Last Updated on 14/08/2020 by Above Diamond
Last Updated on 20/09/2020 by Brooke Potduang
A guide to evaluating the costs of an engagement ring
If you are looking for an engagement ring in a jewelry store, the first question that comes to mind might be “How much is this engagement ring?” and “How did they come up with this price?”
It would be better if you could estimate the cost of an engagement ring by yourself before deciding to buy it from the shop. It will make you understand the true value of each engagement ring and you will also be able to buy the engagement ring with the best value.
Evaluating the cost of an engagement ring is made up of many different sections – sections such as the diamond on the ring setting and the actual ring itself. The evaluation process is as follows.
Step 1 Evaluate the Price of the Diamond
In evaluating the price of a diamond, you will have to base it on the quality of the diamond itself. This is what will dictate its price in a wholesale and second-hand market when you want to get rid of the diamond.
1. Using the 4Cs/Certificate
The quality of a diamond can be gauged by using the “4Cs”, it is an important principle which will tell you if the diamond is of high quality – or not. The 4Cs include Color, Clarity, Cut, and Carat.
If the diamond you are buying comes with a certificate, it will tell you the value and grade of the diamond and also the different qualities your diamond has. It will help you to easily evaluate the cost of the diamond.
Read more: How to read a GIA diamond report like a pro
2. Check the Diamond’s Market Price
With this method, you will be able to check the price of the diamond directly from the market. Using the information you have on your diamond’s specifications such as Carat, Clarity, Color, and Cut.
You can easily search for the price on the internet by yourself which can help you to easily evaluate the cost of your diamond.
You can check Prices of diamonds
Step 2 Calculate the Value of the Ring
The composition of a ring also plays a part in the cost of an engagement ring. The value of the ring itself depends on the metals which were used in making it.
1. Check the Ring’s Material Type
Firstly, you should check the type of material your ring is made from. For example, your ring might be made from gold, white gold, or platinum.
2. Check the Purity of the Material
Next, you should check the “karats” or K of your gold or platinum ring’s material. It will tell you the percentage of the purity of the metal, the higher the karat – the higher the ring is valued at.
An Example of Evaluating the Cost of an Engagement Ring
Let’s take a look at an example: if you have a diamond engagement ring with the ring itself made from 18k gold, weighing at 8 grams. The diamond is round-shaped and weighs at 1 carat with a clarity grade of VS2, a color grade of H and the cut is in the “Very Good” grade. How much will the engagement ring cost?
Before all else, calculate the price of the ring first. If the gold ring weighs at 8 grams with a purity of 18 karats, it means that 75% of the ring is made up of gold (There are 18 parts of gold from 24). Therefore, the volume of gold you have is equal to 6 grams (8 x 75%). Then you can try comparing it to the price of gold in the market.
Back to the diamond itself, we can evaluate its price by taking its specifications and look up its prices online. For a round-shaped diamond of 1 carat with the clarity of VS2 and H color grade, there will be a comparison table for you to take a look at.
Therefore, once we have calculated the value of both parts of a diamond ring, we can then combine the prices together to find its value. I want you to keep in mind that is just a rough estimate, at the shop, there might be additional costs (labor and processing fees) added to the price. This is why the cost of the engagement ring at the shop will more or less vary from the market value.
The Cost of an Engagement Ring Depends on Quality
It can be said that evaluating the cost of an engagement ring is quite straight-forward because it is mainly based on the diamond itself and its ring setting. You can reference the price of the market and so the higher quality your engagement ring is, the higher cost it will have. If you have any other questions on the evaluation of an engagement ring, you can talk to us “Above Diamond” at any time.
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