What Makes a Gemstone Expensive? 8 Factors That Determine Its Price

The rubies may appear to be identical to one another in a photo. One ruby may cost a few thousand rupees while the other ruby may cost several lakh. They may have the same name and color, but this does not mean that their price would be the same.

If this seems confusing to you, you’re not the only one. Things related to gemstone prices feel like a different language until one learns the essential factors that gemologists and jewelers consider while pricing gemstones. There are exactly eight important factors. When one knows everything about these factors, he can understand gemstone certificates, compare two gemstones accurately and know when he is getting an excellent deal on gemstones.

This holds true whether one buys a diamond for astrological reasons, as a gift or a long term investment. Let us discuss each of these factors starting from the most important one.

1. Color Is The Most Important Price Factor

When it comes to colored stones, color is the most important factor in determining its value. Color has three elements: hue (the color itself), tone (how light or dark it is), and saturation (how bright or dull it appears).

In rubies, for instance, it is considered that the ideal color combination is the “pigeon’s blood” red. When it comes to blue sapphires, it is defined by a good velvety blue. To put it simply, an emerald deserves to be deeply bluish-green for it to be called an emerald. Too dark and the stone looks like ink. Too light and it appears to be washed out.

2. Clarity: What is Inside

Clarity is what tells us what occurs on the inside of the stone. The fewer and less visible features it has, the better. The less is visible from the surface without using any kind of magnifying tool, the more expensive the stone will be.

On the contrary, colored natural gemstones have different rules from those of diamonds. Sapphires and rubies are generally required to be relatively clean, while emeralds are practically always included, so their buyers accept them without a question. This is because the effects of inclusions on beauty and durability should be taken into consideration. A great emerald with minor inclusions is much more precious than a so-called “clean” stone whose color is dull.

Some inclusions are beneficial. In the case of sapphires, fine silky tubules can become an indication of the stone’s natural origin.

3. Cut quality: How well it is being shaped

Cut is not only about the shape of a stone. Good cut makes it possible for the light to enter the stone, reflect many times, and return to the viewer in the form of sparkle and color. In addition, the bad cut allows the light to leak from the bottom of the stone, creating a “window” effect.

However, here is the problem. When cutting colored stones, jewelers usually sacrifice proportions in order to keep the stone’s weight at a higher level.

Nothing better than beautiful and well-proportioned stones of 3 carats to prove more effective and prettier than messy stones of 3.5 carats. Browsing for symmetry, depth, and uniform spread of color while tilting stone is important.

4. Carat Weight: Size Does Matter, But Not in a Straight Line

Carat is a unit of measurement for precious stones: 1 carat equals 0.2 grams. It is also called ratti in India, which can range from slightly under 1 carat (around 0.9) to slightly more, but the exact measurements do vary from trader to trader.

Price increases with the weight, but in a non-linear manner. Large, high-quality stones are far harder to find than small ones, hence the price per carat rises with the increase in their size. Also, bump prices happen often with round numbers, hence a stone that shows one carat may be more expensive than one that shows just below that, for example, to the set of buyers for whom these things matter: that is, the weight in ratti that is indicated for you could fall just below or above a certain threshold, and you might want to raise or lower your budget slightly.

5. Place of Extraction

The location of extraction can greatly influence the value of a precious stone as certain regions are known for outstanding quality. As a result, collectors tend to pay more for certain types of gems, which include Burmese rubies, Kashmir sapphires, Columbia emeralds, and Paraíba tourmalines.

However, the value of a gem cannot solely be attributed to the location. A gem of poor quality from a well-known mine is still of poor quality. Moreover, please keep in mind that the origin of a gem can only be determined with the help of a gemological report. Simply taking the seller’s word on a “Burmese ruby” without any documentation would be foolish.

6. Treatment: Heating, Oiling, or Natural

Most gems available are treated in some way. Heating enhances color and clarity of rubies and sapphires, which has been done for centuries. Emerald gemstones are often oiled to conceal surface reaching fissures. This is not a big deal as long as it is mentioned.

What changes is the price because an untreated and unheated ruby or sapphire with good color is far more uncommon and it may go for quite a high price, several times more than an equivalent heated stone. The more serious treatments such as filling, diffusion, and coloring make the gem even less valuable. Always ask whether and what has been done and check if it is clearly stated in the laboratory report.

7. Rarity and Demand

Some stones are just rarer than others. Natural ruby stone, sapphire, and emerald are rare in size while amethyst and citrine have plenty of stones.

Demand is important as supply. Fashion trends, auction prices, and investor interest can cause increases in prices. In India, astrology plays an important role: when a planet is currently in a certain position, people start looking for blue sapphire, increasing demand for a good Neelam. Wedding season and gifting during festivals raise the prices of the gems.

8. Certification and Provenance

A jewel can only be honest if the paperwork is in order. A paper from a good laboratory, such as GRS, GII, IGI, or GIA proves that the jewel is genuine, tells if it is treated and gives information about the origin of the stone in the best laboratories. The presence of a certificate does not influence the color of a jewel but makes the purchase price more reasonable.

Uncertified stones usually have cheaper prices because the buyer bears all the risks. The jewels that had a proper certificate, especially NO HEAT report usually sell faster and with profit. Provenance brings value to antique and collectible stones.

How the 8 Factors Combine to Form the Buying Process

None of the eight factors can work by itself. A stone with a good place but poor color will not have value. A stone that possesses beautiful color and has been treated will have a lower price than an untreated stone with the same color. The most precious stones meet many criteria at the same time: the color is intense, has good clarity, proper cut, good shape, plenty size, reflected origin, no treatment, and the stone has trustworthy GIA report.

Not all consumers need all of their criteria to apply at the highest level. Follow the principle that fits your buying process. When buying for astrological reasons, such factors as natural origin and good color may be more influential in making a choice than the mine’s name.

Frequently Questions Asked

Which factor influences gemstone price the most?

Most of the time, it is the color of the stone. For top-tier gemstones, the source and whether they have been treated also matter a lot.

Is bigger gemstone always more expensive?

No, a large gemstone may have poor color and quality and therefore may cost less than another smaller one with better quality.

Do certification increase the gemstone cost?

They do not make the stone itself more expensive, but they make a stone certified by a reliable laboratory, thus making appropriately higher prices applicable.

Should unheated gemstones cost more than heated gemstones?

Yes, in most occurrences they should, as untreated gemstones are rare.

Final Thoughts

Gemstone pricing is not arbitrary. Instead, there’s an equation based on eight components you should be aware of: color, clarity, cut, carat, origin, treatment, rarity, and certification. When you know how to interpret those factors, you can figure out why a certain stone is more expensive than another and whether it worth it for you.