Why is a large diamond typically more valuable than the same weight in small diamonds?

A large diamond is typically more valuable than the same weight in small diamonds primarily due to its rarity. Larger diamonds are significantly less common than smaller stones, and their formation in nature requires a specific set of conditions that are not often met. This means that as the size of a diamond increases, it becomes increasingly rare and thus commands a higher price per carat.

While design potential, color quality, and cut grade are important factors in determining a diamond's value, they do not fundamentally explain why a large diamond is valued higher than several smaller diamonds of the same total weight. The inherent scarcity of larger stones makes them more desirable to many buyers, which directly influences their market value. The perception of rarity elevates the desirability and prestige of larger diamonds, leading to their higher valuation in the jewelry market.