Calculating the Value of Diamond

Pricing most goods is relatively simple. Determine how much it costs to create the item, how much it costs to promote that item, and then score it up by 15 – 30% or further. Simple, right? Well, pricing diamonds isn’t pretty that easy. There are lots of factors that are well thought-out when diamonds are priced.

Diamond prices are determined first by adding up the cost of the coarse diamond, the cost of cutting the diamond, and all extra costs essential to turn the coarse diamond into a money-making diamond. Depending on the significance of the diamond, a self-governing company may be called in to officially state the rating of the diamond based on color, cut, clarity, and weight. At this point, the diamond becomes further costly each time it changes hands, until it lastly reaches a vendor, where the price is raised a bit more. Before reaching the merchant, however, the diamonds have to travel from the mine, to the cutter and polisher, to the autonomous 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 vendors.

As you can see, the earlier you can procure a diamond in the process, the lesser 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 vendor.

If you own a diamond, and you have no idea how much it is worth, you can have it evaluated, but the assessment may not be precise. 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 precisely 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 become conscious, however, that before you can exactly price a diamond, without a Diamond Grade Report, you need to be acquainted with quite a bit about diamonds, such as various cuts, clarity, color, and weight – and how each of those aspects adds to the value of a diamond, or diminish 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 value in one of the guides that the diamond cutting industry uses. This will give you the most precise value of the diamond in your custody, or of the diamond you are taking into consideration for purchasing.