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The Impact of Diamond Carat Weight on Diamond Valuation
You'll have heard a stone referred to as, say, a one carat diamond. Curious though it
sounds Diamond Carat weight is the way that the all-important size of a diamond is expressed.
Carats have long been used as the unit of measurement when
weighing a diamond. The weight of a diamond is also a key factor in determining its value,
along with color, clarity
and cut. It is important to understand the concept of diamond
carat weight because unlike the application of weight in valuing most commodities the relationship
is somewhat more complicated.
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As there is a direct relationship between size and rarity - the value of a diamond
rises significantly with size and it is NOT a simple linear relationship, for this very
reason. In other words - 2 half-carat diamonds would be worth considerably less
than a one carat diamond, even though the total weight might be the same, and both
smaller diamonds would have to be independently cut (this is assuming that color
and clarity of all the gems were equally good). This means that unlike some weighed
goods there is no set price per carat. The value of a carat varies with size, and as
larger diamonds are so rare the difference in price is substantial!
A diamond carat weight, abbreviated as ct., is equivalent seven thousandths of an
ounce, or in metric terms, two tenths or 0.2 gram, which can also be expressed as
200 milligrams. The formal method of measuring a diamond's weight requires that
they be weigh to one thousandth of a carat, and then the weight is rounded off to the
nearest one hundredth of a carat.
What's the 'Point'?
Each one hundredth of a carat is called a 'point'. Any stones that weigh less than a
carat are therefore often referred to in terms of their points in weight. If a diamond
weight half a carat, or 0.5ct, it would also be said to be 50 points. Small diamond of
less than 15 points are called melee (rhymes with 'smelly'!) and they are frequently
used in small decorative groups within a jewelry setting around a main larger stone.
Popular sizes of cut diamond used in typical diamond rings and jewelry designs are
quarter, half and three-quarter carats. The 'magic' one carat weight brings with it a
premium price, for even if a diamond is only 1 point off the full carat, and looks to all
intents as big and is as well cut, colored and clear there will still normally be a large
price differential!
Whilst the size of a diamond is a significant factor in determining value, a large
diamond with poor clarity, less favored color, and/or roughly cut would not be worth
as much as a much smaller diamond that was flawless, or very high quality - and
both clear and well cut. Every diamond's value is attributable to 'the sum of its parts'
which is calculated on the basis of the grade, quality and size of the diamond as
expressed in terms of the famous FOUR C's - Color;
Clarity; Cut and Carat weight.
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