Diamonds are one of the most valuable gemstones, but how much is a pound of diamonds really worth? The answer to this question may surprise you. They can range from $8400 per carat for smaller stones up to over $10,000per carat for larger ones, depending on its size and quality(color/clarity).
With that being said, the average price for a 1.0 carat round brilliant cut diamond is $8,400. This means that the average price per pound of diamonds is over $19 million.
In this blog post, we will help you learn more about diamonds and their prices.
Is A Diamond Valuable?
Yes! Diamonds are one of the most valuable minerals on earth. This is why it is important to know about diamonds before buying them to avoid overpaying or purchasing something not worth its cost.
Factors That Determine The Price Of A Diamond
The price of a diamond is determined by four 4Cs: carat weight, cut grade, color, and clarity.
Carat Weight
The first factor that affects the cost of diamonds is carat weight which refers to how heavy one stone would be if it were converted into the water at its original size. A carat weighs about 200 milligrams (0.007 ounces).
Cut Grade
The second factor that affects the cost of diamonds is cut grade. Cut grades are based on how well a diamond has been shaped and measured to maximize its brilliance:
- Excellent – The most expensive because it does not waste any material, producing maximum light refraction
- Very Good – A good quality diamond with less wasted material which makes them less expensive than Excellent cuts
- Fair – These diamonds are inexpensive because they do not produce a lot of brilliance
- Poor – Very poorly cut, so much material is wasted that the diamond loses its ability to shine.
Color
The third factor which affects the cost of diamonds is color grade, or how yellow it appears in comparison with other colored gems on the market. The grade is determined by comparing a diamond with the light spectrum and then giving it a letter based on where it falls:
- D (colorless)
- E (near colorless to slightly yellowish hued)
- F and G (very light yellow tinged with white or off-white)
- H, I, J, K, L (yellow tinted with brown)
Clarity
The final factor which affects the cost of diamonds is clarity. A diamond’s clarity grade range from flawless to included, as shown below.
- Flawless – The most expensive because it has no inclusions or blemishes
- Internally Flawless (Flawless)– diamonds that have no flaws on the surface but may contain some internal features
- Very Faint Inclusion (V. Fine) – these include minor imperfections such as tiny clouds, small feathers, and small pinpoints.
- Faint Inclusion (Fine) – these diamonds with small, hard-to-see inclusions that do not affect the stone’s appearance or durability
- Included – These diamonds contain more noticeable flaws such as feathers and clouds. This is the lowest quality diamond available for purchase.
Does A Diamond’s Value Change Over Time?
The answer to this question depends on how long you plan to hold onto your diamond purchase. If you intend it as a short-term investment for five years or so, then yes, the resale value will increase as time goes on. However, if you are hoping to resell a diamond in twenty years or more then chances are the resale value may not be so great after all. The jewelry industry has changed too over the last few decades and it is difficult for companies to find new sources of diamonds which mean there will be less available on the market.
Why Should You Invest In A High-Quality Diamond?
One may be wondering why it is important to invest in a high-quality diamond. Why not just purchase one that falls within your budget? The answer lies in personal preference and the fact that diamonds are expensive, meaning you will have to buy an appropriately priced stone if you want it for any length of time.
A jeweler can offer advice on which cut grade may be most appropriate for the buyer’s needs, what color and clarity to choose as well.