In pricing terms, what is the price of a gem divided by its carat weight called?

In pricing terms, what is the price of a gem divided by its carat weight called?

• A. Per-carat price
• B. Pick price
• C. Ore grade
• D. Overburden

Answer: (A)

The price per carat is what you get when you divide the price of a gem by its carat weight. This unit pricing lets you compare value across stones of different sizes, since it shows how much you’re paying for each equal increment of weight. In practice, buyers and sellers quote diamonds by price per carat to gauge value independent of the total size. The other terms don’t fit this context: a pick price isn’t a standard diamond pricing term, and ore grade and overburden are mining concepts describing ore concentration and the material above the ore, not price per unit weight.

The price per carat is what you get when you divide the price of a gem by its carat weight. This unit pricing lets you compare value across stones of different sizes, since it shows how much you’re paying for each equal increment of weight. In practice, buyers and sellers quote diamonds by price per carat to gauge value independent of the total size.

The other terms don’t fit this context: a pick price isn’t a standard diamond pricing term, and ore grade and overburden are mining concepts describing ore concentration and the material above the ore, not price per unit weight.