Diamond Ring Carats: How to Determine What You Can Afford

By: Carl Bond Click author's name for more of his/her articles

Diamonds are known and loved for their beauty and brilliance. They are also the hardest stones on the planet and are equally valued for their role in jewelry and their many uses in manufacturing. As such, diamonds don't come cheap, which explains why for many people, buying a diamond takes time and consideration. If you're wondering how much you can afford in terms of diamond ring carats, here are tips you can use to guide you on your purchase.

Understanding how diamonds are cut and sold
The term 'carat' actually refers to the weight of the stone, whether it's been cut or is still in its raw state. Among jewelry makers and buyers, the correct term used is 'carat weight'. When you go out to a jewelry store or browse diamond rings online, you will encounter this word. What it means is quite simply, the weight of the stone.

What carat means to you
You might probably think that a diamond ring with say, 2 carats is more valuable than a ring with 1 carat. In general, this is true. However, there are other factors that determine the final value (and price) of the diamond ring – that will ultimately help you decide whether or not you can afford the ring.

Of course, there is also the matter of setting. Diamond rings are generally set in gold, white gold or platinum. The type and quality of the precious metal used will also add to the price of the diamond ring. Platinum, for example, is more expensive than white gold. So if you're asking how much diamond ring you can afford in terms of carats, you might also want to consider how much setting in terms of carats you are willing to pay for.

In general, diamond ring settings may be made with 10 to 18 carats precious metal. The more expensive ones may also use as much as 22 carats. Remember that the higher the carats of the setting, the higher the price of the diamond ring. If you're choosing between a diamond ring set in 14 carats and one set in 18 carats, the price difference can range from about $200 to $250.

How much is a carat?
A diamond ring carat usually begins at .25 or 1/4 carat, although you'll probably find stones that are less than this. Set in 10 carat gold, this much stone will cost from about $125 to around $250. In 14 carat gold setting, the price could go up to about $500. A half-carat diamond set in 18 carat gold or platinum could go as high as $1000. A one-carat diamond

So how much diamond ring in carats can you afford? That really depends on what you want to buy and how much you can afford. Do not buy a 4-carat diamond ring you don't like just because you want to show off. In the end, it may not hold as much value for you. Furthermore, it may or may not turn out to be a good investment. Use the information you have learned and of course, your good judgment.