If your search for the perfect diamond has begun, you have no doubt spent hours of confusion navigating the alphabet soup of VVS-2, SI-1 GH, IF, DE, the four c’s and all the other myriad combinations of letters and numbers that have a huge impact on a diamonds price. Here are some fascinating diamond facts as well as information on the importance of diamond carat weight and color and how they affect diamond prices.

Diamond mining originated in India. Prior to the discovery of diamonds in Africa in 1867, these gems were extraordinarily rare available only to royalty and the upper classes. Diamonds are formed under intense heat and pressure deep within the earth in a specific type of volcanic pipe called kimberlite. Volcanic eruptions forced diamonds out of their dark hiding places and many diamonds have been recovered from streams and river beds. These are called alluvial diamonds. Other diamonds settled back into the kimberlite pipes. Recovering diamonds from kimberlite involves mining.

One of the most important factors that affect the price of a diamond is the carat weight. Carat is a unit of measure that derives from the carob bean, which is extremely uniform in weight. Early diamond traders in the Mid-East used the carob bean as the standard unit of measure for determining a diamond’s weight. Larger diamonds are rarer and command a higher price per carat. A good quality diamond of a half-carat may cost $1,000.00-$1,500.00 while a full one carat may be closer to $5,000.00 to $6,000.00. A good quality two-carat diamond will fall into the $16,000.00-$20,000.00 range.

Color is another important consideration when diamond shopping. Aside from irradiated colored diamonds, most color in diamonds is caused by elements and gasses present when the diamonds are formed. The closer to colorless the diamond is, the more expensive it will be. A fine quality one-carat near colorless diamond may cost upwards of $7,000.00, while a true colorless diamond of the same weight and clarity will be well over $10,000.00.Keep in mind that color in diamonds is difficult to detect. Taking two sheets of white paper from different sources and noticing the subtle contrast between them is a good way to familiarize one’s self with how faint the gradations of diamond colors can be. Tiny differences will have a substantial impact on price.

Understanding how carat weight and color affect diamond prices will help you determine your diamond buying budget. Once you decide on the criteria most important to you, you will have an informed idea of what to look for in making your engagement ring dreams come true.

Sources: Williams, Gardner F. Discovery of Diamonds In Africa, http://history-world.org.
Diamonds.  The Gemological Institute of America, 1984.