How To Know The Justified, The Correct Price Of A Diamond Jewel?

Note: This article deals with the pricing of jewelry created using smaller Diamonds, under 0.10-0.15ct each.

Right from a few bucks to few thousands, or even millions; DIAMOND jewelry is always difficult to price, especially for ordinary shoppers.

In this guide, you will learn:

-- Factors that determine the price of Diamond jewel.

-- Estimating the “right” price of a Diamond jewel, and

-- Recognize the over-priced sellers in a jiffy.

FACTORS THAT DETERMINE THE PRICE OF A DIAMOND JEWEL

There is a 99% probability that you are already on your way in doing some online research regarding Diamond 4C’s, Diamond Quality, etc.

Well, lets quickly have a look at the factors affecting the Diamond price:

-- Cut :– ‘Ideal’ is most expensive and ‘Fair’ cost’s average.

-- Color :– D color (colorless) is costliest as its rare and as the Diamond color drops, so does its cost.

-- Clarity :– Needless to say, ‘Flawless’ (FL) Diamonds are the most pricey, and as the clarity gets poor, the price significantly reduces.

-- Carat :– The bigger the Diamond, the more $ it seeks!

-- Fluorescence :– Not many people take this in account, a Diamond with a strong fluorescence will be priced many bucks less than one with no fluorescence. (because less fluorescence = more glitter)

-- Fancy Color :– Diamonds that have a definite fancy color like Blue, Pink, Yellow, etc. will attract a huge price. Note: Yellowish/brown Diamonds do not qualify in this, rather they are quite inexpensive.

-- Combination of factors :– A 1 carat, colorless (D) & Flawless clarity Diamond will cost much more than a bigger, say 2 carat poor color (say J) and clarity Diamond.

As you now see, there are few more factors that affect the price of a Diamond, that come into play other than the 4C’s.

ESTIMATING THE ‘RIGHT’ PRICE OF A DIAMOND JEWEL

But even after knowing the above factors very well, how can you know the right price of the Diamond(s) in your jewel?? Keep reading…

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--- Ugly Fact: There is no “standardized” pricing for Diamonds! Diamond prices will vary from store to store, whether offline or online.

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How are Diamonds priced then?

Diamonds are priced on a ‘per carat rate’ basis.

For e.g. 100 Diamonds of 0.01ct equals 1 carat Diamonds, same for 10 Diamonds of 0.10ct.

But since there is a huge size difference between them, the per carat price of each of them will vary substantially, meaning the smaller Diamonds might be around Rs. 30000/- per carat while the larger ones may be around Rs. 45000/- per carat! Click to compare Diamond sizes.

So, just see the difference….

-- 100 Diamonds of 0.01ct each = 1.0 carat in total = Rs. 30000/- and

-- 10 Diamonds of 0.10ct each = 1.0 carat in total = Rs. 45000/-

Does it mean that anyone can sell at any rate??

No, the pricing is generally in a hierarchy, with the quality of the individual Diamonds(4C’s) and the individual size of the Diamonds being directly proportional to the price.

Meaning, a couple of years back, smaller Diamonds generally had the following per carat rate:

-- 0.01ct Diamonds of Top quality (D-F color, FL-VVS clarity…)

Per carat rate = Between Rs. 29000 to Rs. 31000

-- 0.05 carat Diamonds of ….

Per carat rate = Between Rs. 32000 to Rs. 34000

So with this knowledge, lets find out the correct price of your Diamond jewel!

Lets assume that you have purchased 2 Diamond rings:

RING 1 has:

-- 20 Diamonds of 0.02ct each of top quality (E-F colour, VVS clarity)

-- 4.5gms 18ct Gold

-- Highly skilled labour work (intricate = cumbersome for the craftsman!)

Approximate pricing of this ring:

-- 20 Diamonds x 0.02ct each = 0.40carat in total

Assuming a carat rate of Rs. 30000 = 0.40 x 30000 = Rs. 12000/- for the Diamonds.

-- 4.5 gms 18ct Gold @ Rs.1200 per gm = 4.5 x 1200 = Rs. 5400/- for the Gold

-- Skilled labour for a ring = Approx. Rs. 2500/-

So the addition of all = 12000 + 5400 + 2500 = 19900/-

Therefore, the ring shouldn’t be priced more than Rs. 20000-20500/-

So if a seller is selling the ring for over Rs. 20500, well, you know what to do!

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Approx. labour charges:

1. Diamond Rings with highly skilled work + numerous Diamonds = Approx. Rs. 2400-3000

2. Diamond Earrings with same as above = Approx. Rs. 2700-3500

3. Diamond Pendants with same as above = Approx. Rs. 2000-3000

With the above information, you can easily find out the correct, justified price for any Diamond jewel.

One last note: If you don’t know the “per carat rate”, just ask the vendor for it, if he is a good vendor, he will definitely tell you.