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Diamond Price Formula:
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Diamond wholesale pricing involves calculating the market value of diamonds based on carat weight, current market rates per carat, and quality factors that account for the diamond's cut, color, clarity, and other characteristics.
The calculator uses the diamond pricing formula:
Where:
Explanation: The formula accounts for the base carat weight multiplied by the current market rate, adjusted by quality factors that can significantly impact the final price.
Details: Accurate diamond pricing is crucial for wholesale transactions, inventory management, insurance purposes, and ensuring fair market value for both buyers and sellers in the diamond trade.
Tips: Enter diamond carat weight (typically 0.01-10+ ct), current market price per carat, and quality factor (0.1-3.0 based on diamond quality). All values must be positive numbers.
Q1: How is the quality factor determined?
A: Quality factor is based on the diamond's 4Cs - Cut, Color, Clarity, and Carat weight. Higher quality diamonds command higher factors.
Q2: Where can I find current price per carat rates?
A: Current rates can be found through diamond price lists (Rapaport Price List), industry publications, or market analysis reports.
Q3: Do larger carat weights have different pricing?
A: Yes, price per carat typically increases with carat weight due to rarity, especially at milestone weights (0.5ct, 1ct, 2ct, etc.).
Q4: How accurate is this calculator?
A: This provides a wholesale estimate. Actual prices may vary based on market conditions, certification, and specific buyer-seller relationships.
Q5: Should this price be used for retail pricing?
A: No, this calculates wholesale prices. Retail prices typically include additional markups for overhead, profit margin, and other business costs.