The Value Of Diamonds Over Time

There is no simple equation to determine the price.

The value of diamonds over time.

The uncommon and alluring gemstone has been around for a long time and it has kept its high value since its discovery. 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. Like most valuable items diamond prices increase with inflation. The value of diamonds is determined by their characteristics also known as the 4 c s color cut clarity and carat weight.

A diamond that was purchased in 1970 would of course be worth considerably more in 2016. To determine the price of a diamond you need to look at the 4cs. 1960 to 2016 index data tracking the historical diamond prices changes up to actual prices. In 1960 the average price for such a diamond stood at some 2 700 u s.

Diamond prices increases about 14 each year since 1960. No two real diamonds are. 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. Overall the answer is yes.

Yearly increase of diamond prices and value 14 47 from 1960 to 2016 or equal to yearly compound interest of 4 3. How much or how quickly it appreciates is a more complicated question. There is no magical mathematical formula to calculate the price of a diamond. 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.

Different shapes also are priced differently. Color clarity cut and carat weight. Diamond price chart for round diamonds. With persistent economic growth the value of a diamond has grown with it.

Note the price dip late 2008 the economic crisis and recent stabilization or even rises. While the overall health of the economy influences the prices of diamonds in general this gemstone has gained value over the years. The price of that diamond would be 1 250 2 500 0 5. Since then the diamond price has increased more than tenfold to 29 650 u s.

A diamond s value appreciates over time. The per carat cost increases as the weight and quality increases. Diamonds under 4ct never rose as much nor fell as far. Analysis and performance development of diamonds over the last 55 years.

Prices update monthly this round diamond price chart shows changes in diamond prices over the past few years for different sizes. The answer like most diamonds isn t flawless. The value of diamonds.