The price of a 1-carat diamond is influenced by several factors, including its rarity, the cost of mining, and the demand for diamonds of this size. Diamonds are priced per carat, and the price per carat increases significantly as the carat weight goes up, due to the rarity of larger diamonds. The cost reflects the quality of the diamond as well, which includes the cut, color, clarity, and carat weight—collectively known as the "4 Cs." A 1-carat diamond strikes a balance between size and affordability, making it expensive but still within reach for many buyers compared to larger stones.