The Truth About Diamond Prices Revealed!

When navigating the world of diamond prices, it’s essential to understand how factors like cut, clarity, color, and carat weight come together to determine the true value of each stone.

Navigate This Guide:

• Introduction
• 7 Practical Tips for Buying a Diamond Engagement Ring 
• The Factors Influencing Diamond Value
• Market Trends and Price Fluctuations
• Other Influences on Diamond Price
• Analyzing Long-Term Value Trends
• How to Evaluate a Diamond’s Worth
• Conclusion
• 8 FAQs

Introduction

Making the decision to propose is not something any of us come to lightly. Whether you’re the pragmatist or the dreamer – methodical and cautious or more inclined to go with the flow – it takes the same combination of rationality and romanticism to know that this is the time to start making those life-changing plans.

At first, the market value of a diamond is probably far from your mind. You know you’re going to need a ring – that much is a given – and that it’s not going to be a minor expense, but, in that initial wave of excitement (or, perhaps, vertigo), it’s pretty unlikely you’ll jump straight into the numbers game.

But, by now – and judging by the fact that you are here reading this article – we’re willing to bet that you have already landed upon that age-old question, ‘How much does a diamond cost?’

Funnily enough, and for reasons we’ll go into below, asking this is pretty much the equivalent of asking, ‘How long is a piece of string?’ There are, after all, so many variables – so many reasons why the value of the diamond you are buying is driven up or down, and, for that reason, just as many ways to ensure that your investment falls comfortably within your budget.

So, from preparing your wallet to making sure you don’t get ripped off, here is everything you need to know about diamonds, how much they’re worth, and what you should (and shouldn’t) pay for.

Before we dive deeper into the specifics, here are some practical tips to help guide your decision-making process:

7 Practical Tips for Buying a Diamond Engagement Ring 

When purchasing a diamond engagement ring, understanding the nuances of diamond pricing is crucial to ensure you make a well-informed decision. Here are some essential tips to consider: 

• Tip 1: Understand the 4Cs: Cut, Color, Clarity, and Carat Cut: A well-cut diamond maximizes light reflection, enhancing its brilliance. Prioritize cut quality as it greatly affects a diamond’s sparkle. Color: Look for a diamond with minimal color, as colorless diamonds are rare and more valuable. However, slight color differences can significantly impact the price. Clarity: Choose a diamond with the least visible inclusions or blemishes. Opt for an eye-clean diamond where inclusions aren’t visible to the naked eye, which can be more affordable than a flawless diamond. Carat: Higher carat weight increases the price, but consider opting for a slightly under-sized diamond (e.g., 0.95 carat instead of 1 carat) to find better value. 
• Tip 2: Compare Diamond Shapes and Prices: Different shapes have varying price points. For example, round-cut diamonds are typically more expensive than other shapes like oval or cushion-cut due to higher demand and cutting precision. Exploring different shapes can lead to substantial savings. 
• Tip 3: Examine Diamond Certification and Grading Reports: Always check for a diamond’s certification from reputable laboratories like GIA or AGS. These reports provide an unbiased assessment of the diamond’s 4Cs, ensuring you get what you pay for.
• Tip 4: Opt for Lower Color and Clarity Grades Without Compromising Beauty: Consider diamonds in the near-colorless range (G-I) and slightly included (SI) clarity grades. These diamonds can offer significant savings and still look beautiful to the untrained eye. 
• Tip 5: Study the Diamond’s Proportions and Symmetry: Beyond the 4Cs, examine a diamond’s proportions and symmetry, as they impact its overall appearance and brilliance. Good symmetry and proportion ensure the diamond reflects light efficiently. 
• Tip 6: Be Aware of Fluorescence: Diamonds with strong to very strong fluorescence are usually priced much lower and up to 95% lower. In some cases, strong fluorescence can make look hazy and milky and prevent the diamond to sparkle with brilliance. 
• Tip 7: Consider the Setting Style and Metal The ring’s setting and metal type can influence the overall cost. A simple setting can make the diamond stand out more and reduce costs. Additionally, choosing white gold over platinum can also result in savings.

Now that you’ve got these practical tips, use Jeweler AI below to find the perfect engagement ring that suits your style and budget:

The Factors Influencing Diamond Value

Many, many separate factors contribute to a diamond’s value. Two diamonds of the exact same carat weight could differ by thousands of dollars, while two diamonds of totally different weights could be valued exactly the same.

Diamonds are naturally occurring gemstones, which means that every single one taken from the ground has been created at random by natural forces. As a result, every single one is totally unique, with its own shape, size, color and identifying marks (otherwise known as inclusions).

