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Cost
The most important "C" you have to think about is
COST. The few times you usually hear about cost, it is usually
as a "salary guideline" or "buying tips"
which may include "advice" to spend about two months
salary on a diamond engagement ring. Would you like to know
where the idea of two month's salary came from? A marketing
person whose job it is to sell as many Diamonds as possible.
The reality is that there's no "guideline". There
are too many personal factors to consider. You know your financial
situation better than anyone. You have to decide on a budget
for how much you want to spend, and/or can afford to spend,
and then go out and see what that budget can buy.
How much does each "c" affect cost?
Let's take a typical Diamond, and change the various properties
to see how it affects the price:
Carat
: A Diamond of G color and SI1 Clarity will be in one Category
of prices when it is between 0.50 - 0.69 carats. When you
take that same quality Diamond and increase the size to the
next price category, which is the 0.70 - 0.89 carat range,
the price increase will be approximately $1,100 per carat.
Increase to the 0.90 - 0.99 carat range, and the price increase
will be approximately another $800 per carat. Increase to
1.00 - 1.49 carat range, and the increase will be approximately
another $800 per carat. Increase the carat weight to the 1.50
- 1.99 carat range, and the price increase will be approximately
$1,200 per carat.
Color
Let's start with a 1.00 carat Diamond of K color and VS1 Clarity.
If you move up to an H color, you will pay approximately an
extra $1,700 per carat. Move up to F color, the increase will
be approximately $1,100 per carat. Improve the color to D
and the increase will be approximately $900 per carat. Clarity
Let's start with a 1.00 carat Diamond of G color and SI1
Clarity.
If you move up to a VS1, you will pay approximately an extra
$1000 per carat. Move up to VVS1, the increase will be approximately
$700 per carat. Improve the clarity to IF and the increase
will be approximately $700 per carat.
Cut
Cut is a bit more complicated and depends on various factors,
like the quality of Diamond you are considering. Ideal cuts
are generally much more expensive than the others. But it
needs to be judged on a case by case basis. If you are purchasing
a Diamond and have a certificate, a diamond grader can analyze
the cut via the measurements.
Pricing Terminology in the Diamond Business
We would like to clear up some confusion as to how pricing
works in the Diamond industry. The price of Loose Diamonds
in the wholesale market is stated in Dollars (Pesos, Dineros,
Shekel, Italian Lira...) per Carat. This figure is multiplied
by the number (or fraction) of carats being bought.
Example 1:
Jeweler buys 40 carats worth of Diamonds from Dealer at $2,000.00
per carat = $2,000 X 40 carats = $80,000 (for 40 carats-worth
of stones).
Example 2:
Consumer buys 0.50 carats worth of Diamonds from Jeweler at
$3,000.00 per carat = $3,000 X 0.50 carats = $1,500 (for 1
stone).
Sometimes Jewelers will quote to retail customers a per carat
price or sometimes they will quote a price per stone. So a
0.50 ct. diamond can be quoted as $3,000.00 per carat, which
comes to 0.50 x $3,000.00 = $1,500.00 for the diamond, or
it can simply stated as $1,500.00 per stone. When buying a
piece of Jewelry which may contain one or more type of gem,
the price will always be per piece.
Total Weight
When you see T.W., or Total Weight, it will refer to the total
carat weight, per gem type (at least they should and usually
do break it down by gem-type). So a ring with emeralds and
sapphires and diamonds could say:
Example 3:
Emerald t.w. = 0.25 cts., Sapphires t.w. = 0.31 cts., Diamonds
t.w. = 0.75 cts.
This refers only to the weight as measured when the gems are
loose and unmounted. It has nothing to do with the number
of gems contained in the Jewelry. The above example could
mean there were 5 emeralds, 7 sapphires, 100 diamonds as easily
as it could mean that there were 2 emeralds, 2 sapphires and
2 diamonds.
QUICK CARAT COST QUESTION:
Which would be more valuable? 100 diamonds with a t.w. (total
weight) of a carat? Or 2 diamonds with t.w. of a carat?
Answer: 2 diamonds! Why? Because Carat, which is the Second
C, is more valuable the bigger it is. 1 Diamond of 1 carat
is worth more than 2 Diamonds of 1 carat.
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