What Makes Diamonds So Valuable?

Diamonds are a gesture of love.

In ancient times, Greeks thought diamonds were splinters from stars, fallen to the earth, and until the 15th century, only kings wore diamonds, which represented strength and courage, according to diamond merchant Diamond Trade. The meaning evolved to symbolize love, and the tradition of wearing the ring on the third finger can be traced to the Egyptians, who believed a love vein ran through that finger of the left hand. There are several factors that affect a diamond's value.

Rarity

The diamond is the hardest of all gemstones. Diamond ring image by nata_rass from Fotolia.com

The diamond is the hardest and simplest of all gems, formed from carbon billions of years ago beneath the earth's surface. Just 350 tons of diamonds are estimated to have been mined throughout history, according to Diamond Trade. The gemstones are mined in more than 20 countries, yet only about half of those mined are deemed to be of gem quality; it takes 250 tons of ore to yield a 1-carat diamond of gem quality, according to Diamond Trade.

Carats

A diamond weighing several carats is worth more than several smaller diamonds of like quality. diamond ring image by Julianna Olah from Fotolia.com

According to Jewelry Central, which sells diamonds and provides advice on diamond buying, the four C's, or carats, clarity, color and cut, can guide you in determining the worth of a diamond. The value of a diamond rises with carat weight, because larger diamonds are rarer than smaller ones. A diamond weighing 4 carats is worth more than four 1-carat diamonds of like quality.

Color

The most valuable diamonds are colorless. solitaire diamond ring on velvet image by robert mobley from Fotolia.com

The most valuable diamonds include colorless and nearly colorless, according to Jewelry Central. Most diamonds might not seem to have any color, but when viewed through a loupe, or jeweler's magnifier, they are shown to have a yellow or light-brown hue. For stones of a certain size, the difference from one color grade to the next can translate into thousands of dollars. Diamond color is graded with letters, with those deemed D, E and F the most valuable and D being the rarest.

Clarity

The fewer the imperfections, the more valuable the diamond. valentine"s day gift image by Katrina Miller from Fotolia.com

A diamond's clarity is determined on a scale of five categories that take into consideration the amount, location, type and size of the gem's imperfections, or inclusions, which are traces of minerals in the stone that are visible to the naked eye or through a jeweler's loupe, according to Jewelry Central. A diamond's worth increases as the number of inclusions decreases, resulting in a clearer and more brilliant stone. It is rare for a diamond to have no imperfections; those that are flawless are extremely valuable.

Cut

A diamond's cut affects its value. men"s diamond ring image by jimcox40 from Fotolia.com

A diamond's cut is the final step in gauging its worth. The cut affects its brilliance, with quality stones having facets in precise geometric proximity to one another; those whose facets have been cut disproportionately, or spread, to make them weigh more are not as valuable as those whose facets have not been spread, according to Jewelry Central.

References

• Diamond Trade: The History of Diamonds
• Jewelry Central: About Diamonds