How Diamond Prices Are Determined

Pricing most products is quite easy.

Determine how much it costs to make the item, how much it costs to market that item, and then mark it up by 15 – 30% or more.

Simple, right? Well, pricing diamonds isn’t quite that simple. There are many factors that are considered when diamonds are priced.

Diamond prices are determined first by adding the cost of the rough diamond, the cost of cutting the diamond, and all other costs necessary to turn the rough diamond into a marketable diamond. Depending on the importance of the diamond, an independent company may be called in to certify the grade of the diamond based on color, cut, clarity, and weight.

At this point, the diamond becomes more expensive each time it changes hands, until it finally reaches a retailer, where the price is raised a bit more. Before reaching the retailer, however, the diamond must travel from the mine, to the cutter and polisher, to the independent grading company, and then to the Primary market. Once it has reached the primary market, it will be purchased by diamond dealers and wholesalers, and from there it will be sold to retailers.

As you can see, the earlier you can purchase a diamond in the process, the lower the cost of the diamond will be – but not the value.

The value is based on what the diamond will sell for in the market place – through a retailer.

If you own a diamond, and you have no idea how much it is worth, you can have it appraised, but the appraisal may not be accurate. You will be better off obtaining a certificate through GIA – Gemological Institute of America. With the information on this certificate, you can use a cutter’s guide to accurately determine what your diamond is worth.

There are also many diamond price calculators available. These can be found on the Internet, and many diamond dealers use these as well. You must realize, however, that before you can accurately price a diamond, without a Diamond Grade Report, 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 decreases the value of the diamond as the case may be.

Again, you will be better off if you get a Diamond Grading Report on the diamond, and use that information to look up the price in one of the guides that the diamond cutting industry uses. This will give you the most accurate value of the diamond in your possession, or of the diamond you are considering purchasing.

Recent Diamond News

I see the umbo Jewels in alexrob.personallog.org - Last week I told you about the trend report I put together about the jewelry marketplace, and I shared some tips for shopping from the Diamond Information Center. Well, now I want to share some more insider information from Helena Krodel at the Jewelry Information Center (JIC), a total pro and fabulous trend forecaster. [Read More...]

Sell Gold - Sell precious metals - Sell scrap gold for Cash - If you are looking for selling your gold ,precious metals,and scrap gold.Dollars4gold will pay you top dollar for your broken or unwanted jewelry.We buy precious metals,Diamond jewelry [Read More...]

NJ's LARGEST SPRING BRIDAL JEWELRY & CERTIFIED DIAMOND SALE - APRIL 18TH TO APRIL 25TH 2009! Expanded selections from the worlds Leading Designers, The Hearts On Fire Diamond, Scott Kay, Flyer Fit, Peter Storm, Camelot Bridal, platinum and 18 k designs...Loose Certified Diamonds, Engagement rings, Ladies and Mens wedding bands, anniversary rings, eternity bands, remounts and more... [Read More...]

Jewelry ? Women Simply Just Love Them - Historically, men and women have gone mad over gold and diamonds which can be tracked easily by tracking wars. Today, jewelry has many occasions and parts to adorn your body,.... [Read More...]

Dazzling Diamond Range Rover SUV-Coupe - I was surprised to see this new, dazzling diamond-studded Range Rover SUV-Coupe. Tiret NY, watch and jewelry manufacturer, in collaboration with LSE Design have transformed Range Rover Sport into the 2-door Tiret Coupe. It was unveiled at this year?s Swiss watchmakers expo Baselworld. [Read More...]

White Gold Diamond Ring - NetCarats - NetCarats offers large collection of diamond ring including white gold diamond ring, stud earrings and various other diamond jewelries. [Read More...]