The Price of Diamonds – Everything You Need to Know

Most people have heard of the diamond term, cut, but are unclear as to its actual meaning. This term is simply a way to measure a diamond’s weight; one carat is equivalent to 200 milligrams. The abbreviation use for carat is “ct,” which is one unit of diamond weight and the abbreviation used for carat total weight is “ct TW,” which is only used for a single piece of jewelry consisting of multiple diamonds. Of course, carat weight can be used as a measurement for colored gemstones but colored gemstones are not equivalent in size to diamonds. This is due to the larger density of gemstones or in other words, the amount of weight in a single space.

In regards to a diamond’s weight, the term used to express it is called points. One carat equals 100 points. Sometimes the weight will be expressed in decimal points. For instance, a diamond equaling 0.05 carats is the same as five points and a diamond equaling 0.25 carats is the same as 25 points, or 1/4, of a carat.

The carat weight of a diamond can affect its value. Usually, the larger it is, the more rare it is and the higher its demand in comparison to a smaller diamond that has the same quality; the larger diamond in this instance can be sold at a higher price. An excellent example of this selling practice is that a diamond solitaire ring consisting of one carat always costs more than a ring consisting of similar, yet smaller multiple diamonds that also equal one carat total weight.

Also, diamonds that have a weight falling under the following full-size carat cost less that those that slightly surpass the full carat size. For instance, a diamond that weighs.90 carats instead of one full carat, or a diamond that weighs 1.90 as opposed to two carats, will look the same to the eye in terms of size but the diamond that weighs less will also cost less.

Comparing diamonds is basically a useless practice except when both diamonds have extremely similar features and qualities. The best method to determine a diamond’s true value is to calculate the per carat price of two or more similar diamonds. This simple equation only requires dividing each diamond’s cost by it carat weight.

Unfortunately, there is no diagram that can fully describe diamonds of various carat weights since shape and cut variations cause them to look different even though they may have similar weights. Although the carat weight proves invaluable to anyone who wants to buy a diamond, this information is only one of many factors you should consider; it is important to gain a complete understanding of diamond basics before stepping into your local jeweler’s. The website, http://priceofdiamonds.org is a great resource that includes extremely detailed and thorough information about buying, selling, and grading diamonds. They also have a diamond weight chart that shows how the size of a diamond directly relates to its weight.