Diamond Prices
from
Diamond Experts

Diamond prices follow reasonably predictable trends. Although, it is sometimes possible for an individual to chart market figures, the Rapaport list is considered the primary source of industry prices. In reality cutters' price their diamonds in relation to the cost of rough crystals, their overhead, and other expenses. They then compile a price list of their own at which they sell diamonds of various sizes and qualities.

These prices may be different from similar lists produced by diamond wholesalers. Sometimes jewelers forget that there is no such thing as an absolute fixed price for a diamond. Wholesalers compete with each other just like any other merchants when it comes to price and quality.

That's why at Diamond Experts, we truly charge the lowest prices for our wholesale diamonds. Since we are located in the Diamond Bourse in Tel Aviv, Israel, we buy direct from the source, the diamond cutters and then pass on the low prices to you.

Method of Estimating Diamond Prices

If you want to estimate the market value of a diamond, it is very important to be as accurate as possible. Anyone who doesn't deal with diamonds regularly, and doesn't have a grasp of the price structure is vulnerable to making mistakes. Use these three basic rules to reach the correct price for the diamond:

1. Weigh the diamond or make an accurate estimation of the weight by using a gauge.
2. Evaluate the quality of the diamond as explained in this web site (By color, clarity, and cut).
3. Refer to the Rapaport list of diamond prices.

The Rapaport list is the usual stumbling block. Some jewelers willingly show the list to their customers. A current Rapaport list can obviously be made the basis for negotiating the price of a diamond. Of course, an experienced wholesaler will know the most useful information.

The Rapaport list compiles prices for reference according to three variables - weight, color, and clarity. Cut is omitted and all diamonds are assumed to be of a good cut. A mental allowance should be made for lower qualities of cut. Having correctly identified the qualities of the diamond, one can reach the correct price.

Diamond Prices - per Carat

The Rapaport list presents prices as per carat. This is the accepted way of indicating diamond prices in the trade. For example, consider a parcel of diamonds is marked ' 0.55 ct $2000 '. This means a price of 55/100 X $2000 = $1100 for the parcel. Dealers seldom mark parcels with the actual total price, such as: ' 0.55ct. $1100 for the diamond.'

Diamond price lists are usually kept up to date since the market keeps moving upwards. The major changes come when there is an increase in the price of rough diamonds or the wholesale selling pattern is changed. If De Beers announces an increase of 5 per cent in the price of wholesale rough diamonds that does not mean all the prices in the chart will increase by 5 per cent. The increase is an average one given to cutters. Most likely, there will be a price increase for higher quality stones rather than those of lower quality.

One should also consider "humps" in the chart caused by demands for diamonds of particular sizes and qualities. For example, there may be a very strong demand for stones of around .50 carat in weight, which will cause a price "hump" at this index.

There are humps in diamond prices for carat levels also, known as carat premiums, which are a result of demand brought on by the 'desire' of owning a diamond of 1,2,3,4 carats or larger. Prices jump at each carat level and this also happens at the quarter carat and half-carat weights.

Diamond Prices more than Double When Cut

When a diamond is manufactured, at least half the weight is lost. Therefore, polished diamonds immediately double in price, at least, when compared with the rough crystals from which they were made. As a general rule, it could be said that 2-carat rough diamond crystal were cut, it would produce a 1-carat diamond.

Modern cuts increase the percentage of weight retained when rough crystals are cut. Also, poorly shaped stones are sometimes cut to "save weight."