CDG Diamond Pricing & Valuation 2

Question 1

When a diamond is quoted at '-10 Rap,' what does this mean?

Accepted Answer

The diamond is priced 10% below the Rapaport list price

Answer

The diamond is priced 10% above the Rapaport list price

Answer

The diamond has a clarity grade 10 levels below the listed category

Answer

The diamond requires a $10 per-carat premium for certification

Question 2

A round brilliant diamond has a total depth percentage of 74%. How does this affect its value?

Accepted Answer

It decreases value because excessive depth causes a 'fish-eye' or dark center effect

Answer

It increases value because greater depth improves brilliance

Answer

It has no effect on value as long as the carat weight is accurate

Answer

It increases value because the diamond will appear larger than its carat weight suggests

Question 3

In the wholesale diamond market, what does 'cash discount' typically refer to?

Accepted Answer

An additional percentage reduction from Rap price offered when payment is made immediately in cash or equivalent

Answer

A discount applied to diamonds that are sold without accompanying grading reports

Answer

A rebate given to retailers who purchase more than 100 carats at once

Answer

A price reduction applied to diamonds with visible inclusions under 10x magnification

Question 4

Between which clarity grades is the price difference per grade typically most dramatic?

Accepted Answer

FL to IF

Answer

IF to VVS1

Answer

SI1 to SI2

Answer

I1 to I2

Question 5

How are melee diamonds (under approximately 0.20 ct) typically priced in the trade?

Accepted Answer

By total parcel weight and quality range, often as a per-carat price for the lot

Answer

Individually, using the same Rapaport sheet as larger diamonds

Answer

Based solely on their country of origin

Answer

Using a separate GIA report issued for each stone

Question 6

How do 'Excellent' polish and symmetry grades typically affect a diamond's price compared to 'Good' grades?

Accepted Answer

They command a premium because they indicate superior craftsmanship and optimize light performance

Answer

They have no price effect because polish and symmetry are cosmetic factors

Answer

They decrease price because achieving these grades requires removing more rough material

Answer

They only affect price for stones under 0.50 carats

Question 7

A fancy shape diamond (e.g., pear or marquise) is typically priced relative to a round brilliant of the same weight and quality grade in which way?

Accepted Answer

At a discount, because round brilliants are more popular and have greater market demand

Answer

At a premium, because fancy shapes require more skilled cutters

Answer

At the same price, as the Rapaport sheet applies equally to all shapes

Answer

At a premium only if the stone weighs more than 2.00 carats