How Valuable are Diamonds Today?
Posted on April 23 2019
From the time they were discovered centuries ago up to this day, the charm of diamonds come from their rarity, the romance that comes with discovering them, how strong they are, and the intricate process of cutting them before they are transformed into fine jewelry. Diamonds are usually associated with love, legacy, wealth, and glamor, which makes them desirable among many. But aside from desire or emotional reasons, the value of a diamond is measured by certain factors affecting its cost.
So how valuable are diamonds these days? It depends. The four elements that affect the cost and value of a diamond are the 4Cs namely cut, clarity, color, and carat. The 4Cs are guidelines established by the Gemological Institute of America (GIA) to determine the quality and value of a diamond. Let’s look at each of them.
How a diamond is cut is perhaps the most complex factor that influences its price. The cut has a major role in the amount of light that comes in and reflected by the diamond, the brightness, the scattering of white light that forms into a rainbow of colors, and the scintillation or the amount of sparkle. A properly cut diamond will have the right proportions and will cost higher than diamonds that are structured poorly.
The cut will depend greatly on the diamond cutter’s decision on how large it will be, what shape it will take, and what inclusions or imperfections will remain on the diamond. One small mistake can cause great implications not just on the light the diamond reflects, but also on its price.
Clarity refers to how pure the diamond is.
Inclusions inside the diamond such as flaws, marks, blemishes, scratches, trace minerals and other tiny characteristics will affect how light reflects from the different facets in a diamond. While these are typically invisible to the naked eye, inclusions are still important points of valuations because they help determine the unique characteristics of the stone, spot imitations or fakes, and learn about the formation of a diamond.
Typically, the fewer the internal and external flaws of a diamond, the higher the cost would be.
Diamonds come in different colors such as white or colorless, blue, pink, yellow, black, and red.
Whites are the most common and perhaps, the most popular because they allow light reflection easier, which results to more sparkle. Meanwhile, colored diamonds hold a unique charm of their own. If a diamond has a natural color, it would have more value as opposed to a diamond treated with radiation to enhance its shade.
The color of a diamond is measured when the stone is still loose or not yet part of a jewelry, because jewelry can sometimes make a diamond look more yellow or platinum than what it really is.
Carat refers to the weight measurement of a diamond. Just like with most goods, the heavier the diamond, the pricier it is. Larger stones are rarer, which make them more expensive. A 2-carat diamond will cost more than two 1-carat diamonds of the same quality.
Carat is one of the factors that people often pay attention to when buying diamonds, but it is important to note that a diamond’s quality is not just based on its size.
At the end of the day, the intrinsic value of a diamond for most people will be driven by emotions—who gave the jewelry, the event it commemorates, and what they felt upon receiving it. However, diamonds are also valuable stones that hold a high monetary value, and it’s equally important to know their cost and worth. If you decide to let go of a jewelry through selling or loaning against its value, it pays to have the knowledge and understanding of what affects a diamond’s cost so that you can make informed decisions.
Meanwhile, if you’re looking for diamond jewelry for a loved or for yourself, please browse through our catalog. We sell guaranteed authentic and precious diamond pieces fit for different tastes and occasions.