How Are Diamonds Valued?


On the market for a diamond? Chances are that you’ve already covered all your bases and know all the different diamond prices across all the different retailers. It’s easy to understand why diamonds of a bigger carat price higher than the one with a smaller carat. However, have you wondered what causes the price disparity between 2 diamonds of similar carat weights? Well read on as we discuss on how diamonds are valued.


One of the first things people learn about diamonds is that all diamonds are unique. Just like fingerprints, no two diamonds are equal. Diamonds come in many sizes, shapes, colours, and with various internal characteristics.

All polished diamonds are valuable and their value is distinguished based on a combination of factors. Rarity is one of those factors. Diamonds with certain qualities make them more valuable than others that lack them.

To evaluate a diamond’s value, diamond professionals refer to the grading system developed by the GIA (Gemological Institute of America) which established the use of the 4Cs: Colour, Clarity, Cut and Carat weight to describe and classify diamonds. Click here to get a clearer understanding on LUXIEE’s important 5Cs.


Clarity is the relative absence of blemishes and inclusions. Blemishes refers to scratches and nicks found on a diamond surface whereas inclusions are found on the inside. Like the rest of the 4Cs, clarity influence on a diamond’s value is directly related to the concept of rarity. The top grade in the GIA clarity grading scale is “flawless”. A diamond is graded flawless when there are no traces visible when examined under 10x magnification by a skilled and experienced grader. 


A diamond’s cut determines how light performs when it enters a diamond. Diamonds with different proportions and good polish are able to make better use of light which will in turn make it look bright, colourful and scintillating. As such, a diamond with an “excellent” cut will value higher than a diamond that is graded with a “very good” cut. Cut is also used in describing fancy cut diamonds.  The commonly known fancy cuts are the cushion, princess, emerald, oval and heart; amongst others.


Minute differences in a diamond’s colour can dramatically affect its price point. Two diamonds of the same clarity, cut and weight can differ in value based on colour alone. Diamond colours range from colourless to light yellow and brown. Within that range, colourless diamonds are the most rare and therefore the most valuable. They set the standard for grading and pricing of the other diamonds within the normal colour range.


Many goods are sold by weight. Those who have never bought a diamond are used to the idea that weight has an effect on pricing. The same concept is applied to diamonds, except instead of pricing it based on kilograms, diamonds are priced based on carat. It is a really simple concept: Diamonds with a heavier carat are rarer and therefore valuing higher than a diamond of a smaller carat. Visually while the difference between a 0.98 carat and 1 carat diamond is almost impossible to tell apart, many still opt for the diamond with a heavier carat.

Purchasing diamonds are now easier than ever. Get your diamonds at its truest cost at LUXIEE now! Choices are endless with over 100,000 GIA certified diamonds of different shapes and sizes at your disposal.