How a diamond’s cut and shape affects its price

When consumers look to buy a diamond, the main thing that interests them is the size. In fact, carat weight is the biggest determinant of a diamond’s value. However, there are other factors involved in the complex mechanisms of polished diamond pricing, including cut quality and shape. Let’s take a look at the how and why. 

How diamond’s cut affects price

The cut of a diamond is how symmetrical it is after polishing and is rated according to Good – Very Good – Excellent – Ideal Cut. Generally, a diamond’s cost per carat increases in-line with the quality of the cut. Why? Because when facets are polished, more rough material is removed to achieve better cut symmetry, proportions, brilliance, sparkle, beauty, and performance. The more amount of rough removed, the less the carat weight, so the diamond price is raised to offset the loss.

Additionally, prices need to cover the cost of skilled labor and the extra time it takes to achieve an ideal cut diamond. Ultimately, the driving forces behind each cutting choice is profitability and finances. In reality, it isn’t financially feasible for every piece of rough to be turned into an ideally cut diamond. Hence, the market is full of sub-par diamonds cut for weight preservation rather than beauty. The demand for these is driven by buyers needing to justify budgets and meet carat size expectations. Bottom line better cut rating means higher pricing.

How diamond shape affects price

Another factor that affects the end-price of a polished diamond is its shape. Shape is the appearance differentiator and its value is impacted by what’s trending in the market. Round diamonds are always in-trend for traditional engagement and wedding rings. Even second-hand round diamonds are sought-after and could fetch more than other shapes even if they have the same qualities.

As far as price goes, shape is a major determining factor for several reasons. Firstly, a diamond’s shape is its most visible characteristic. The price is affected by trends with more trendy shapes having a higher premium than less popular ones. Secondly, as with cut, manufacturers try to save as much rough. Therefore, the shapes that have the most loss of rough carat are most expensive. This is especially true for round brilliant cuts. In fact, rounds are generally around 10% – 20% more expensive than other shapes (fancy shapes: shapes other than round) in the same carat weight and quality. Diamond shapes with more carat weight in their depth also look deeper and smaller than others and are therefore cheaper. Fancy shapes include Princess, Cushion, Oval, Asscher, Heart, Emerald, Pear, Marquise, and Radiant. Non-traditional fancy shapes include Bullet, Trapezoid, triangular, and Half Moon.

Takeaway

When buying a diamond don’t only look at carat weight, especially if it’s meant as a special and meaningful gift. Cut and shape matter as you want a lively not dull-looking diamond. Also, if you’re on a budget, rather choose lower clarity or color grades and perhaps a less popular shape than compromise on cut quality as the better the cut, the more beautiful the diamond!

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