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The Magic Numbers of Pricing

Some content on this page are contributed by Good Old Gold, with thanks.

When buying a diamond, it pays to know that prices jump at certain carat weights we shall call 'magic numbers'. These price jumps are caused by the imperfect way diamonds are priced.

Every week, various diamond price reports are published by people with superior information. They base these reports on their research and interaction with the market. Hence they are able to publish the prices (per carat) of diamonds given certain qualities the diamonds possess. The most widely used price reports are the Rappaport Price Reports.

As diamond prices increase exponentially with their carat weight, it is necessary to give a breakdown of the prices by carat weight categories. These weight categories are segregated at precisely the 'magic numbers'. So, prices jump at those points.

The magic numbers are as follows:

... and every 0.5ct increase thereafter.

So, if you are looking for a 1 carat diamond with certain qualities, perhaps it would make more sense to settle for one that is 0.99 carat? The price would fall substantially if it is immediately below a magic number, which would translate to a large saving for you. Diamonds which just falls short of the magic numbers offer the best value!

Besides the magic numbers, there are also premiums ranging from 7-12% on carat weights that are in high demand. Examples of this would be diamonds in the 0.8Xct range, 0.95-0.99ct, 1.25ct-1.49ct and 1.70ct-1.99ct. There is no reason why you should compete for diamonds in these ranges.You would be spared of these premiums if you could avoid these ranges.

 

 
     

Next: Tips on Carat Weight...