How Valuable Are Big Diamonds?

Imagine cradling an object in your hands, an object worth over $70 million. You are holding a piece of the Earth’s history - and one of its most prized, valuable treasures. Such is the case with the incredible Lesedi La Rona, the world’s biggest diamond. If you were fortunate enough to cradle it in your hands, you would be holding 1109 carats.

Lesedi La Rona (which means “Our Light” in Setswana) is a rare find and a singular one at that. It is the largest gem-quality diamond mined in over a century. Instead of being sold via private bid, Lucara Diamond, the Vancouver-based mining company that unearthed the stone in Botswana, hired renowned auction house Sotheby’s to put it out for public bid. The potential for this stone, when cut, is virtually unfathomable.

When it comes to the value of a big diamond, Lesedi La Rona is certainly unrivaled! But what about the value of a large stone for your business? It may not be 1009 carats - but it doesn’t have to be in order to increase your margins, elevate your offerings, and thoroughly satisfy your clientele.

What Is the Value of a Big Diamond?

This question is a bit like asking, “What’s the value of a car?” Or, “What’s the value of a house?” It, of course, depends on the quality and availability.

When it comes to the value of a big diamond, size is not the only factor at play. As you know, the other three C’s (cut, color, clarity) have a significant impact on cost. The massive Lesedi La Rona notwithstanding, large carat weight or size of a diamond does not necessarily make it more expensive. Instead, it is a culmination of all of these characteristics.

Here’s an example: if you have a one-carat brilliant cut stone with a color grade of D (completely colorless) and a clarity grade of VVS1 (very very slightly included), the cost is about $15,000, according to the current market.

Now, let’s say that this diamond is still a D but has an SI1 rating in terms of clarity (inclusions are noticeable under 10x magnification; they may even have an inclusion that is eye-visible). The same size, very different price points. As you can see, the cut, clarity, and color matter greatly when it comes to the cost, and value, of the diamond.

Is Rarity a Factor in the Value of Big Diamonds?

The Diamond Producers Association (DPA) uses the slogan, “Real Is Rare, Real Is a Diamond.” The message is that natural diamonds encapsulate the love between couples, the real emotion. However, too many, indicate that diamonds themselves are rare, and this is a factor in pricing.

Any polished diamond has value: how much is determined by the four c’s - (cut, color, clarity, and carat weight). Not all diamonds are created equal. Collectively, all four c’s contribute to the overall value and determine the final price.