In many cases, these unique features are only identifiable under a microscope – while, other times, a diamond will be drawn from the earth with a deep, purple hue, or an astoundingly high carat weight, a high number of inclusions – or, of course, none at all.

All of these factors – and more besides – contribute to the value a diamond is given when it is put on the market.

At this stage, the variability of diamond prices can sound like an unwelcome complication. It would be easier, after all, to know for sure whether your budget can get you a 1 carat diamond, a 2.5 carat diamond, or a 3 carat diamond engagement ring, for instance.

But, when the answer to the question ‘What do diamonds cost?’ is open-ended, the benefit is that you can work on tailoring your criteria to suit not only your budget but your tastes, too.

Got your heart set on a 2 carat diamond but working to a tighter budget? That’s fine once you learn how to adjust your search parameters without sacrificing the beauty of your diamond.

It’s all about negotiating with your own expectations until you find something that looks ‘perfect’, without the dauntingly high price tag.

Carat Weight and Price Correlation

Price increases exponentially alongside carat weight, meaning that a 2 carat diamond will not simply equal twice the value of a comparable 1 carat diamond, and so forth…

There’s no denying that bigger diamonds have a certain prestige about them. While a more modest 1 carat diamond represents the ‘average’ within America – and is perfectly capable of creating an impressive, breathtaking ring – there are plenty of people looking to ‘drop jaws’ by investing more into a substantially larger and heavier diamond.

Couple this with the fact that bigger diamonds are less common. Don’t get us wrong, you’re not going to face a struggle to find a larger diamond, but it’s a far more common occurrence for a diamond cutter to encounter a rough stone that can yield a diamond of < 1.00 carats (or just over) than it is for them to find a rough stone than can yield a diamond of, say, > 2.00 carats.

Consider how much discrepancy exists between the usual price ranges for 1, 1.5, 2 and 3 carat Round Brilliant diamonds:

Carat Weight	Average Price Range
1.00	$2,500 – $20,000
1.50	$5,000 – $36,000
2.00	$8,500 – $58,000
3.00	$21,000 – $100,000+

The same holds true for other diamond shapes – although their prices will be different (more on that below).

Prices at the low end are reserved for diamonds with considerably lower quality – i.e., diamonds with visible inclusions or color, or a poor cut – so don’t make the mistake of thinking that it’s possible to get a worthwhile diamond at the lowest price shown here.

Clarity Grade and its Impact on Value

Two different grades can affect the price of a diamond by thousands of dollars – if not tens of thousands of dollars – due to the prestige of flawless and near-flawless diamonds.

We mentioned at the beginning of the article how most diamonds that are taken from the ground feature inclusions. These are internal flaws, like cavities or feathers, that can be very, very small, or glaringly obvious when you look at the diamond.  

The clarity grades put forth by the GIA run as follows:

FL	IF	VVS1 & VVS2	VS1 & VS2	SI1 & SI2	I1 & I2
Flawless	Internally Flawless	Very, Very Slight Inclusions 1 & 2	Very Slight Inclusions 1 & 2	Slight Inclusions 1 & 2	Inclusions 1 & 2

The GIA clarity scale

Any diamond below ‘IF’ on the scale IS, by definition, flawed (included), and these represent the overwhelming majority of diamonds on the market today. In turn, this means that FL and IF graded diamonds are given a staggeringly high price on the market. A 1 carat IF graded diamond will cost between to $15,000 – $20,000 (depending on color and cut), while a 1 carat VS1 graded diamond will cost substantially less – typically between $3,000 – $6,000.

In the 1 carat range, a massive selection of 1 carat, eye clean diamonds are available – and often as far down the scale as SI1 and SI2.

Let’s say you’re looking at two 1 carat Round Brilliant diamonds featuring an I color grade. One is VVS1, and the other SI2 – meaning they’re around $2,300 apart in price. They’re both ‘eye clean’, meaning that any distinguishing features are only visible under a microscope, and you’re finding it impossible to tell them apart.

Which one do you go for?

Hopefully, you’ll pick the SI2 diamond – and save yourself the premium cost attached to diamonds that are microscopically better than the rest.

How Color Impacts Diamond Price

It depends on the size of the diamond – and the difference between one color grade and the other – but, in general, a single color grade can impact a diamond’s overall value by around 10%.

It’s very common for a diamond to be tainted by the presence of trace amounts of nitrogen, which cause a yellow hue that varies from practically invisible (unless under strong magnification) to very, very noticeable – and, unfortunately, unattractive.

It can make a diamond appear antiquated and discolored – although, in actual fact, however old a diamond is, it does not change color.

