The price of a diamond will depend upon a combination of factors:
First, its size or weight, which is measured in carats.
How well the diamond is actually cut and therefore how well it sparkles.
Its colour - whether it's a bright white stone or dull yellow.
Its clarity - how many inclusions or marks the diamond has.
Examples of How Diamond Quality Affects Ring Price
0.4 carat, clarity SI1, colour G, cut Excellent
0.5 carat, clarity VS2, colour G, cut Excellent
0.75 carat, clarity VS2, colour G, cut Excellent
1.0 carat, clarity SI1, colour F, cut Excellent
Diamond Price - External Forces
Diamond prices are partly affected by natural forces: Formed over millions of years by extreme heat and pressure, diamonds reflect the beauty and miracle of nature. Mining them is an expensive process, and the large majority of mined diamonds are suitable only for industrial purposes. This leaves a small percentage of gem-grade diamonds to be cut and fashioned into jewellery, and this rarity is a key factor in why a diamond is so valuable.
Price is also affected by human influence. Economies of supply and demand impact on market prices, and the ever important factors of cut quality and carat weight, as determined during the cutting process, also help determine the price a diamond can command.
Budgeting For Your Diamond Engagement Ring
The popular guide when purchasing a diamond engagement ring is to spend approximately two months' salary. More practically, though, you should not spend more than you can comfortably afford.