Diamond Pricing 101

Some of the most common questions from prospective shoppers revolve around diamond pricing and how they are priced relative to each other.

As most of our clients learn, the diamond market is ever-changing and heavily determined by a number of factors - primarily known as the 4 C’s. What many potential clients do not know is that the price of a diamond is also dictated by its journey to the jeweler. The price of diamond rough that is shined and polished to be converted into the diamond (or diamonds!) that you wear in your ring was cut in a specific way for a specific reason. The rough that the stone is cut from determines its natural color, the presence of imperfections (or inclusions), and what shape and size the end result is. Diamond cutters finish diamonds in a way that saves the weight and maximizes on sparkle, which will inevitably vary the cost.

Round diamonds are typically sold at a premium, because they require the most rough cut away in order to maintain the shape and facet arrangement. Fancy cuts, like ovals and elongated cushions, have much more variation in their shapes and therefore are easier to cut in larger sizes. You may notice that by comparison, a round diamond and a fancy diamond of equal size and quality will not be the same price: the round is always more expensive.
Demand
Another factor to consider when buying a diamond is demand. As with any fashionable luxury item, certain styles - and in this case diamond shapes - rise or fall to the top and bottom of the popularity chart. Because round diamonds are the most brilliant and timeless shape, they will for the foreseeable future stand alone at the top... After that it becomes unpredictable! At this very moment, ovals, cushion, pears and radiants are all trending diamond shapes. Part of this is due to the popularity of these shapes for celebrity engagements.. Celebrity examples include Hailey Baldwin’s oval cut ring, Ariana Grande’s pear shape, and Kim Kardashian’s cushion cut.
Exponential Pricing
The last crucial point of diamond buying to consider is exponential pricing. As seen in the video, the price of a diamond increases exponentially as the size increases, as opposed to a linear increase, which accelerates at a fixed rate. It is more rare to find larger individual pieces of rough diamond that are considered gem-quality, or fit for an engagement ring (think J color or better, SI2 clarity or better).
For example, a two carat round diamond of equal quality/shape to a 1 carat diamond will not be two times more expensive - it would be closer to three times the amount as the diamond price per carat increases. With that said, a two carat diamond will NOT look twice as large as a one carat diamond. Since the weight is distributed evenly throughout the diamond both at the surface and underneath in the pavilion, you will only see about a 20% difference in size despite adding 100% in carat weight. This is evident in how a typical one carat diamond has a 6.5mm diameter, while a 2 carat diamond will be about 8mm in diameter; a 4 carat is about 10mm and so on.

To conclude, the diamond market and diamond pricing are determined by a number of factors and how each of those factors work together. As a buyer, the best way to get the most bang for your buck is by doing your research and staying informed. It also helps to understand what you can emphasize and sacrifice while choosing your perfect diamond to maximize its value!