| Pricing most products is quite easy. Determine | | | | price calculators available. These can be found on |
| how much it costs to make the item, how much | | | | the Internet, and many diamond dealers use |
| it costs to market that item, and then mark it up | | | | these as well. You must realize, however, that |
| by 15 - 30% or more. Simple, right? Well, pricing | | | | before you can accurately price a diamond, |
| diamonds isn't quite that simple. There are many | | | | without a Diamond Grade Report, you need to |
| factors that are considered when diamonds are | | | | know quite a bit about diamonds, such as |
| priced. Diamond prices are determined first by | | | | different cuts, clarity, color, and weight - and how |
| adding the cost of the rough diamond, the cost of | | | | each of those aspects adds to the value of a |
| cutting the diamond, and all other costs necessary | | | | diamond, or decreases the value of the diamond |
| to turn the rough diamond into a marketable | | | | as the case may be. The price per carat does not |
| diamond. Depending on the importance of the | | | | increase smoothly with increasing size. Instead, |
| diamond, an independent company may be called | | | | there are sharp jumps around milestone carat |
| in to certify the grade of the diamond based on | | | | weights, as demand is much higher for diamonds |
| color, cut, clarity, and weight. At this point, the | | | | weighing just more than a milestone than for |
| diamond becomes more expensive each time it | | | | those weighing just less. As an example, a 0.95 |
| changes hands, until it finally reaches a retailer, | | | | carat diamond may have a significantly lower price |
| where the price is raised a bit more. Before | | | | per carat than a comparable 1.05 carat diamond, |
| reaching the retailer, however, the diamond must | | | | because of differences in demand. Carat size |
| travel from the mine, to the cutter and polisher, | | | | Cost per carat (US$) Total cost (US$) 0.5 carat |
| to the independent grading company, and then to | | | | (50 points) 3,000 1,500 1.0 carat 6,500 6,500 1.5 |
| the Primary market. Once it has reached the | | | | carats 8,500 12,750 2.0 carats 13,000 26,000 3.0 |
| primary market, it will be purchased by diamond | | | | carats 17,000 51,000 5.0 carats 23,000 115,000 A |
| dealers and wholesalers, and from there it will be | | | | weekly price list published by Rapaport of New |
| sold to retailers. As you can see, the earlier you | | | | York, of diamond prices per carat, for different |
| can purchase a diamond in the process, the lower | | | | diamond cuts, clarity and weights, is currently |
| the cost of the diamond will be - but not the | | | | considered the de-facto retail price baseline. |
| value. The value is based on what the diamond will | | | | Jewelers often trade diamonds at negotiated |
| sell for in the market place - through a retailer. If | | | | discounts off the Rapaport price (e.g., "R -3%"). |
| you own a diamond, and you have no idea how | | | | Again, you will be better off if you get a Diamond |
| much it is worth, you can have it appraised, but | | | | Grading Report on the diamond, and use that |
| the appraisal may not be accurate. You will be | | | | information to look up the price in one of the |
| better off obtaining a certificate through GIA - | | | | guides that the diamond cutting industry uses. This |
| Gemological Institute of America. With the | | | | will give you the most accurate value of the |
| information on this certificate, you can use a | | | | diamond in your possession, or of the diamond |
| cutter's guide to accurately determine what your | | | | you are considering purchasing. |
| diamond is worth. There are also many diamond | | | | |