Imagine you're deciding between two restaurants.
The first is an upscale steakhouse. The menu is pretty straightforward: filet mignon, asparagus and roasted potatoes.
$95.
Across the street is a trendy restaurant with a signature burger: grass-fed beef, handcrafted bun, specialty cheese, caramelized onions, thick-cut bacon, house-made sauce and seasonal greens. It comes with fries or onion rings and a drink.
$25.
At first glance, the second restaurant may look like the better deal.
You're getting more ingredients, more preparation and probably a more interesting-looking plate—for a fraction of the price.
But there's one important difference.
One restaurant dressed up hamburger. The other started with filet mignon.
Diamond jewelry can work the same way.
And this is especially important with natural diamonds, where the price per carat can rise dramatically as individual stones become larger and rarer. Lab-grown diamonds follow the same basic principle, but the price difference between larger and smaller stones is generally much less dramatic, so the total-weight distinction usually has far less financial significance.
Imagine two natural diamond rings advertised as 2 carats.
The first is almost boring: one beautiful 2-carat diamond on a plain gold band.
The second is spectacular. It has a smaller center diamond surrounded by a halo, tiny diamonds flowing down an intricate band, beautiful craftsmanship and maybe even a designer's signature inside.
And somehow, the elaborate ring is substantially cheaper.
Look closely and you'll probably find the explanation in two little letters:
TW.
Total weight.
A 2-carat diamond is one diamond weighing 2 carats. A 2 CTW ring contains multiple diamonds that collectively weigh 2 carats.
That distinction can represent an enormous difference in value.
A 2 CTW ring might have a half-carat center diamond surrounded by 1.5 carats of tiny diamonds. It could have dozens—or even hundreds—of small stones.
The total weight is the same.
The value isn't.
With natural diamonds, larger high-quality stones become increasingly rare, so the price per carat can rise dramatically as the individual diamond gets larger. Go in the opposite direction and very small diamonds can be worth dramatically less per carat.
That's why a collection of tiny diamonds totaling 2 carats can be worth a fraction of one exceptional 2-carat diamond.
It's also why the elaborate ring can contain more diamonds, more gold, more design and considerably more labor—and still cost less than the simple solitaire.
The expensive ingredient in the solitaire is the diamond itself.
It's filet mignon.
The same principle applies to virtually every form of diamond jewelry. Take diamond studs, for example.
One pair might contain two substantial diamonds in simple gold settings. Another might have smaller center stones surrounded by halos, diamonds around the baskets and even diamonds on the prongs.
The second pair may look bigger, more elaborate and more impressive. It may even have the same total carat weight.
But it's a completely different value proposition.
And that's not necessarily a bad thing.
Sometimes I'd rather have the $25 craft burger. It may be more interesting, more creative and frankly, more enjoyable.
The same is true of jewelry. An elaborate piece covered in smaller diamonds can be beautiful and demonstrate incredible craftsmanship. You may prefer it.
Just know what you're buying.
When you see 2 CTW, don't read it as “a 2-carat diamond.”
It means 2 carats of diamonds.
There's a big difference.
And just like the burger and the filet, either one can be a great choice—as long as you know what's actually on the plate.