CGC CGC Gemstone Valuation & Market Pricing 2 — Questions and Answers
Question 1: Which factor causes a disproportionate increase in price as emerald carat weight increases?
- Supply is unlimited for large emeralds
- Large, high-quality emeralds are exponentially rarer (Correct answer)
- Cutting costs increase with size
- Export tariffs scale with weight
Correct answer: Large, high-quality emeralds are exponentially rarer
Large, high-quality emeralds are exponentially rarer in nature, so prices per carat increase disproportionately as size increases.
Question 2: What is the primary reference used by U.S. gemstone consultants for colored stone market pricing?
- GIA Price Guide
- Gemworld International's Guide (Correct answer)
- CIBJO Blue Book
- AGS Price List
Correct answer: Gemworld International's Guide
Gemworld International's 'The Guide' is the most widely referenced pricing publication for colored gemstones in the U.S. trade.
Question 3: How does saturation affect the value of a colored gemstone?
- Lower saturation always commands higher prices
- Higher saturation generally increases value up to the optimal tone (Correct answer)
- Saturation has no effect on value
- Only hue and tone affect value
Correct answer: Higher saturation generally increases value up to the optimal tone
Higher color saturation generally increases value, but extremely dark tones can reduce value by masking brilliance, so optimal saturation is key.
Question 4: Which type of sapphire color commands the highest price per carat in the U.S. market?
- Padparadscha
- Cornflower blue
- Royal blue (Correct answer)
- Color-change
Correct answer: Royal blue
Royal blue sapphires, particularly those from Kashmir and Burma, command the highest prices per carat due to their exceptional color and rarity.
Question 5: What is 'market value' in the context of gemstone appraisal?
- The highest price a seller will accept
- The price agreed upon between a willing buyer and seller with full market knowledge (Correct answer)
- The insured value of the stone
- The wholesale dealer price
Correct answer: The price agreed upon between a willing buyer and seller with full market knowledge
Market value (fair market value) is the price at which property would change hands between a willing buyer and seller, both having reasonable knowledge of the facts.
Question 6: Which certification body's laboratory reports are most widely accepted in U.S. gemstone transactions?
- EGL USA
- IGI
- GIA (Correct answer)
- AGL
Correct answer: GIA
GIA (Gemological Institute of America) laboratory reports are the most widely trusted and accepted in U.S. gemstone and diamond transactions.
CGC CGC Gemstone Valuation & Market Pricing 2
Which factor causes a disproportionate increase in price as emerald carat weight increases?