How Does Diamond Get Their Price?

How Does Diamond Get Their Price?

There are various elements of diamonds, as well as a myriad of factors that affect their pricing. Particularly, the 4 C’s are responsible for determining the cost that the piece of a stone will fetch in the market. The 4C’s are the main variables of diamond valuation. These are clarity, the cut, carat weight and color. With these aside, there are still much more factors that should be considered when calculating the price of these precious stones.

Price of diamond in retail versus values of the same in the wholesale

It is true to say that the price you acquired your pieces of diamond jewel from a seller cannot be the same with the current resale value. This is evident even in other products like cars. They reselling price cannot measure up to the buying. Diamond reselling prices can at times drop dramatically, nonetheless, if you may have purchased it very long time ago, there are higher chances of selling it at a much higher price than you had expected. It is normally during boom years that diamond prices normally escalate. This, therefore, calls for one to appropriately time when the prices are right to have the asset value appreciate. Other than this, there are still various factors that can affect your diamond prices.

The Shape

The round diamonds remain to sell more expensively than all other shapes. While the radiant, cushion, princess cuts, and archers may be popular types of diamonds, their prices are much lower. Those with an oval, emerald cut, or pear-shaped are cheap while the marquises are also cheap. The trend and popularity of a diamonds shape also alter its price.

The Color

The color of a diamond affects its price and even a slight difference has a great effect on the price. Diamond colors are graded in a scale that starts with D and ends with Z, with D being white or clear, and Z being dull and cheapest. The D colors such as red, blue as well as green are considered the most exquisite and fetches the highest prices both offline and online stores such as Brilliant Earth.

The Fluorescence

The size of the stone affects the price of the stone. The larger the size, the higher amount it would fetch in the market, on the other hand, magic diamond sizes would play a major role. Magic diamond sizes comprise anything from 0.50 to 5 cents. The moment a stone passes the magic size, its price per carat automatically goes up to extremes of from 15 to 20% more than the price of a usual carat.