How Diamond Prices Are Determined

For Most products to determine the price is pretty easy. Determine how much it costs to manufacturing, how much it costs to market it then add profit margin around 10 to 30% or more. Well, pricing diamonds is not so simple. There are several factors are taking into account, when determined diamonds prices.

Diamond prices are determined first by add the cost of rough diamonds and loses in weight during diamonds cutting and polishing, and all other costs necessary to turn rough diamonds to saleable diamond. Depending on the properties of a diamond, independent company may be consulted to certify the grade of diamond based on 4C’s - color, cut, clarity and weight.

The diamond turns expensive each time it changes hands, until it reaches the retailer, where the price is to be slightly raised, however, the diamond must travel from the mine to the cutting and polishing, to independent grading and rating company, and then the primary market. Once reached to primary market, it is purchased by diamond dealers and wholesalers, and from there it will be sold to retailers.

You can purchase a diamond in the process with lower cost of the diamond, but not the value. The value is based on what the diamond will sell for in the market place via a retailer.

If you own a diamond, and you have no idea how much its value, you can consult GIA – Gemological Institute of America- to certify your diamond. After certification from GIA your diamond known as GIA certified diamond, with the data about your diamond on certificate, you can use a cutter’s guide to accurately determine how much your diamond is worth.

There are also many diamond price calculators available. These can be found On the Internet, and many diamond traders use these as well. You must realize, however, that before you can accurately price a diamond, without a Diamond Grade Report or certificate, you need to know quite a bit about diamonds, such as different cuts, clarity, color, and weight – and how each of those aspects adds to the value of a diamond, or downgrade the value of the diamond.

Again, it would be better if you can get Diamond certificate and use that information to evaluate price based on one of the diamond price calculators that the diamond cutting industrial uses. This will give you the most the precise value of the diamond in your possession, or the diamond you are thinking to buy.

For more information about loose diamonds, solitaire diamonds and White Diamonds