Nevertheless, it doesn’t look good – and it’s not something you want to pay big money for.

In a 1 carat Round Brilliant of VS2 clarity, the difference between a color grade of G and a color grade of H could amount to around $1,000. The difference will be more significant between two concurrent grades that fall within different color categories:

Colorless	Near Colorless	Faint	Very Light	Light
D, E, F	G, H, I, J,	K, L, M	N, O, P, Q, R,	S, T, U, V, W, X, Y, Z

The GIA color scale

In other words, the difference between F and G is likely to be more significant than, say, the difference between I and J, since F falls within the Colorless category and G within the Near Colorless, whereas the other two grades both fall within that same category.

There is, after all, a prestige attached to diamonds that are considered Colorless – D, E, and F. For this reason, we would steer readers away from these grades, in spite of the guarantee of quality, just as confidently as we would steer them away from any diamond with a Faint, Very Light or Light grade, in spite of the savings.

Cut Quality and its Bearing on Diamond Value

Skillfully cut diamonds sparkle more, and they look better and more symmetrical. It takes more time and expertise to create a symmetrical and well-polished diamond, so this will translate to a more expensive diamond.

For Round Brilliant diamonds, cut is graded by the GIA as follows:

Excellent

Very Good

Good

Fair

Poor

The GIA cut scale

The same grades are applied to Polish and Symmetry for the Round Brilliant, and all other diamond shapes, too. As we mentioned earlier, anything graded ‘Good’, ‘Fair’ or ‘Poor’ is likely to impact the visual beauty of the stone, and its light performance, which means this is not an area to save money.

Most online jewelry stores don’t sell diamonds that fall below ‘Very Good’ on the GIA’s scale, so it’s pretty easy for first-time shoppers to get used to price points as they pertain to well-cut diamonds.

It’s important not to get ‘cut’ confused with ‘shape’, which also impacts a diamond’s market value. Jump to the section entitled ‘How Does Shape Affect Price?’ for more on this subject.

Market Trends and Price Fluctuations

The popularity and complexity of certain shapes – not to mention the wastage produced by each one – will impact their value by thousands of dollars.

Yes – that’s right. Two diamonds featuring the same clarity, cut and color grades, and the same level of fluorescence, can still differ in price by thousands of dollars, simply because of their different shapes.

It makes sense, then, that the most expensive diamond cut is also the most popular. In fact, the Round Brilliant – that classic diamond cut for the classic solitaire ring – accounts for more than half of all diamonds purchased each year across the US, with the 1 carat Round Brilliant representing the true ‘mainstay’ of the world of engagement rings.

The Round Brilliant isn’t just popular – it’s also more than a little inconvenient for diamond cutters, who have to sacrifice around 60% of the original weight of the rough diamond, in order to create the perfectly proportioned shape and facets of the Round Brilliant.

Given what we said about the high value of weightier diamonds, it’s clear that the diamond cutter has to make up for this loss in weight another way: by increasing the cost of the Round Brilliant.

Some shapes prove far more economical for diamond cutters, which translates to lower prices on the market – particularly when you take into account their relative lack of popularity, compared with the Round Brilliant.

A 1 carat SI1 H color Round Brilliant, for instance, could cost around the mark of $6,700, a 1 carat SI1 H color Pear cut diamond (fancy cut) is going to be considerably lower in price, around $4,900.

Other Influences on Diamond Price

We talk about the Four Cs at length on this site, primarily because they represent the most significant features for any diamond – both in terms of quality and price – and provide a pretty convenient way for you to gain insight into those all-important considerations. Still, there is more to a diamond than cut, color, clarity, and carat…

How Fluorescence Affects Price

Depending on the severity of the fluorescence, prices can be reduced by between 2.5% and 25%, in extreme cases.

Some diamonds are naturally fluorescent, and some more so than others. You can read more about Diamond Fluorescence here but, for now, the most important thing to keep in mind is that fluorescence can have a pretty major (and negative) impact on the appearance of a diamond.

For starters, it can create a noticeable blue cast within the stone – something that most diamond buyers (and, in particular, buyers on the hunt for an engagement ring) don’t want. Furthermore, an extremely high level of fluorescence can create a cloudy look within the diamond – another undesirable feature.

As a result, diamonds with fluorescence are priced lower.

As with the Four Cs, fluorescence is graded on a scale:

None

Faint

Medium

Strong

Very Strong

We advise shoppers to stick to the range of None, Faint and Medium, in order to ensure that they don’t pick out a diamond that appears blue or cloudy.

