Cost of Diamonds - Understand the 4 C's

Pricing a diamond for an engagement ring can be a nervous and daunting task for a

layman as it is both a skill and a trade but with a little insight the doubts can easily be alleviated.

When considering the cost of diamonds, the expertise is based on what is known as the 4 C's, namely CUT, CARAT, CLARITY and COLOUR.

These 4 C's are applied to the Rapaport Price List which is published to its members on a weekly basis.

I will endeavour to reveal these 4 C's to you in order to explain the pricing strategies that determine the cost of diamonds as this will lead you to make a more informed purchasing decision.

CUT actually refers to the shape of the diamond and is the only attribute determined by mankind. The shape will greatly affect the cost of diamonds as Round shapes are more expensive than Fancy shapes, such as Pear, Oval, Marquise, Heart, Cushion, Emerald, Princess and Radiant. This pricing strategy is purely based upon demand being greater for Round shapes than for Fancy shapes. Bear in mind that the symmetry of the diamond as well as the finish (the quality of the cutting work) will also play a determining factor in the price evaluation of the shape, thus a well polished stone will always fetch a premium and conversely poor workmanship will demand a discount.

CARAT is a measure of weight. There are 100 decimal points that make up 1 carat, and 1 carat = 0.2 gram or inversely 1 gram = 5 carats. The concept of pricing a diamond according to its carat (weight) lies in the fact that the bigger the stone, the rarer it is and so the price per carat increases exponentially with its weight, thus making a 2 carat stone more valuable than 2 stones of 1carat.

CLARITY refers to the inclusions or flaws within the diamond. These flaws can be anything like white spots, black spots, cracks, bubbles or even "feather" like fractures. The number, the size as well as the location of these flaws will greatly influence the cost of diamonds.These flaws are graded according to the Rapaport Price List from IF (internally flawless) to I3 (heavy inclusions).The cleaner the diamond, the higher the price, thus making a flawless diamond very valuable as it is extremely rare.

COLOUR is the last attribute that will also determine the cost of diamonds and is ranked by letters in descending order from D (colourless) to M (yellow), making a colourless stone more valuable than a yellow tinted stone. Diamonds actually come in all colours of the spectrum, the most commercial ranging between the above letters (D-M) and the rarest being green, blue, and red. Black and brown diamonds are used for industrial purposes as these colours have no value in the Gem industry.

Cost of Diamonds - Understand the 4 C's

By: Davolfan

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