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How are Diamonds Priced?

Posted on Sep 10, 2015 by Lisa Garber

There are several factors a professional takes into account when determining the value of a diamond. The standards set by the Gemological Institute of America set the bar for valuing diamonds in the United States. The four main factors taken into consideration when it comes to valuing a diamond are:

  • Carat
  • Cut
  • Color
  • Clarity

These are the most significant factors that determine how diamonds are priced. A professional and experienced appraiser can carefully inspect a diamond with the help of magnification to determine the quality.

In this article, you’ll learn a little more about how exactly each factor contributes to the value and appearance of a diamond.

Carat: Most people have heard the term “carat” used to describe diamonds, but aren’t aware of exactly what the term means. Essentially, it’s a unit of measuring a stone’s weight although most people believe it refers to the physical size of a diamond. The more it weighs, the higher it will be valued.

Cut: The cut grade takes into consideration a diamond’s symmetry and proportion. The person appraising the diamond will take a look the relationship of a stone’s size and shape as well as the angles. The rating will based on those factors as well as how the diamond interacts with light. The rating can range from poor all the way up to ideal.

Color: The color is also an important factor when it comes to determining how diamonds are priced. In this case, an alphabetical score will be assigned to the diamond. The color can be described as yellowish or brownish. The most valuable stones are those that as close to being colorless as possible.

Clarity: A diamond will get higher marks for clarity when it has few blemishes. The blemishes that are present in the stone, the lower the rank will be for clarity.

All the above mentioned criteria are taken into account when considering how a diamond will be priced. That’s why the more expensive stone may not always be the largest. 

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