Diamond Price and its determinants
Project Overview
Everything in this world has a price. Precious and rare earth elements tend to have higher prices. Hence, being a rare earth element, diamond has its price, severely affected by quality and brilliance. In addition, the mining and processing of diamonds is an uphill task involving a highly skilled workforce and extensive work. By the time a diamond reaches a retail store, it has gone through a comprehensive supply chain. Every step in this chain has a cost, leading to comparatively high prices for most available diamonds in the marketplace. There are many factors affecting the price of diamond, for this project we will be considering Cut, Color, Clarity, and Carat. The excellence of each of these factors makes the difference in the price of a diamond.
The brilliance of a diamond is highly dependent on its cut. A poorly cut diamond will not have the desired return to fire and will look small because of its depth.
Carat is the weighing scale for any diamond: the greater the weight, the more expensive it will be. Diamonds that weigh below a full carat are generally cheaper than those weighing more.
The colors of white diamonds range from Colorless to Light Yellow. Being rare, colorless diamonds are the most expensive ones. There are 22 grades of diamond colors from D to Z: D is colorless and the costliest, while Z is the least desirable--light yellow or close to Yellow. For this project we will consider colors D to J.
Another factor affecting the price of diamond is its Clarity. Flawless diamonds are comparable to diamonds with \\\\\\\"eye-clean\\\\\\\" clarity in terms of costs because they are appreciated for having natural birthmarks for authentication purposes (ranging from VVS1-VS2). Eye-clean clarity means that the inclusions are unnoticeable with the unaided eye. Clarity grading determines the number of inclusions within a diamond. The number of natural flaws in a diamond determines the clarity grade. A diamond has two clarity factors: blemishes (external flaws, such as chips and scratches) and inclusions (internal defects, such as crystals and feathers).
Data Description
-Price: price in US Dollars ($326--$18,823)
-Carat: Weight of the diamond (0.2--5.01)
-Cut: Quality of the Cut (Fair, Good, Very Good, Premium, Ideal)
-Color: Color of diamond, from J (Worst) to D (best)
-Clarity: a measurement of how clear the diamond is (l1 (worst), Sl2, Sl1, VS2, VS1, VVS2, VVS1, IF (best))
-x length in mm (0—10.74)
-y width in mm (0—58.9)
-z depth in mm (0—31.8)
-Depth: total depth percentage = z/Mean(x,y) = 2*z/(x+y)(43-79)
-Table: width of top of diamond relative to widest point (43-95)
KPIs
-Average Price Per Carat
-Price Per Width
-Price Per Length
-Price Per Carat
Role:
Problem Statement
This project is designed to be an information source for any individual or company who is planning to buy or sell diamonds. It provides information on what to consider, like Carat, Color, Clarity, Cut; and depth and how the price is affected by these factors. I have added five slicers to show these relationships and also modified and re-arranged the KPIS according to your last Critique.
Executive Summary
Summary:
Everything in this world has a price. Precious and rare earth elements tend to have higher prices. Hence, being a rare earth element, diamond has its price, severely affected by quality and brilliance. In addition, the mining and processing of diamonds is an uphill task involving a highly skilled workforce and extensive work. By the time a diamond reaches a retail store, it has gone through a comprehensive supply chain. Every step in this chain has a cost, leading to comparatively high prices for most available diamonds in the marketplace. There are many factors affecting the price of diamond, for this project we will be considering Cut, Color, Clarity, and Carat. The excellence of each of these factors makes the difference in the price of a diamond.
The brilliance of a diamond is highly dependent on its cut. A poorly cut diamond will not have the desired return to fire and will look small because of its depth.
Carat is the weighing scale for any diamond: the greater the weight, the more expensive it will be. Diamonds that weigh below a full carat are generally cheaper than those weighing more.
The colors of white diamonds range from Colorless to Light Yellow. Being rare, colorless diamonds are the most expensive ones. There are 22 grades of diamond colors from D to Z: D is colorless and the costliest, while Z is the least desirable--light yellow or close to Yellow. For this project we will consider colors D to J.
Another factor affecting the price of diamond is its Clarity. Flawless diamonds are comparable to diamonds with \\\\\\\"eye-clean\\\\\\\" clarity in terms of costs because they are appreciated for having natural birthmarks for authentication purposes (ranging from VVS1-VS2). Eye-clean clarity means that the inclusions are unnoticeable with the unaided eye. Clarity grading determines the number of inclusions within a diamond. The number of natural flaws in a diamond determines the clarity grade. A diamond has two clarity factors: blemishes (external flaws, such as chips and scratches) and inclusions (internal defects, such as crystals and feathers).
Data Description
-Price: price in US Dollars ($326--$18,823)
-Carat: Weight of the diamond (0.2--5.01)
-Cut: Quality of the Cut (Fair, Good, Very Good, Premium, Ideal)
-Color: Color of diamond, from J (Worst) to D (best)
-Clarity: a measurement of how clear the diamond is (l1 (worst), Sl2, Sl1, VS2, VS1, VVS2, VVS1, IF (best))
-x length in mm (0—10.74)
-y width in mm (0—58.9)
-z depth in mm (0—31.8)
-Depth: total depth percentage = z/Mean(x,y) = 2*z/(x+y)(43-79)
-Table: width of top of diamond relative to widest point (43-95)
KPIs
-Average Price Per Carat
-Price Per Width
-Price Per Length
-Price Per Carat
Data Dictionary
Key Takeaways
On Progress
Next Steps
On Progress
Deployment
On Progress
