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Archive for June 14th, 2006

Price of Diamonds

Wednesday, June 14th, 2006

Price of DiamondsThe price of diamonds does not fluctuate very much. Mostly it is determined by the steady issue of diamonds from such companies as De Beers, the largest issuer of diamonds. Diamonds tend to be stockpiled in order to keep the price up

The first recorded diamonds were first found in India and then, in the 1700s in Brazil.

Hugh diamond fields have been found in Siberia but the most well know of course is the South African deposits in the Kimberley Fields.

Smaller fields are located in Arkansas, USA and other areas with Canadian deposits now approaching notable numbers recently.

Like many things, the price of diamond is determined by supply and demand. De Beers has been active on a policy of creating demand while limiting supply in order to drive the price if diamonds up.

This has worked to well with such phrases introduced into our society as, ‘A girls best friend is a diamond’. That phrase and the concept of diamond engagement rings can be directly traced to smart marketing by De Beers.

The actual price of a diamond is determined by the 4C’s Cut, clarity, color and carat weight. Probably the cut is the most important with color and clarity coming second and carat weight third.

The cut should be done to produce the maximum brilliance and sparkle from the diamond and a princess cut is considered one of the best for this.

The color and clarity determine the quality of the diamond and the carat weight is how much the diamond weighs. This is last in line as if the quality of the diamond is poor yet larger in carat weight than a excellent quality diamond then it will still be worth considerably less.

Checking the 4Cs as given in the links on the right will help to determine the right price for a diamond and ensuring that you have a appraisal from an independent laboratory will help to ensure you do not pay more than a diamond is worth.

It pays to do some study and really understand how diamonds are graded. Then you will be sure to understand the price of diamonds.

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