Last Updated on May 16, 2022
A diamond is one of the most valuable stones in the world. Diamond is a natural gemstone and is mostly used in jewelry worldwide. However, there any many types of diamonds and the quality you will find. Therefore, it is important to understand the factors that can affect the price of diamonds.
Keep reading to know more about diamonds. Make sure to be aware of the factors that determine the price of diamonds to avoid overpaying. Many people are curious about the questions we have addressed below.
How Much Is A Pound of Diamonds Worth?
Diamond fall under the category of gemstones, and the measuring unit is Carat. Carat is a weight measuring unit and equals 200 milligrams.
The average price of a carat of diamonds is valued at $8,400, but for brilliant-cut ones. After some calculations, the value of diamonds per pound would be around a whopping $19 million.
However, there are many types of diamonds and many factors that influence the price of diamonds. Continue reading to know more about the most precious stone in the world.
What Factors Influence The Price Of Diamonds?
Multiple factors come into play when you have to determine the price of diamonds. One of the first factors that influence the price of a diamond is the carat weight. When you buy or sell diamonds, the carat weight is the first thing that influences the price.
Then comes the cut grade of the diamonds. Cut grade is a grade representing the finish and quality of the cut of the diamonds. The grade tells us how brilliantly the diamond is shaped.
The color and clarity of the diamonds are the last two factors that influence the diamond’s value.
The better each factor is, the higher the value of diamonds will be. Make sure to get the diamonds checked by experts to avoid overpaying. Many people fall for the shine of diamonds and end up overpaying.
Therefore, it is important to get the diamonds checked and verified by an expert. They can tell you the range of value the diamonds hold.
What Is The Difference Between Carat and Karat?
Both of the words may sound similar, but there is a lot of difference between them. So don’t confuse yourself with them.
Carat is a weight measuring unit used for stones such as diamonds and many others. However, karat is a purity measuring unit for precious metals such as gold, silver, platinum, etc.
The karat tells us how pure the jewelry’s metal is and helps determine the value. There are many types of karats for every metal.
Is Diamond Worth Investing In?
Jewelry is one of the best investments you can make to increase your wealth over time. Diamond is no doubt of the best ways you can invest—however, the timeframe you are planning to hold the diamonds for matters the most.
Diamond is good to invest in if you are looking for a short-term investment. For example, if you hold the diamonds for three to five years, they would greatly resale value. But holding them for fifteen to twenty years wouldn’t get you a higher resale value than the years you held them for.
What Are The Different Cut Grades For Diamonds?
Cut grade is one of the factors that influence the price of diamonds. The cut grade tells us how brilliantly the diamond is cut and shaped. The fineness is what matters the most in diamonds.
Therefore, the cut grades were introduced to label the types of cut of diamonds. Four types of cut grades can be awarded to diamonds.
The lowest grade is Poor, which means it is poorly cut. During the shaping and cutting process, so much material is wasted that the diamond has lost its shine.
Fair is a grade awarded to inexpensive diamonds due to their inability to produce brilliance. On the other hand, a very good grade is for the diamonds with good cuts, and less material is wasted in cutting them.
The highest grade that a diamond can hold is excellent or brilliant cut. This is the most expensive type of diamond as there is no material wasted. In addition, the diamond that has the highest light refraction is worth purchasing.