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Understanding the 5th C of Diamond

Factors affecting the cost of the diamond

· Buy Jewelry Online,Engagement Rings,Designers Jewelry
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Whenever you think of attending any event the first thing you think about is the dress and the jewelry to go with it. Whether it an official work or a grand party a simple yet classic ornament can become the game-changer. Just find yourself a good dress and brilliant diamond jewelry to go with it and you are all set to turn heads.

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You don’t need any expert advice on how to accessorize your look with diamond jewelry. But is it only about getting the right accessory or getting it for the right price that would make you happy? Who doesn’t feel good about getting diamonds for a better price? You don’t want stores to give you offers or discounts to do that. You can pick it yourself at a good price only you need to know the simple trick of calculating the right price of the stone.

The cost of a diamond depends on a lot of factors. A little bit of smartness can save you from paying extra for a lower-grade diamond. Here, is the guide or more like tricks that can help you calculate the appropriate price of the stone when you go on to buy diamond jewelry for your next big event.

The cost structure of the diamond

The simple concept of pricing can be understood by looking at the gold rates. You will find that the gold price often fluctuates with its availability, karat, market demand, making charges, etc. But when it comes to diamonds, the concept changes. The price of a diamond is calculated in an entirely different fashion than how we calculate the price of gold. Diamond is in a different league altogether. You will find that the value of well-cut and polished diamonds is way more than the rough uncut ones.

Taking a look at the global-wide free market you will see that the rate of diamond is inversely proportional to the demand. The more demand for the diamond the lower will be its cost. Meanwhile, the free market doesn’t control diamonds but the giant cartels do. It’s they who decides and fixes the price of a diamond.

Looking at the history

If you go back in history you will see that De Beers founded by Cecil Rhodes in 1888 used to control around 80% of the trade and usage of rough diamonds. Later on, companies like Rio Tinto and ALROSA joined the business slowly cutting the percentage from the De Beers down. Still, De Beers holds the majority of the worlds’ diamonds comprising around 35%. It's these companies that determine the price of the diamond and its worth in the market.

So, it's these companies that hold control over the diamond industry by controlling the availability and flow of the stone. From mining, processing to marketing and delivery of the rough diamonds to the companies and retailers, everything is handled and controlled by these cartels. For a common man, these intricacies can be very boring. Let’s just stick to the point to know whether you are overpaying for the diamond or not.

Are you paying the right price?

Let’s get down to the business. Just like gold, the cost of diamonds is set keeping the international market in mind. The only difference is that the gold remains consistent for every gram but the cost of the diamond changes according to its grading. It's not just the 4 Cs but many other factors that influence the cost. Factors such as supply, trading, retailer’s expense, and market demand decide how the price of the diamond will change. The 4 Cs that affect the price of diamond are:

Diamond cut

The better the cut of a diamond, it will reflect light brilliantly. It is for this reason that some of the cuts are more expensive than others. For example, the round cut is more expensive than the princess cut.

Diamond clarity

Clarity is just one word but it has several features under it that determine the value of the stone. Stone size, location, type of stone, and irregularities are taken into account while putting a price on your diamond.

Diamond color

Diamond is known for its colorless feature. The more colorless it is the more will be its price. There is a color grade chart to determine its rate according to the colorlessness. From D to F the diamonds are of high quality. But the stones falling in the category of G to M will cost lesser as there are tints in the stone but they are not visible to the naked eye.

Diamond carat

Just like any other item, even for a diamond, the price will be higher if its weight is more. Carat does not fully determine the cost of the stone. You will have to look into other qualities to determine its cost