Diamonds are sold by the carat (shown as ct.), which is actually a unit of weight, though most think of a carat in terms of size. The rates of the diamonds are quoted per carat.
Diamonds are priced per carat. For example, if a 0.50-carat diamond costs (Total price paid for the piece) $1,000 that means the price per carat is $2,000 (0.50 carat x 2 = 1 carat). Another example, if you see a 1.25-carat diamond that costs $6,500 per carat, then the total price would be $8,125 ($6,500 x 1.25 carats).
To get the total diamond price, use the following formula:
Total Diamond Price = Price per Carat x Carat Weight
If you check the prices at most diamond retailers, the price for any particular stone will most likely be a total price. But these prices are still based on the above-mentioned formula.
Remember that prices per carat go up the bigger a diamond gets.
The increase is due to the fact that bigger diamonds are rarer compared to small ones. The carat size of a diamond increase, the diamond’s price increases at an increasing rate. Why? Because the larger the diamond, the more increasingly rare it is. Fewer than one in one million mined rough stones are large enough to produce a finished 1-carat diamond. So, as carat weight increases, you will typically pay more not only in total but on a price-per-carat basis as well.
Details that determine the price of a specific diamond:
Two diamonds of equal carat weight can have very different costs based on other factors (such as cut, color, and clarity). If the consumer’s desire is set on a certain size of the diamond, then carat weight will probably be the most important factor in your search until the wished size is attained. At that point, other criteria will take on more importance. This is the common myth that most women will ask for the carat weight and shape of their ideal diamond, and most men will ask for the price.
Is bigger the diamond – Higher the price?
The larger a diamond is, the rarer it is. And the rarer it is, the more valuable it becomes. In other words, a 1.00 ct diamond will cost much more per carat than a 0.50 ct diamond. A 2.00 ct diamond will have a much higher per-carat price than a 1.00 ct diamond. But the big assumption what we are taking here is, all the other parameter remains the same, eg: Clarity, Cut and Color. If there is a slight change in any one or all of these factors, our statement will not stay true – Bigger the Diamond and Higher the Price.
The diamond price is determined by all 4 Parameters, but the impact of the Size of the diamond in Carat is always more on price than comparing other parameters like Clarity, Cut, and Color.
