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April 30th, 2021

How Does Carat Weight Affect a Diamond’s Price?

diamonds price

Whether you are going to purchase a diamond or sell a diamond, carat weight is one of the most significant factors that bestow the biggest impact on the diamond’s price. The truth is:

As a diamond’s carat size increases, the price of the diamond increases considerably. Why?

This is because the larger a diamond’s carat size, the rarer it is. Indeed, it is pretty hard to find bigger diamonds than smaller ones. The fact is that out of one million rough stones that are mined, less than one stone is large enough to be cut and polished into a 1-carat diamond.

Thus, the larger diamonds are worth substantially more. The cost of two smaller diamonds might be less than the cost of one diamond of equivalent weight.

Relationship between Diamond Price & Carat Weight

The size and quality of a diamond do not increase its prices linearly. In fact, carat weights are exponentially related to diamond prices. For instance –

The price of a 1-carat diamond is £5,388. But it does not signify that the price of a 2-carat diamond will be £10,776. Instead, the cost of a two-carat diamond would be significantly more than the cost of two individual 1-carat diamonds.

On the contrary, two gold pieces of one kilogram will cost like one piece of two kilograms gold.

  • Unlike gold, you cannot melt diamonds and shape them into any desirable form and size.
  • Moreover, small rough stones typically turn up more during the mining process than the rough pieces weighing hundreds of carats.

Thus, when the weight of the rough stone rises, its ‘price per carat’ value increases exponentially.

Keep in mind:

The biggest jumps in price happen at the full and half-carat levels. Many diamonds are cut to precisely 1 carat in the market. Why? Due to the diamond’s pricing system, you can buy a jewellery piece at cheap consisting of multiple small diamonds rather than one large diamond.

Some Valuable Facts about ‘Carat’

It is foremost essential to understand that carat refers to a diamond’s weight, not the size. People typically use these terms interchangeably, but both are different.

  • Two diamond rings may look different from one another.
  • However, the weight may be similar depending on the diamond’s cut.
  • If a diamond looks larger to your eyes, it won’t always signify more carats. One carat equals 200mg.

Another significant fact to remember is that desirability also influences a diamond’s price. Particular carat weights like 1 carat and 1.25 carat are more popular and coveted than others. Thus, if you sell a loose diamond of 1 carat or above, you are likely to secure a higher price than what you would receive for smaller diamonds.

However, diamonds of these carat weights not always have an endless supply. Eventually, their value often rises dramatically than other carat weight diamonds.

Do you want to sell a diamond of 1carat & above?

If you are looking to sell a loose diamond of 1carat or more, get in touch with us to get the highest possible cash for diamonds. The Luxury Hut is one of the most trusted diamond buyers who buy large loose diamonds, 1 carat and above. Fill up our online form now to get a free quote. Or call on 0207 242 9160 for an instant valuation over the phone.

Also Read: The Most Expensive Diamonds In The World That Will Make You Go Crazy

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