Among all the items of luxury and well-being, diamonds have always stood in the foreground. These stones are a symbol of success and foresight. Today diamonds are a big business, and each year, millions of carats are purchased around the world for both industrial as well as personal use.
According to estimates from 2020, over 200 million carats of diamonds were sold annually worldwide representing an extremely high value of almost $14 billion. The main markets contributing to these figures were led by the United States who purchased nearly 43 million carats at a personal cost of over $6 billion a year. India, Belgium and the United Arab Emirates followed close behind with all spending approximately the same amount yearly on diamond purchases.
The diamond market is also a market with a high entry price and its own rules. If a person does not know how to evaluate diamonds correctly, he is more likely to make a wrong investment. That is why, despite all the advances in technology, jewelers remain one of the most sought-after professionals.
Fortunately, people today have much more information than before about these valuable stones to limit their risk of making a wrong purchase. In addition to the traditionally manual analysis of information about the parameters of diamonds, many professionals today also use predictive models.
Predicting prices through machine learning is an useful and powerful tool. Through the use of algorithms, data can be analysed to build models that predict pricing on various products and services.
Predicting the price of diamonds involves studying the individual characteristics of each diamond – such as cut, color, clarity and carat weight and more. The model is then trained based on this data. Its effectiveness is measured and conclusions are drawn about its applicability or inapplicability for price forecasting.
At the link below you can see how I analyzed the diamond market and built a machine learning model to predict diamond prices with high accuracy.
