Understanding Carat-weight: How it plays a major role in deciding the price of the diamond?
People often think that the Carat of the diamond and the Karat of the Gold are same. But this is not the case. Carat is the weight of the diamond while Karat of Gold implies its purity. So let’s not get confused.
Carat like the dollar is divided into 100 points or cents. So one-fourth of a carat is written as 0.25 carat or 0.25-cent or one-fifth of a carat is written as 0.20-carat or 0.20-cent.
This is how Carat converts into gram in weight measurement.
0.50 carat =0.1 gram,
1 carat =0.2 gram
5 carat = 1 gram.
Does more carat weight mean a larger diamond? Not really!
Remember a larger diamond means a bigger diameter.
An interesting but very important thing about diamond’s weight is its weight to size ratio. Diamonds size is measured by its diameter or dimension. The larger the diameter the bigger it looks.
People often think that a 1.00-carat diamond must be double the size of a 0.50-carat diamond. This is not the case. A 0.50-carat ideal cut diamond’s diameter is 5.2 mm while the diameter of a 1.00 carat (ideal cut) diamond is 6.5 mm. The difference is only 1.3 mm. That means it is only 25% larger in size, not 100% as we may assume. Sounds interesting!
Have a look at the following images and see for yourself how bigger a diamond may look in different carat weights.
Diamond’s price is calculated on per carat basis. Carat weight plays a significant role in determining the price. As larger size diamonds are less in supply and more in demand, the price is exponentially high in carat to price ratio.
For example, if a 0.50-carat diamond’s price is $4000 per carat then a 1.00-carat diamond’s price is around $6000.(All other parameters remain same) Now see the difference in cost.
The price of a 0.50-carat diamond is $2000 while the price of a 1.00-carat diamond is $6000. So the price of a 1.00-carat diamond is not twice the price of a 0.50-carat diamond (as we assume) but three times higher. That’s why bigger the diamond, higher the price is. I hope you get the point.
Carat-weight Vs Diamond’s Price
Look at the real price of the diamond of different carat weights and see the huge price differences as the diamond gets bigger.
Remember one important point here. Try not to go for a round figure weight like 1.00 carat, 1.50 carat or 2.00 carat. Because it costs 10 to 20 percent more than the price of a 0.97 carat, 1.47 carat or 1.97-carat diamond.
In ‘Saving Tips on Carat weight’ chapter I have given some amazing tips so that you can save money by following it without compromising on the size of the diamond. So do read the Chapter carefully.