What affects the cost of diamonds?

The internet has served as a major advantage to consumers when it comes to buying a diamond engagement ring. It has given the public access to thousands of diamond options right at their fingertips and at real-time prices. Below we’ll outline one of the factors that affects the cost of diamonds.

The center diamond makes up the majority of the cost of an engagement ring. Since diamonds on the world market are all base-priced in U.S. dollars, the main factor you want to keep an eye out for are foreign exchange currency rates against the U.S. dollar. If the currency from the country you reside in is up against the U.S. dollar then you should be able to buy your center diamond at a lower price and therefore save money overall on your engagement ring. If the currency from your country is down against the U.S. dollar then the opposite would hold true.

Based on our business model and the fact we operate in Canada, the best time for our clients to buy an engagement ring is when the CAD dollar is up against the USD dollar on the foreign exchange currency market. The exchange rate is just one factor that affects the cost of diamonds, but we’ll touch on them during a different time.