Diamonds are one of the most expensive gems found in various types and styles. People fond of jewels often prefer diamonds. They look elegant and rich, and of course, they exude class. But you should know that, like other precious gems, diamonds are also set in a metal made of gold or silver. And this impacts the overall price of the jewelry, which most people are not aware of. Yeah, most people do not pay attention to how diamonds are priced. However, it is an integral part of purchase, and you should be aware of it. So, if you want to know how diamonds are priced and how their Diamond Exchange Rate trends can enhance your jewelry purchase, read this post. Let’s get started…
How Diamonds Are Priced?
When it comes to the prices of diamond jewelry, two important elements play a major role: diamond and metal (gold or silver). Jewelers charge separately for both elements. The price of the diamond primarily depends on the 4Cs: Cut, Clarity, Colour, and Carat. Here is a brief description of all these important aspects
➤ Cut
Diamonds used in jewels are first cut and polished. A diamond’s quality improves with the excellence of its cut. The quality of a cut enhances the beauty of the gem. The grading of the cut varies from excellent to poor, with very good, good, and fair as intermediate options. A diamond’s cost increases with the fineness of its cut. The shape of a diamond determines its sparkle.
➤ Clarity
Clarity signifies the internal characteristics of the gem. As we all know diamonds are minerals created by nature. They might include various impurities, internal flaws, and surface imperfections. That’s the reason diamonds are first cut and polished. This is done to refine the quality of the stone. The clarity measurement is conducted between FL and I3. FL represents perfection or flawless, while I3 denotes imperfection.
➤ Colour
Diamonds are found in numerous color options, including colourless to light yellow. The colorless diamond is considered the best, while the yellow ones are of the lowest quality. Diamonds are also graded based on their color. The grading scale for diamonds begins at D and continues through to Z. A diamond that exhibits a D color grade is regarded as the highest quality available.
➤ Carat weight
Like any other stone, the physical weight of the diamond is also calculated. The physical weight of the diamond is measured in carat. One carat is equivalent to 0.200 grams or 200 milligrams. Increase in carat naturally increases the total cost of the diamond jewellery. It is important for you to gather all the information about the pricing of the diamond before you make the purchase. You always have the privilege to visit different jewelers and check pricing per carat before you finally make the purchase.
Let’s now see how the prices of diamond jewelry are calculated. Here we go…
Calculating Diamond Jewellery Price
As you know diamonds are usually set on a metal. This metal could be gold or silver depending upon your choice. So, when you buy diamond jewellery the price of the metal and diamond are calculated separately. Carat (CT) signifies the weight of the diamond, whereas Karat (KT) is the measure of metal, including gold. Usually, 14 or 18 KT gold is used in diamond jewelry. This is because 22KT gold is soft, and it cannot hold the diamond.
Let’s understand this with an example
Let’s say it’s your wedding anniversary, and you want to buy a diamond necklace for your beloved wife. So, the total price of the diamond necklace will be calculated using this formula: (price of diamond based on cut, clarity, colour, and carat x weight of diamond) + (price of 14KT/18KT gold x weight of gold in the necklace) + making charges + GST.
Let’s now take a look at different factors that affect diamond prices. Here we go…
➤ Factors Affecting Cost of Diamond or Exchange Rates
There are numerous factors that impact the cost of diamonds. Some of them are outlined here; take a look…
1. Quality of Diamond
The quality of a diamond depends on the color, cut, clarity, and carat. They are the globally accepted standards. It is crucial to check all four to ensure the best purchase. When you buy diamond jewelry, these are the four important aspects that you should check and what you pay for. More often than not, reputable jewelers provide you with a certificate of authenticity to ensure the best quality of diamonds. This certificate usually includes a photo of the jewelry along with the details of the diamond, including the quality. Make sure that your jeweler provides you with a certificate of authenticity. If he doesn’t, then don’t buy from them.
2. Precision
Precision simply means the cut quality of the diamond. A precisely cut diamond will cost you more compared to the one that is poorly cut. Aside from that, the shape of the diamond matters as it determines its sparkle.
3. Clarity & Colour
A crystal-clear colourless diamond cut with precision will cost you more than the one that is yellow in colour and is not cut with precision.
4. Carat Weight
Diamonds are measured in carats. 1CT diamond is equivalent to 0.200 grams or 200 milligrams diamond. Increase in the carat weight simply increases the overall cost of the diamond jewellery. It is important to recognise that as diamond weight increases, the corresponding weight of the metal will also rise, as a sturdy metal is necessary to securely set the diamonds.
5. Brand
The brand from where you buy the diamond jewellery also impact the prices. Different jewellers charge different prices for diamond jewellery. Hence, it is advised to check prices with different jewellers before making the purchase. Brand from you buy your diamond jewellery from also impacts the exchange rate of your diamond.
6. Certification
Undoubtedly, uncertified diamonds cost you less than certified ones in the short run. However, in the long run you end up losing a significant amount as you don’t get what you paid for. Hence, it is crucial to buy a certified diamond. A certified diamond helps you get better exchange rates later.
7. Design
The design of your jewellery will also impact the overall prices of your diamond jewellery. Traditional or antique diamond jewellery is tended to be costlier than the latest diamond jewels.
Let’s now take a look at the different diamond exchange rate trends. Read on…
Understanding Diamond Exchange Rate Trends
What is the Diamond Exchange Rate?
Diamond exchange rate refers to the fluctuations in the prices of diamonds due to different market conditions. These trends keep changing depending on the economic conditions, availability, demand and supply, geopolitical events, and changes in consumer preferences. It is crucial for you analyze these trends before you decide to buy diamonds. Monitoring exchange rates can help you make profitable purchase.
Which is the Best Time to Exchange Diamond?
The best time to purchase diamond is when the value of your local currency is strong against the currency of the diamond’s origin. This is the best time you can make more cost-effective purchases without compromising on the quality of the stone.
How to Exchange Diamonds?
Exchanging diamonds simply means to sell or trade your diamond for another diamond or cash in return. It is crucial to do your homework before you exchange your diamonds. Here are the steps you need to follow when you decide to exchange diamonds:
STEP 1: Evaluate your diamond and determine your jewelry exchange preference. STEP 2: Look for potential exchangers (or jewelers). STEP 3: Negotiate the offer with a potential exchanger. STEP 4: Once finalized, make sure to update certifications and documentation.
Why Should You Exchange Your Diamond?
Exchanging diamonds gives you the opportunity to upgrade your jewel collection. It is one of the best and oldest methods to buy new and latest diamond jewelry designs. Numerous renowned jewelers offer the facility for trading old diamonds for new ones. All you have to do is to look for such a jeweler and have your certificate handy.
The Bottom Line
So, this is all about diamond exchange rate trends. I hope that you liked this article. It helped you understand the basics of diamond exchange rate trends and how to calculate the cost of diamond jewelry. Trading or exchanging diamond jewelry is one of the best ways to enhance your collection. However, it is crucial to be attentive and careful when trading old diamonds for new ones. Make sure to buy your diamond jewellery only from trusted jewellers. Also, it is crucial to obtain the certification of authenticity (of course, it will add to the cost of the jewelry), but you’ll always benefit from this small yet most important aspect of the diamond purchase. Happy Shopping… 😊 😊
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