Understanding Price

Many people are confused as to how the 4Cs affect price of diamonds. The best explanation is that asking for the price of a diamond is like asking for the price of a house. A real estate agent can’t quote you a price for a house without knowing its size, condition, location, etc. This is true for a diamond as well. Specific preferences in cut, clarity, carat and color will affect a diamond’s price.

When you begin searching for a diamond, it is helpful if you have an idea of those characteristics that are most important to you. If you were buying a house you might specify to your realtor that you wanted a 3-bedroom house with 1 ½ baths. Or you may opt for a house with a large living room and a 2-car garage. The cost of the two houses may be equal but the parameters vary.

The process is the same one used when buying a diamond. A diamond’s beauty, rarity, and price depend on the interplay of all the 4Cs – cut, clarity, carat and color. The more rare the diamond’s characteristics the higher the price it demands. Remember that buying a diamond is an investment, since it maintains its qualities and value forever.

The Diamond Quality Pyramid was created to help explain the 4Cs in terms of rarity. For example, a colorless diamond is at the top of the Diamond Quality Pyramid in the color category…but if it is small, of lower clarity and cut, it will be of a lower value.

No one C is more important that another in terms of beauty and it is important to note that each of the 4cs will not diminish in value over time unless damaged by an accident.

Once you have established those 4C characteristics that are most important to you, a jeweler can then begin to show you various options with quoted prices.