CDG Diamond Pricing & Valuation 3

Question 1

A 1.05 ct, F/VS1 round brilliant sells at $8,000 per carat. What is the total retail price of the diamond?

Accepted Answer

$8,400

Answer

$7,619

Answer

$8,000

Answer

$76,190

Question 2

What is 'replacement value' in a diamond appraisal context?

Accepted Answer

The retail cost to replace the diamond with one of similar kind, quality, and size

Answer

The amount a dealer would pay to purchase the diamond at wholesale

Answer

The insured value minus depreciation over five years

Answer

The melted metal value of the jewelry setting plus stone weight

Question 3

On the Rapaport price sheet, how are diamonds organized?

Accepted Answer

By carat weight range, then color grade, then clarity grade

Answer

By origin country and fluorescence level

Answer

By laboratory report issuer and cut style

Answer

By date of purchase and current market trend

Question 4

A fancy intense yellow diamond is being valued. Which color saturation factor commands the highest price within the fancy yellow category?

Accepted Answer

Fancy Vivid Yellow

Answer

Fancy Light Yellow

Answer

Fancy Yellow

Answer

Fancy Intense Yellow

Question 5

What is a 'parcel' in the diamond trade, and how does parcel pricing typically work?

Accepted Answer

A collection of mixed-quality stones sold together at one blended per-carat price reflecting average quality

Answer

A single certified diamond shipped in a protective container; priced individually by report

Answer

A batch of diamonds from the same mine, each priced according to its individual color grade

Answer

A group of synthetic diamonds packaged to look like natural stones

Question 6

Which of the following best describes 'liquid value' or 'liquidation value' for a diamond?

Accepted Answer

The price a dealer would realistically pay to purchase the stone quickly for resale

Answer

The retail appraised value used for insurance purposes

Answer

The value of the diamond after subtracting the cost of re-cutting

Answer

The market value of the diamond if it were sold on a public auction platform

Question 7

A diamond grader is advising a client on the price impact of upgrading from an I1 to an SI2 clarity grade of the same carat and color. What is the most accurate statement?

Accepted Answer

The SI2 commands a meaningfully higher price because inclusions become less visible and the stone gains eye-clean status in most cases

Answer

The upgrade has minimal price impact because both grades are considered 'eye-clean'

Answer

The price difference is negligible because color grade is the only significant pricing variable

Answer

The I1 is priced higher because its inclusions are larger and thus the stone appears more unique