Determining the selling prices of most products is quite easy. Simply determine the manufacturing cost , then the cost to market it, and finally mark up of 15 – 30% or more. It’s that simple. But the price of diamonds is not quite as simple as that. Many factors are taken into account when diamonds are priced.
The price of diamonds is determined primarily by adding the cost of rough diamonds, the cost of cutting diamonds, and all other costs necessary to turn rough diamonds in a marketable diamond. It also depends on the importance of the diamond. In this aspect, an independent company can certify the quality of diamond based on color, cut, clarity and weight.
The diamond becomes increasingly expensive each time it changes hands. When it finally reaches a retailer, the price is raised a little more. However prior to reaching the retailer, the diamond must travel from the miner, cutter and polisher to an independent classification society, and then the primary market. When finally it has reached the primary market, it will be purchased by traders and wholesalers to the retailers.
The sooner you can buy a diamond in the process, the cost will be lower but not the value. The value is based on the amount the diamond will be sold through a retailer in the market.
If you’ve got a diamond, and you have no idea how much it is worth, you can have it appreciated. But then the appreciation might not be accurate. It’ll be better to have it certified through the GIA – Gemological Institute of America. The information on the certificate can be used as a cutting guide to the determine exactly how much your diamond is worth.
Prices calculators for diamonds are available on the Internet, and many diamond dealers use them. You must understand that before you can accurately price a diamond, without the Diamond Grade report, you need to know a little about diamonds such as different cuts, clarity, color, and weight.Each of these adds to the value of a diamond, or decreases the value of diamonds.
So better get a Diamond Grading Report on the diamond. Then use this information to get the price that the diamond cutting industry uses. Doing this will ensure that you have the most specific value of diamonds in your possession, or diamond that you are considering to purchase.
Tags: diamond price, Diamonds