Carat refers to a diamonds weight. They are divided into 100 points.
For example, a one carat diamond weighs 100 points and a 1/2 carat weighs 50 points (.50 carat).
Carat weight is often referred to as the size of a diamond. Diamonds are distributed based on their weight and sorted into weight categories.
Weight categories:
The price will increase based on the weight of the diamond. For example, a one carat, good cut, SI clarity, H colour, round diamond may be 15 to 20% more expensive than an identical stone weighing just 99 points because they are in two different weight categories. A simple 1 point difference can cost much more!
Diamonds that are poorly cut can look smaller or even larger from a face up position. So, don't make the mistake of using carat weight as a measurement of size.

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