What is a major factor affecting the value of diamonds?

The value of diamonds is significantly influenced by carat weight, as it directly relates to the size of the diamond. Carat weight measures how much a diamond weighs, with one carat equaling 200 milligrams. Larger diamonds are generally rarer and more sought after, which tends to increase their market value. As carat weight increases, the price per carat can also rise exponentially, especially when the diamond is also of high quality in other grading aspects such as cut, clarity, and color.

While other factors can impact a diamond's price—like color intensity, clarity, and the location of purchase—carat weight is a primary determinant that plays a critical role in valuation. It’s important to note that while diamonds of the same carat weight can have differing values based on their other characteristics, carat weight is a foundational factor that buyers consider when determining a diamond's worth.