This is evident when you look at the average retail prices of diamonds by carat weight. On average, the retail price for one carat diamonds can be anywhere between $2,000 to $16,000, and between $8,000 to $72,000 for two carat diamonds .

Some cheaper diamonds may have been treated (e.g., through heat or fracture filling) to improve their appearance. While these treatments can make a diamond more affordable, they typically reduce the diamond's value compared to a natural, untreated stone.

Dubai is deemed as one of the cheapest places to buy diamonds and rightly so. There's a reason that it is regarded as one of the world's top three diamond trading centers—the other two being India and Belgium.

Another big difference between 1 and 2 carat diamonds is the price. There is a dramatic increase in cost from 1-carat diamonds to 2 carat diamonds. While 1-carat stones cost anywhere from $2,000 – $20,000, 2 carat stones range from $8,000 to $50,000. This is because, the larger the carat weight, the rarer the diamond.