Why do larger diamonds often have a higher price per carat?

• A. Because there are more inclusions
• B. Because heavier stones are less durable
• C. Because it reduces color
• D. Due to rarity

Answer: (D)

The amount you pay per extra carat rises because larger diamonds are much rarer to find. There aren’t many stones that reach bigger sizes while also maintaining high color and clarity, so the supply of desirable large diamonds is limited. When buyers want a big, high-quality diamond, they’re competing for the same scarce stones, which drives up the price per carat more than it would for smaller stones. Inclusions or durability aren’t the primary drivers of this per-carat jump; inclusions usually lower value, and durability isn’t the main factor that sets price per carat. Color can influence value, but the strongest reason larger diamonds cost more per carat is their rarity and the demand that rarity creates.