DCA Appraisal Methods & Valuation 3

Question 1

The Rapaport Price List is a key tool in diamond valuation. What does it primarily report?

Accepted Answer

Wholesale asking prices for round brilliant diamonds by size and quality

Answer

The Rapaport Price List reports wholesale asking prices for polished round brilliant diamonds organized by carat weight, color, and clarity.

Question 2

When valuing a fancy-colored diamond, why is the Rapaport Price List less directly applicable?

Accepted Answer

Fancy-colored diamonds trade on unique attributes that standard price grids cannot capture

Answer

Fancy-colored diamond prices depend on hue, saturation, distribution, and rarity factors not captured by a standard colorless diamond price grid.

Question 3

A 'discount to Rapaport' percentage is commonly used in diamond trading. What does a 30% discount mean?

Accepted Answer

The diamond sells at 70% of the Rapaport listed asking price

Answer

A 30% discount to Rapaport means the transaction price is 70% of the published Rapaport list price.

Question 4

Which characteristic of a diamond would typically result in a LARGER discount to Rapaport (lower relative price)?

Accepted Answer

Poor proportions with visible inclusion clusters

Answer

Poor proportions and visible inclusion clusters reduce marketability and command larger discounts from standard Rapaport prices.

Question 5

For appraisal purposes, 'liquidation value' is best described as:

Accepted Answer

The price achievable in a forced or time-constrained sale

Answer

Liquidation value reflects the price achievable under forced or time-constrained conditions, typically well below fair market value.

(DCA) Certified Diamond Council of America Diamond Specialist Practice Test