The Value Of Diamonds Over Time

With persistent economic growth the value of a diamond has grown with it.

The value of diamonds over time.

Color clarity cut and carat weight. How much or how quickly it appreciates is a more complicated question. When discussing the value of diamonds the most important factor of all is that the category of diamonds needs to be divided between colorless and fancy color diamonds. A 0 5 carat diamond may cost 2 500 per carat.

To determine the price of a diamond you need to look at the 4cs. Prices update monthly this round diamond price chart shows changes in diamond prices over the past few years for different sizes. Like most valuable items diamond prices increase with inflation. Note the price dip late 2008 the economic crisis and recent stabilization or even rises.

The value of diamonds is determined by their characteristics also known as the 4 c s color cut clarity and carat weight. Different shapes also are priced differently. Price of 2 carat diamonds. The uncommon and alluring gemstone has been around for a long time and it has kept its high value since its discovery.

Diamond price chart for round diamonds. Analysis and performance development of diamonds over the last 55 years. A diamond s value appreciates over time. 1960 to 2016 index data tracking the historical diamond prices changes up to actual prices.

Data shows the prices of diamonds over the past ten years have increased by approximately 32 33 giving it an average of 4 every year. Diamonds under 4ct never rose as much nor fell as far. There is no simple equation to determine the price. A 0 25 carat quarter of a carat diamond with the same color and clarity grades as above costs around 1 600 per carat making the price of the diamond approximately 425.

Since then the diamond price has increased more than tenfold to 29 650 u s. A diamond that was purchased in 1970 would of course be worth considerably more in 2016. Diamond prices increases about 14 each year since 1960. No two real diamonds are.

The answer like most diamonds isn t flawless. There is no magical mathematical formula to calculate the price of a diamond. The price of that diamond would be 1 250 2 500 0 5. The price of a 2 carat diamond ranges from 6 500 to 55 000 depending on the diamond s cut quality clarity color and shape.

While the overall health of the economy influences the prices of diamonds in general this gemstone has gained value over the years. Yearly increase of diamond prices and value 14 47 from 1960 to 2016 or equal to yearly compound interest of 4 3. In 1960 the average price for such a diamond stood at some 2 700 u s.