To understand diamond price is the bit complex for newbies. Diamonds are valued on per carat basis. Carat is standard measurement unit for weight. Just, as kilogram or ounce for gold, term “carat” is used with diamonds. 1-carat diamond weight equal to 200 milligrams. Check the below link to know more about diamond carat or ignore & read further if you already know.
Read Now – Diamond Carat Weight – (Very Important Read)
So, I hope you read above article about diamond carat weight, as it’s important to know first about diamond carat and then about diamond pricing.
How is Diamond Value Calculated in Trade?
Diamonds price are always calculated on per carat basis, whether you buy 0.32 carat, 1.27 ct or 3.04 carat diamond. Let do some math to make it easy. For example,
Formula: Diamond Cost = Carat Weight * Price Per Carat
Price for 0.32 carat is 850$ per carat, 1.27 carat is 1800$ per carat & price for 3.04 carat is 4100$ per carat which means :
A ) 0.32 * 850 = 272$ Total for 0.32 ct
B) 1.27 * 1800 = 2286$ Total for 1.27 ct
C ) 3.04 * 4100 = 12464$ Total for 3.04 ct
But all the major online diamond vendors display total price, so you don’t have to do math all the time. If you buying a diamond from the jewellery store, Usually, prices are quoted per carat basis. So, make sure with a sales person before taking any further decision.
Who set this “Price Per Carat” values?
Most of you might be wondering, from where does this price per carat number comes from?. Well, there are two major organisations named as RAPAPORT & IDEX. They set the price per carat from 0.01 to 10.00ct for D-to-N colour and FL-to-I2 clarity. However, RAPAPORT price list (RAP List) is most commonly used in all major countries. For shapes like princess, oval, heart etc, Rapaport releases common price list for all fancy shapes and another list for round shape diamonds.
Before, Rapaport price list was only available to trade members. But, now you can buy one at 50$ from the Rapaport website. These price lists are updated weekly based on demand, supply & other factors. Don’t worry to buy new price list every week as there are very few % change or no changes. Or you can even simply comment down your diamond’s carat weight, colour, clarity & Shape. We don’t mind sharing the latest diamond price as per RAPAPORT price list.
How To Read Price List?
So, above we have a sample copy of Rapaport Price List. Let us learn how to read it. For Eg, You have to check the price for 1.01 carat, H colour, VS2 clarity stone. To know the diamond price you need to know 3 things. Weight, Color, & Clarity of diamond.
As you can see on above price list image there are different values for every diamonds. Here we have 4 different carat weight segments which further can be read in a matrix. So, For 1.01 carat, we have to look under 1.00-1.49 ct price segment. Then, check colour & clarity verticality and horizontally within the matrix.
All the values are in hundreds. So the price for 1.01 H VS2 is 6300 USD per carat. As this is old price list just used for reference and example. The price per carat for 1.01 H VS2 is 7200 $ ar per Latest RAPAPORT price list
This are not standard prices for diamond, It’s just a base price.
Rapaport price is the base price on which diamond dealers provide more discount or ask premium depending on diamonds. This makes diamond dealers compete with each other.
What is Back/Discount & Premium from Rapaport list?
A) Discount – Percentage of discount applied on Rapaport base price. Term Discount, Back, Below, Less all are same & commonly use in trade.
B) Premium – Percentage of addition in price from Rapaport base price. Means X% addition from list price. This happens in very fewer cases.
Example For Discount – 1.01 H Vs2 3EX ( excellent cut, excellent symmetry, excellent polish) with NONE fluorescence is available at 34% discount. It’s similar to “15% off at Nike Shoes”. Let do some math and make it more simple.
RAPAPORT PRICE – % Discount = Price Per Carat * Diamond Carat weight = Total Price
6300$ – 34% = 4158$ per carat price * 1.01 Carat weight = 4199.58 Total price
In case of premium, you have to add % to the Rapaport base price and multiply with carat weight for total value. (opposite of discount, you have to pay more than list price)
One diamond dealer might provide 1.01 H Vs2 cheap at 40% discount and other might provide at 32% discount. WHY? Read further.
Understanding Diamond Price & Find Real Value.
Pricing simply does not rely on diamond’s colour, clarity and carat. There are a lot of other factors that determine diamond’s value. Like, you can even buy GIA o.50 ct I SI1 at 45% discount (cheapest) or another similar stone at 35% discount (expensive)
What makes such huge difference in pricing with similar certified diamonds?
Factors like diamond fluorescence, diamond cut, symmetry polish etc effects most. Another major factor that affects the diamond price is its “CLARITY”. A VS2 diamond with centre black crystal will be cheaper and a VS2 diamond with eye-clean will cost more. Let see the below example screenshot from James Allen. How price change despite all other things ( fluorescence, cut, polish, symmetry) remains same. It’s due to NICE VS2 and BAD VS2 in simple words.
This might shock you, but many people like you get ripped off and end up paying more for BAD VS2 kind of diamonds. Above example shows how there is 700$ dollar difference in 2 stone while other things remain same on certificates.
Hence, it quite important to learn all things before making a final purchase. Or even you can send us an email asking about your question. I would be happiest person to provide you unbiased views and recommendations – Get Free Diamond Buying Help Now
I always recommend you to buy GIA or AGS certified diamonds. Just in case if you are buying a loose diamond without any certificate, Then appraising non-certified loose diamond on the base of RAPAPORT price list is not a good idea. As you don’t have authenticity report from trusted lab or sources. Hence, without knowing the actual stuff you cannot fix the price, right?
Want to know the latest RAPAPORT PRICES? Comment below 4 things; Diamond’s carat weight, colour, clarity & shape. We will share the latest diamond price.