Valuation of Gemstones, Diamonds and Jewelry

What are the principles of valuation of gemstones, diamonds and jewelry?

I will answer this question in two parts. In this post I will deal with the first part, which is “The principle of valuation in economics”.

In this post I will deal with the aspects of valuation that are relevant to gemstones, jewelry and diamond industry.

Summary of the principles of valuation in general

1)The per carat weight of a stone increases exponentially when the total weight of the gemstone increases.For example if the price of a 0.8-carat gemstone is 100 usd. Then a similar 3.5-carat gemstone of the same quality (similar physical properties like colour,transparency etc) might cost as high as 3500usd.