium for non-fluorescent stones. Conversely, lower color grades (I-N) with strong fluorescence can be slightly more expensive due to perceived masking of yellow tints.