Factors That Influence Diamond Pricing

Factors That Influence Diamond Pricing

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Right from when a diamond is found deep in a diamond mine, it goes through many stages of fine-tuning till the final product reaches the retailer for you to purchase. If not passed through these processes, the diamond gives a dull appearance and scraggy edges which fail to enhance its value in the market. Let us study what factors influence the eventual price of a diamond-

Diamond Mining-
As a freshly sorted stone, a diamond starts its price meter with the expensive and elaborate mining operations carried out by big diamond companies. Being rare, mining a diamond in itself is the biggest factor that makes it demand good amount of money right at the first stage.

Diamond Cutting-
The process of cutting and polishing, also called as lapidary, begins on the diamond. The cutter tries to cut into various facet amounts that would produce maximum brilliance and finest characteristics thus calling for the best price of the diamond. Maximum weight retention, optimum aesthetics and hiding color traces and inclusions are the main keys that a cutter keeps in mind in this process. This delicate and elaborate process requires expert knowledge and special equipment which influences the diamond price.

Diamond Polishing-
The diamond is hen polished with compounds such as cerium oxide, tin oxide, chromium oxide, and aluminum oxide. The polishing helps in adding to the diamonds brilliance and enhancing its luster by aiding maximum light reflection from the surface. Thus a diamond is passed onto many hands, and its cost keeps adding till it finally reaches the retailer. Deceitful diamond cutters and polishers tend to reduce labor costs by ignoring these two important procedures.

Diamond Laboratory Report-
After the diamond is cut and polished, theres still a long way to go in determining its final price. Diamond is sent to reputed laboratories to analyze and grade the 4Cs of a diamond. The report lists the minute details and characteristics of a diamond that are not visible to the naked eye. Although this process adds to the cost of a diamond it is well advised to get your gem certified from a notable and respected body like the GIA. Not only does this give the buyer a sense of assurance that he has bought a genuine product which is worth its money, but it helps in getting a higher resale value for the gem.

Diamond Carat Weight-
Every person looking for a diamond has to decide on a carat weight he is looking for. The higher the carat weight, the price of the diamond also gets as higher. But one should know that the cost of four 1 carat diamonds is much less than one 4 carat diamond of same quality. Though one can compromise on the other Cs to get a larger diamond within their budget and liking.

Diamond Color Grade-
The color goes down as an important factor as well in deciding the cost of this gemstone. Almost 90% of the diamonds found in the world are seen to have a yellow to brown tinge; with the absolutely colorless being the most coveted lot. The more colorless a diamond, the more expensive it is. This is with the exception of colored diamonds, or fancy diamonds, which come in the colors of the rainbow. These are the most expensive and rarest of all diamonds.

Diamond Clarity Grade-
Diamonds with negligible traces of inclusions or imperfections, which are termed Internally Flawless by industry terms, tend to be extremely rare, and thus more expensive. Lesser the inclusions, more is the price of the diamond.

Diamond Cuts and Cut Grade-
Many people prefer the brilliant cut for their diamond as it is believed to have the highest amount of fire and sparkle. Step cut is also available in the types of cut of a diamond. This isnt the sole factor that influences the diamond price, but the grade of cut also counts as a deciding factor. More the cut move towards Excellent grade, the higher price it demands.

Diamond Shape-
There are various shapes of diamond available in the market. The popular ones include brilliant round, princess, heart, cushion, etc. The price of the diamond also depends on individual shape of a diamond, as it requires the skill of the cutter to craft these various shapes out of the rock.

Wholesaler / Dealer Cuts-
Each stage of the diamond crafting, grading and marketing procedure adds considerable amount of value in the diamond, resulting in a total amount very high from the first step of mining. When the diamond reaches the final buyer, it gathers the cuts and commissions of all the wholesalers, retailers and diamond dealers on the way.

About the Author:
I am Sharon Reid, 27 years old expert in jewelry and diamonds. Check out My favorite Diamond Jewelry from www.b2cjewels.com



Article Originally Published On: http://www.articlesnatch.com


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