People get sticker shock daily, especially when they're shopping for Diamonds. People who haven't looked at the Price of Diamonds for over 20 years and are in for a nice, little surprise.
It's a fact...
Diamonds are not Cheap!
The way Diamonds are Priced is even harder for some people to grasp. How does Carat Weight affect Price? Let's find out...
Picture this
Picture a .25 Carat (1/4) Diamond. VS1 Clarity, E Color. (My favorite Clarity and Color!) A going rate for this particular Diamond (as of this writing) is $471.00 That's actually a pretty great deal. (These Prices were obtained through Blue Nile)
So, logically that would mean that double the Carat Weight, would be double the Price? Right? It makes sense. But, NO! That's wrong!
A .50 Carat Diamond, VS1, E is going for $1404.00 Almost Triple the Price.
Why is this?
The Bigger the Stone...
Because the bigger the stone, the more rare it becomes. Especially when we're dealing with a great Clarity like VS1 AND a great Color like E! The more rare a Diamond gets, the more money it costs!
The next step up is no better. A .75 Carat (3/4), VS1, E, is Priced at $2974.00 So that wasn't too bad. Just a little bit more than double.
And how about a 1 Carat? A One Carat Diamond, VS1 Clarity, E Color is selling for $7112.00 WOW! That's a nice chunk of change isn't it? Far cry from the $1404 1/2 Carat. So a One Carat of the exact same Color and Clarity of a Half Carat is actually 5 times the Price! Quintuple!
Rare in Nature
Anything One Carat or larger in Nature is very rare. That's why Prices start to escalate. Also keep in mind, we're talking about one of the best Clarities and best Colors available on the market today. These qualities force the Prices to the top.
Sticker shock yet?
Let's keep on moving... 1.50 Carats, VS1 Clarity E Color makes the Cash Registers ring at $13,746.00 (What I paid for my first car! ...but then again, my Car died 20 years ago, and this Diamond would still be around looking brand new. You have to put it in perspective!)
Interesting? Are you curious to see what even bigger Carat Weights bring?
A 2.00 Carat Diamond, VS1, E is going for $27,891.00. I'm sure I heard a few of you gasp at that Price. That's some major dough.
Still going...
How about a Diamond the size of your thumbnail? 5.00 Carats! A Five Carat Diamond of VS1 Clarity and E Color (better be sitting for this one) would cost you
$313,581.00
Yikes! lol Pocket Change!
So you see, going from a .50 Carat all the way up to a 5.00 Carat (ten times the size) doesn't give you just ten times the price, it's actually a 224 times increase! What do you want? This House or that Diamond? Love is grand, isn't it?
That 1.00 Carat Diamond for 7 G's doesn't sound so bad, now does it?
Anything 1.00 Carat or higher is going to demand a Premium. These stones are Very Rare and Very Valuable.
Most Women would die for a 1.00 Carat. Well, not really die, but some would faint! :)
Bigger is better. But only if you've got the bucks to back it.
Otherwise, that 3/4 Carat is looking pretty darn good!
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