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What You Need to Know About Carat and Diamond Prices Contents: What is Carat? How Does Carat Affect Diamond Prices? How Do Carat and Clarity Affect the Value of a Diamond? Diamond Cut and Carat Color, Carat and Prices Frequently Asked Questions About Carat and Diamond Prices What is Carat? Carat is a unit used to measure the weight of precious stones such as diamonds. 1 carat is equal to 0.2 grams or 200 milligrams. Carat refers to the size of diamonds, usually used in jewelry, and is often the first factor consumers consider when choosing a diamond. However, carat...