What determines the price and value of diamonds?

14 Jul 21

Everyone knows that diamonds are precious stones but assessing the correct value of a diamond is a matter best left for the experts. The value of a diamond, along with the economic context and the asking price of the jeweller will ultimately determine the price of your diamond. The price of diamonds is expressed in US dollars per carat. A 0.5 carat diamond, for example, is priced at $1,400 per carat. The price for this diamond is then $1,400x0.5, so $700.

In this article, we will cover the following topics:.

What impact does the economy have on the price of diamonds?

How does weight affect diamond value and price?

What role does the cut play in diamond value?

Check out the prices of diamonds at BNT Diamonds

What impact does the economy have on the price of diamonds?

The price of diamonds is determined, among other things, by the world’s economy. Most importantly, the price is determined by supply and demand. In countries such as China, India, Brazil and the Middle East in general, the demand for diamonds has increased exponentially in recent years. This indicates that the price of diamonds is increasing. However, crisis situations and financially difficult conditions — such as the coronavirus crisis — can temporarily weaken the price increase of diamonds. Over time, the diamond price will recover, because diamonds are an intrinsically profitable product that will become increasingly scarce in the future. In China, for example, the demand for cut diamonds has recently increased again.

FIND OUT WHY DIAMONDS ARE ALWAYS A SMART INVESTMENT

How does weight affect a diamond’s value?

The value and price of diamonds per carat increase at a higher weight class. For example, a 3-carat diamond costs five times as much as a 1-carat stone. Diamond prices increase exponentially as the weight increases, not only because of the increased weight but also because of the higher price per carat. A 0.99-carat diamond is worth only 1% more than a comparable diamond of 0.98 carats. However, the value and price of a 1-carat diamond are about 20% higher than a comparable 0.99-carat diamond. These prices apply to perfectly cut diamonds. A small difference in weight can have a huge influence on the price and value of diamonds.

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What role does the cut play in diamond value?

Due to the 20% price increase from a 0.99 carat diamond to a 1 carat diamond, it makes sense that a diamond cutter will do everything to achieve a weight of 1 carat. A diamond may therefore seem very cheap, but if the stone is poorly cut you may still be overpaying.

A perfectly cut brilliant diamond of 1 carat could have a diameter of 6.5 mm. Another 1-carat brilliant can measure 6 mm. However, for the weight, this stone does not have the right diameter and will therefore not shine optimally. If you choose a 6 mm stone, it should not weigh more than 0.8 carats. Apart from the lower weight, this brilliant also falls into a cheaper weight category. The price of the diamond will therefore be less, but the 0.8-carat diamond will sparkle more beautifully than a similar but larger brilliant diamond.

High-quality diamonds from BNT Diamonds

BNT Diamonds buys diamonds straight from the source to offer you the best quality diamonds at the best price. In addition, all our diamonds have passed through a renowned certification agency, such as GIA, HRD or IGI.

If you are interested in buying diamonds as a value investment, please contact us for objective advice.

About Fabienne Rauw

BNT Diamonds Antwerp

Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six years of experience at BNT Diamonds she acquainted well with the product and the marketing around it. Her degree in PR ensures that BNT Diamonds is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.

With this article, BNT Diamonds strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.