Diamond Pricing & Valuation Flashcards

What is the primary purpose of the Rapaport Diamond Report (Rap Sheet)?

Answer: To provide a standardized wholesale price benchmark for round brilliant diamonds by size and grade

The Rapaport Diamond Report is a widely used weekly price list that serves as a benchmark for wholesale diamond prices organized by carat weight, color, and clarity grade.

Among the 4Cs, which factor typically has the greatest influence on a diamond's per-carat price at higher quality levels?

Answer: Color grade

At higher quality tiers, color grade tends to have the most dramatic impact on per-carat price because D–F colorless diamonds command significant premiums over near-colorless grades.

How does strong blue fluorescence typically affect the price of a D–F color, high-clarity diamond?

Answer: It decreases the price because it can cause a hazy or oily appearance in some stones

Strong blue fluorescence in D–F color diamonds is generally considered a negative factor because it can produce a hazy or milky appearance, reducing the stone's value.

In diamond trading, what does the term 'off-make' refer to?

Answer: A diamond with proportions that deviate significantly from ideal cutting standards

An 'off-make' diamond has proportions outside accepted cutting standards—such as excessive depth or poor symmetry—resulting in a discount from Rapaport prices.

What pricing phenomenon occurs at 'magic sizes' such as 0.50 ct, 1.00 ct, and 2.00 ct?

Answer: Diamonds just below these weights sell at a discount, while diamonds at or above them command a premium

Diamonds at or just above 'magic sizes' command higher per-carat prices due to strong consumer demand for milestone weights, while stones just below are often discounted.

Why does the per-carat price of diamonds generally increase as carat weight increases within the same quality tier?

Answer: Large rough crystals suitable for bigger polished stones are rarer, increasing their per-carat scarcity premium

Large gem-quality rough crystals are exponentially rarer than small ones, so the per-carat price rises with size to reflect the scarcity premium of finding and cutting larger stones.

Which grading laboratory's reports typically command the highest price premium in the wholesale diamond market?

Answer: GIA (Gemological Institute of America)

GIA reports are recognized as the industry gold standard for consistency and accuracy, commanding the highest market premiums and buyer confidence worldwide.