When it comes to pricing most products, you must first of all know the cost of making the item and the marketing cost of the item. Then you can mark the price up by 15 – 30% or more. The pricing of diamonds, however, isn’t quite that simple. You have to take into account several factors before pricing the diamonds.

To determine the price of a diamond, you have to consider the cost of the rough diamond, the cutting cost of the diamond, and additional costs necessary to transform the crude diamond into a marketable diamond. An independent company may certify the diamond’s grade depending on its cut, color, clarity, and weight.

The diamond becomes very expensive each and every time it changes hands, until the time it reaches the hand of a retailer who can raise its price a little more. The diamond travels from the mine, to the cutter and polisher, to the independent grading company and the primary market before reaching the retailer. It will be bought by diamond wholesalers and dealers after it has reached the primary market. From there it gets sold to retailers.

The cost of the diamond can be lower if you purchase it earlier – but not the value. The value of the diamond depends on its selling price in the market place through a retailer.

If you do not know the true value of a diamond that you own, you can get it appraised, but this may not be accurate. You can also get a certificate through GIA – the Gemological Institute of America. You can know the true value of your diamond by using the information on this certificate and the cutter’s guide.

Diamond price calculators are also available in plenty. You can find details about this online and many diamond dealers use these as well. You must understand that you need to have accurate knowledge of diamonds before you can price a diamond without a Diamond Grade Report. You must know all about the different cuts, color, clarity, and weight – and how these factors can add value to a diamond, or minimize its value as the case may be.

It pays to get a Diamond Grading Report on the diamond and use those details to understand the exact price in the diamond cutting guides. This will enable you to know the true worth of the diamond you currently own or of the diamond which you are planning on buying.