Strong fluorescence can reduce the price of a diamond by between 10% and 20% (or more, in some instances), while, for the most part, Faint fluorescence will only reduce the price by between 2.5% and 6.5%.

Diamond Certification – a Necessary Cost

Not necessarily, but a diamond that has not been graded by a reputable body and accompanied by an authentic report is likely to cost less – and represent a far greater risk to you.

One important thing to note is that the term ‘certified diamond’ is technically incorrect, as labs that offer grading for diamonds are not there to certify them, but to create a comprehensive and clear report on that particular stone. Nevertheless, the process is colloquially referred to as diamond certification – and is a very important process to understand if you want to make the best purchase possible.

Grading a diamond is the only way to determine its value. Without that report, we can only guess at a diamond’s quality – and, in turn, its price. The GIA, or the Gemological Institute of America, represents the most widely trusted lab for grading diamonds, and their methods were specifically designed to provide transparency and clarity to shoppers.

Without a report, shoppers are in the dark – and vulnerable to paying potentially thousands of dollars more for a poor quality diamond.

Each week, the Rapaport Diamond price list is released, and that sets a guide price for diamonds that fall at particular carat weights, and particular grades for clarity and color, and establishes a price per carat.

Some grading labs are a little too ‘loose’ with their methods, which means that, according to the Rapaport Price List, they will be priced higher than they would be if, say, the GIA had graded them.

GIA graded diamonds are not inherently more or less valuable than diamonds graded by another lab, but they are priced more realistically – thanks to the exacting methods used by this lab’s graders.

You can read more about diamond certification here, and the different labs operating today – and, accordingly, the labs that will ensure you make the best possible decision.

Analyzing Long-Term Value Trends

As with any high value purchase, it’s handy to know where your money is going – and what that initial investment could mean in the future.

Diamond’s market value has been steadily increasing since the 1960s – around 14% year on year. This is, of course, partly down to inflation – but also sheer popularity. The diamond for diamonds – and, of course, diamond engagement rings – is continuing to grow, and our near-unanimous love for this gemstone shows no signs of slowing.

Couple that with the inescapable fact that diamonds represent a finite resource. Compared with many other natural substances, they are rare – and all the more so when they are of a good size and quality – and take billions of years to form underground.

All things considered, it’s no wonder that their value on the global market continues to rise. 

Diamonds as Investments

In general, yes, but it depends on what kind of investment you’re looking to make.

If you’re the sort looking to turn a quick profit by keeping a sharp eye on fluctuating market prices, then a diamond won’t represent the wisest investment. Why? Because a diamond’s value tends to dip for a little while after purchase before it stabilizes. In order to retain a diamond’s value, you’d have to invest without ever seeing it – and not see it before you sell it onto the next buyer – which is not something people looking for an engagement ring tend to do. That represents a totally separate side to the diamond world.

A diamond’s value is lower than what you’re going to pay for it, as a casual buyer in the market for an engagement ring. This is mainly down to the fact that, when you buy a diamond,, it’s subject to the same mark-up that any other product is; plus, you’ve likely invested into the ring setting, too, and, potentially, the premium cost of a certain brand.

Chances are, however, that you’re not looking to do this. An engagement ring – or any other piece of fine jewelry – is designed to be worn by one person, and one person only, for many, many years.

In this sense, a diamond is a good investment. First of all, because it’s impossible to match the sentimental value wearers of engagement rings feel towards them and, secondly, because diamond’s value continues to increase globally.

We do not have an endless supply of diamonds waiting to be mined – and that fact alone will continue to push their value higher throughout the years.

Resale Value

While the immediate resale value of a diamond will be lower than what you paid for it, the long-term increase in the value of diamond is an important factor to remember.

The exact answer to this question depends on many factors – namely, the quality of the diamond being resold and, of course, how long after purchase you intend to resell it. Just as there is no simple equation behind the price of all diamonds, there is no simple equation for calculating their resale value.

After all, the Krupp Diamond – famously nicknamed the Elizabeth Taylor diamond – was purchased for $305,000 (about $2.4 million in today’s money). In 2008, forty years later, the diamond was sold for $8.8 million – an incredible increase brought on by the diamond’s impressive size, beauty, and history.

For diamonds without that same level of prestige, the story is going to be quite different. Over the years, however, the sentimental value of a beautiful diamond ring takes precedence within a family, and few will want to sell it – regardless of value.

As we mentioned above, however, the value of diamond continues to increase – so who knows quite what the future holds for vintage, second-hand diamonds?

How to Evaluate a Diamond’s Worth

It’s all good to understand the theory behind a diamond’s value but, even then, it’s not always easy to put that knowledge into practice and work out exactly what you should expect to pay, and why. 

