How the Price of a Diamond is Determined
Pricing many products for sale is generally quite easy. It goes something like this: Determine the costs of manufacturing, then the costs involved to market that item, and then mark it up by 15 – 30% or whatever the market can sustain. Simple, right? Well, pricing diamonds isn’t nearly that simple. Not at all. This is because there are so many additional factors that come into play when diamonds are priced. Diamond prices are determined first by adding the cost of the rough diamond, the cost of cutting the diamond, and all other costs necessary to turn the rough diamond into a something suitable for use in jewelry. Depending on the importance of the diamond, an independent company may be called in to certify the grade of the diamond based on color, cut, clarity, and weight. As every stage involves professionals who are paid for their work the diamond becomes more expensive each time it changes hands. When it finally reaches a retailer the price will as expected be r