Stumble it!

In order to price most products first you need to determine the cost of manufacture the item and the cost of marketing. This total is then just marked up by about 15-30% to get the price at which it can be sold profitably. But for diamonds the process of pricing is rather complex and involves a whole lot of factors.

To determine the price of a diamond, you first add the price of the rough diamond and the price of cutting it as well as the various other costs that are involved so that the rough diamond can be turned into a diamond that can be marketed. According to the value of the diamond, sometimes an independent company is sometimes called in for certifying the diamond grade, which is based upon its weight, clarity, cut and color.

This is when the price of the diamond keeps getting higher as it goes from one hand to another and when the retailer finally gets his hands on it, he raises the price up even more before selling it. However, before it gets to the retailer, the diamond has a long journey starting at the mine, from where it goes to the cutter and then to the polisher and the independent grading company until it finally reaches the Primary market. When it reaches the primary market, wholesalers and diamond dealers purchase these diamonds and then sell them off to the retailers. You can expect to pay less when you buy a diamond earlier in the process.

However, the value of the diamond is based on how much it can be sold for in the shops through a retailer. If you do not know how much the diamond you own is worth, even if you get it appraised, there is no guarantee that the appraisal is accurate. If is better for you to get a certificate from the Gemological Institute of America (GIA). With a combination of the information contained on this certificate and a cutter’s guide you can determine more accurately the value of your diamond.

You could also use a diamond price calculator, which is commonly used by diamond dealers. However you should know that in order to evaluate your diamond more accurately you should know a few things about diamonds including the color, clarity, weight and cuts and how each one makes a different to the value of the diamond.

In this respect a Diamond Grading Report can be quite helpful. The information contained within can be used and checked against the any guide that is used by the diamond cutting industry. This is the best way to make an accurate evaluation of any diamond that you own or are thinking of buying.