Yearly increase of diamond prices and value 14 47 from 1960 to 2016 or equal to yearly compound interest of 4 3.
The value of diamonds over time.
To determine the price of a diamond you need to look at the 4cs.
The value of diamonds.
Since then the diamond price has increased more than tenfold to 29 650 u s.
Prices update monthly this round diamond price chart shows changes in diamond prices over the past few years for different sizes.
The value of diamonds is determined by their characteristics also known as the 4 c s color cut clarity and carat weight.
A 0 5 carat diamond may cost 2 500 per carat.
In 1960 the average price for such a diamond stood at some 2 700 u s.
The per carat cost increases as the weight and quality increases.
1960 to 2016 index data tracking the historical diamond prices changes up to actual prices.
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.
Note the price dip late 2008 the economic crisis and recent stabilization or even rises.
Analysis and performance development of diamonds over the last 55 years.
Diamond price chart for round diamonds.
Overall the answer is yes.
Like most valuable items diamond prices increase with inflation.
A diamond s value appreciates over time.
Diamond prices increases about 14 each year since 1960.
The price of that diamond would be 1 250 2 500 0 5.
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.
There is no magical mathematical formula to calculate the price of a diamond.
The answer like most diamonds isn t flawless.
There is no simple equation to determine the price.
While the overall health of the economy influences the prices of diamonds in general this gemstone has gained value over the years.
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.
Color clarity cut and carat weight.
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.
How much or how quickly it appreciates is a more complicated question.
With persistent economic growth the value of a diamond has grown with it.
Diamonds under 4ct never rose as much nor fell as far.
Different shapes also are priced differently.