A fair diamond price will be one that takes into account the diamond’s GIA report findings for cut, clarity, color and carat weight, and shape.

Even after learning about the different factors that contribute to a diamond’s value, it can still be difficult to predict what price a diamond should be given, and whether or not you’re being ‘taken for a ride’.

For starters, this can be allayed by simply choosing to shop from a reputable online jewelery store. One of the main benefits of shopping with us is the fact that you can trust our standards. We know our diamonds inside out, and will never mark them up (or attempt to pass off their quality as better than it really is).

After that, it’s a case of growing comfortable with the value of diamonds that possess the weight and quality you’re looking for. Utilizing the Rapaport Diamond Price List will ensure that you’re more clued.

Supply, Demand, and Diamond Pricing

Diamonds are one of the few retail sectors without a retail benchmark for consumers. It can be a confusing experience for first-time diamond buyers to purchase a diamond. Confidence is essential when it comes to luxury products that will accompany consumers through significant life events. It is important for consumers to be able to buy diamonds with the confidence that they paid a fair price for them.

The DSRB presents a retail price recommendation for a diamond based on each of the 4Cs (Cut, Carat, Color, and Clarity) and the high-end retail prices currently in the market, allowing enough room for all business models. The DSRB should only be used as background information, and the sellers determine actual prices.

The Diamond Suggested Retail Price is based on the following principles:

• Up-to-date market data
• Derived using an objective and transparent methodology
• Audited by a third party
• Supportive of the trade
• Accessible to consumers worldwide
• Governed by an inclusive board with representatives from all stakeholders – manufacturers, wholesalers, retailers, and consumer advocates

For each category of Cut (Shape), Carat, Color, and Clarity, the DSRB is determined by the following formula:

{High asking prices in the open global professional B2B markets}

+

{High customary retail markup}

Conclusion

A diamond’s value is calculated by quality, rather than a single, measurable feature like weight or size. It could be worth just a few hundred dollars, or its value could extend way into the millions – but there is always a reason behind that price.

As soon as you get the ring on your partner’s finger, a diamond is worth far more than the initial expense. The staggering number of diamonds sold each and every year to happy brides- and grooms-to-be is a testament to the fact that there is some undeniable quality within these gemstones capable of doing justice to this momentous stage in a couple’s journey together.

This isn’t something that anyone can quantify, but it’s a sure sign that the value of a diamond is something that is worth paying – and, for that reason, something that is worth understanding, in order to make sure that you get the most beautiful diamond possible.

8 FAQs

• Q: How is the price of a diamond determined? 
• A: The price of a diamond is primarily determined by the 4Cs: Cut, Color, Clarity, and Carat weight. The combination of these factors influences the overall quality and price of the diamond.
• Q: Does the shape of a diamond affect its price? 
• A: Yes, the shape of a diamond can significantly affect its price. Round-cut diamonds are generally the most expensive due to their high demand and cutting precision, while other shapes like oval or princess-cut may offer more affordability.
• Q: Why are some diamonds cheaper than others, even if they have the same carat weight? 
• A: Diamonds with the same carat weight can vary in price due to differences in cut quality, color, clarity, and other factors like fluorescence and symmetry. These attributes greatly impact the overall value and appearance of the diamond.
• Q: What is the most affordable diamond color grade that still looks colorless? 
• A: Near-colorless grades, particularly G to I, are often the most affordable options that still appear colorless to the naked eye, offering a good balance between quality and cost.
• Q: How does fluorescence impact diamond pricing? 
• A: Fluorescence can lower the price of a diamond, especially if it’s strong or very strong. In some cases, fluorescence can improve the appearance of lower-color diamonds, making them appear whiter.
• Q: Is it better to buy a larger diamond with lower clarity or a smaller diamond with higher clarity? 
• A: This depends on personal preference. A larger diamond with lower clarity can offer more presence at a lower price, but if you prioritize brilliance and purity, a smaller diamond with higher clarity might be preferable.
• Q: Can the metal of the ring setting affect the overall cost? 
• A: Yes, the choice of metal can impact the cost. Platinum is typically more expensive than gold. Opting for white gold or yellow gold can be a more budget-friendly choice while still providing durability and aesthetic appeal.
• Q: Is it cheaper to buy diamonds online or in a physical store? 
• A: Buying diamonds online can often be cheaper due to lower overhead costs for online retailers. However, it’s important to purchase from a reputable source and ensure the diamond comes with a proper grading report.

Explore the world of diamonds with JewelerAI. Dive into our AI-powered selection process, tailored to find your perfect ring at the best price!