The Value of a Diamond

For some, diamonds are a symbol of wealth and status; for others, merely beautiful objects to enjoy. Regardless of why one chooses to purchase a diamond, there are a number of factors that contribute to determining the value of these precious stones.

In order to determine the value of a diamond, a process (aptly dubbed The 4 C's) is used - this stands for clarity, color, cut and carat weight.

Clarity

Assessing a diamond based on its clarity involves determining its purity. A clarity rating is given to the diamond based on the number, size and location of any imperfections that are found. These imperfections are called "inclusions" (if the diamond is flawed internally) and/or "blemishes" (for external flaws.)

Color

A diamond's "color" is simply a grade assigned to the diamond based on how much color or pigment is visible in the stone. Diamonds can range from absolutely colorless to yellow, as well as rarer colors such as red, pink, blue, green and brown. Because these latter colors are harder to find, they greatly enhance the value of a diamond.

Cut

The proportions, symmetry and finish all combine to describe the "cut" of a diamond. Well-cut diamonds will sell for a much higher price than poorly cut diamonds. The brilliance of a diamond (how it reflects light and the most important facet of the stone) is what accounts for much of its beauty. For that reason diamond cutters take great care to arrange the facets (flat surfaces) in such a way as to reflect the most light possible.

Carat Weight

The final "C" contributing to the value of a diamond is carat weight. This refers to the weight of the stone (not the visual size), based on a 100-point system where one full carat is equal to .20 grams. The higher the carat weight, the more expensive the diamond will be. This is because rough, large diamonds are exceedingly harder to find than smaller carat weight diamonds (meaning there are fewer opportunities to create larger cut diamonds.)

Clarity, color, cut and the carat weight are all important factors when assessing how much an individual diamond will be worth. In order to determine an accurate value for any diamond, all four C's must be taken into consideration.