Rarity and Value

Even though new diamond exploration, including in Canada, has greatly added to the supply, the diamonds produced are continually bought up. Periodically, the industry will experience shortages of certain sizes, shapes, or qualities. As diamonds get larger, they are rarer and therefore more valuable. Two diamonds of say one half carat each of a particular color and clarity will cost considerably less than one diamond of one carat even though they both have the same total weight. The diamond grading scale is also factor in rarity and value. Diamonds of very high color and clarity are much more rare than diamonds of lower color and clarity. Therefore, the price can be astoundingly different for two diamonds that are the same size but have differences in quality grades.