Most everyday items are super easy to put a price on. These items don’t have many complexities to worry about that could drastically affect the price. Diamonds, on the other hand, are not easy to price. To diamond beginners, it may just be “more carats, more expensive,” but any informed individual knows that there is a lot more to diamonds that goes beyond just the carat. There are a multitude of factors that diamond buyers and sellers must be aware of before being able to price a diamond well.
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Table of Contents
Diamonds Aren’t Only Priced by the Carat!
A common misconception for diamonds is that they are priced solely based on the amount of carats. This is completely false! Carat is only ONE of the main factors into grading and pricing a diamond and is only ONE of the FOUR C’s of diamonds. If you want more information on the 4 C’s of diamonds, be sure to check out our 4 C’s of diamonds post! A combination of these 4 C’s can greatly affect the price of a diamond.
Furthermore, a high quality diamond is almost always going to go through many qualifications and certifications to show the authenticity and grade of the diamond. If a diamond is priced right and relatively high quality, they will usually fall under Gemological Institute of America’s (GIA) Certifications. The GIA Certification is one of the best ways to ensure that the diamond you are buying is real and graded properly!
As you can see, diamonds are not just priced by the carat. There is a lot more to diamonds than just a weight. In this post, we barely scratch the surface of the diamond pricing factors! There are still way more factors that you may run into. If you would like to learn more about diamond pricing, look at our “Diamond Pricing Guide!”
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• Their mission is to offer consumers online the highest quality diamonds & largest selection at the best price.
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Uncut Diamonds Effect on Pricing
Most diamonds you see are polished and cut to be brilliant and iconic pieces of jewelry, but they all start off as an uncut diamonds with many roughs. If you want to learn more about uncut diamonds, view our “Uncut Diamonds Post!” These diamonds are much cheaper than a cut diamond, but will not even look close to a cut diamond. But their pricing is still important for you to know because they are regulated by cartels that control the flow of diamonds. These cartels determine how diamonds are marketed and which diamond retailers get their supply of uncut diamonds to turn into beautiful cut diamonds.
How Cut Diamonds are Priced
Diamonds are not only priced by the diamond retailer themselves. They are also priced by the Rapaport Diamond Report. This report prices diamonds based on current market conditions and are eventually published to the public. The Rapaport diamond report is the official way diamonds are priced, but their process is mainly involved with the aforementioned 4 C’s of Diamonds.
After the diamonds are graded by the Rapaport Diamond Report, they are sent off to different diamond retailers. These diamond retailers are then responsible for pricing the diamonds based off the price the report gave them and selling them at a price they believe will be fair and profitable for their company.
|Where Is The Best Place To Buy An Engagement Ring?|
|Best Place To Buy Online||James Allen|
|Biggest Selection||Blue Nile|
|Best Diamond Cuts||Whiteflash|
Other Ways Cut Diamonds are Priced
Rapaport Diamond Reports aren’t the only way to price diamonds. Another company in the diamond pricing scheme is IDEX. Rapaport actually does not report how they price the diamonds, but IDEX does. Although IDEX is not as popular, they are definitely starting to gain a reputation among diamond retailers and customers!
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While it may sometimes feel like diamonds are priced based only off carat, this feeling is completely wrong! Diamonds are much more complex than just a weight. They go through intense processes to be graded and priced fairly. Firstly, they are filtered through different cartels that then sell their uncut diamonds to many companies that cut diamonds. After diamonds are cut, they are then graded by companies like Rapaport and IDEX. Once they are graded for a baseline price, they are given to diamond retailers to price them based on their own services and how valuable they believe the diamond is worth. If you’re interested in great diamond retailers, I urge you to check out our list of Blue Nile Diamond Promotions and our Review on Whiteflash!