COST

How Diamonds are Priced

Automobiles have a wholesale price book called the “Kelley Blue Book”. Diamonds have a similar book referred to as the “Rapaport Diamond Report”. It shows weekly wholesale price fluctuations broken down in terms of shapes, sizes, colors, and clarity. Within that it should be noted that the proportioning or cutting of a stone can affect the value of a diamond tremendously. You will also learn that if the weight is not critical to you, you can save money by dropping the weight so it falls into another pricing category.

Let’s say for example you are in the market for a 1 carat diamond and you don’t want anything less than an “SI” clarity and lower than a “J” color.

The Rapaport Diamond Report will list the following (see example below):

• The Carat Weight Bracket (1.00 to 1.49 Ct.)
• Column for various clarities
• Rows for various colors

Sample of Rapaport Diamond Report for April 1997

Please note that this chart is read in terms of hundreds of dollars and a per carat price. In other words, “47” means $4,700.

In this example, if your budget is around $5,000, then you have many different options to choose from. On the high end of the budget ($5900), you can opt for an “E” color with SI1 clarity down to a “F” color with SI2 clarity at $5100. Or you can choose from an “H” or “I” color with VS2 clarity. It’s up to you to choose after inspecting the different diamond options that the jeweler has available. Keep in mind the proportioning will affect the pricing.