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 .

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.

Natural diamonds are finite resources, and their availability can impact their value. Indeed, the lab-grown diamond market may have temporarily distressed the demand for natural stones, however the oversupply of man-made diamonds appears to have reached its apex and prices are now declining.

On average, you can expect the cost of a 2 carat diamond to widely vary depending on its shape, cut quality, clarity, color, and whether it's a naturally mined or lab diamond. The varying cost can range from $5,000 to $50,000 or more.