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The term Carat refers to the weight of the diamond, however most people refer to it as the size. One metric carat equals 0.2 grams. Precision of carat weight is essential because the value of the stone is highly dependent on the weight. Because of that, carats are expressed in one hundredth of a carat and in decimal points. Much like a dollar is divided into 100 pennies, a diamond is divided into 100 points. For instance a diamond that weighs 1.04 carats is 1 carat and 0.04 carats. (Pronounced one point oh four carats). If a diamond weighs less that 1 carat, it would read 0.75 carats. (Often pronounced ‘point 75 carats’ or ‘75 pointer’). As a general note, carat weight or size is usually the starting point when determining price. Generally speaking, when all other factors are equal, the carat weight is what will determine the price as the weight increases or decreases.The term “Carat weight” originated when early gem traders used the carob seed as the uniform counterweights on the balance scales. Modern times adopted the term carat to equal 0.2 grams and is now the standard of diamond and gemstone measurement throughout the world.