Understanding the Diamond Market

diamonds in a row

The current economic crisis has prompted many Americans to sell their used, unwanted or broken diamond jewelry and loose stones in exchange for hefty payouts. While real estate, stocks, bonds and other typical investments have declined, diamonds have maintained a steady value. By selling to online diamond buyers like Diamonds USA, you can get additional funds quickly and easily.


Determining the Price of Diamonds

It is more complex to appraise diamonds than it is to assay precious metals such as gold, silver or platinum. With metals, the assayer only needs to determine the weight and purity of the metal and the current market price. With diamonds it’s more involved than just looking at a diamond market price chart.

In the diamond industry, a stone’s value is based on the “four Cs”:

  • CARAT: The stone’s weight expressed in carats where 1 carat = 0.2 grams. The price per carat doesn’t increase proportionally as size goes up, but varies with established carat weights (a 4-carat diamond costs more than four 1-carat stones of the same quality). Small diamond weights are expressed in ‘points’ rather than percentage of a carat (a 0.4-carat diamond equals 4 points).
  • CLARITY: A diamond’s clarity can be affected by various types of imperfections such as cracks, small pockets, tiny bubbles or other foreign substances that are inclusions within the stone. A perfect stone is free of these.
  • CUT: The way a diamond is cut affects its ability to reflect light and its apparent brilliance. It does this by refracting light from facet to facet and then by finally dispersing it out from the topmost facet of the stone. The most valuable stones generally have the greatest brilliance.
  • COLOR: White diamonds, or those without any coloring, are usually considered the most valuable because they permit light to be passed through and dispersed as a rainbow of colors, much like a prism does. However, if a colored diamond is bright enough, it is considered a “fancy gemstone” and may have considerable value. Pink and blue stones are most valuable, but colored diamonds can also be found in yellow, green and black.

Carat, cut, color and clarity are all factors that our GIA-certified appraisers must take into account when appraising each stone we receive.

Watching Diamond Prices for Trends

The market price of diamonds refers to the average price per carat across a wide variety of appraised diamonds. Because there’s so much variation in individual stones, the value of a diamond market price chart is largely in its ability to show trends. When the average price is on the rise, it could be a good time for selling diamond jewelry.

Trends can indicate changes in consumer preference or supply and demand. If diamond production stalls, high demand and low supply can increase prices. If there are a surplus of diamonds but no one is interested, the price drops. Observing the market can inform all kinds of things, not just when to sell a diamond online.

Where Can I Sell a Diamond for the Highest Price?

If you’re wondering how to sell diamond jewelry, Diamonds USA can help. We’ll give you fair market value for your diamonds, no matter their quality or condition. Request your free Appraisal Kit today to find out how much your diamond jewelry is worth.