|
Pricing most products is quite easy. Determine how much it
costs to make the item, how much it costs to market that item, and
then mark it up by 15 – 30% or more. Simple, right? Well, pricing
diamonds isn’t quite that simple. There are many factors that are
considered when diamonds are priced.
Diamond prices are determined first
by adding the cost of the rough diamond, the cost of cutting the
diamond, and all other costs necessary to turn the rough diamond
into a marketable diamond. Depending on the importance of the
diamond, an independent company may be called in to certify the
grade of the diamond based on color, cut, clarity, and
weight.
At this point, the diamond becomes
more expensive each time it changes hands, until it finally reaches
a retailer, where the price is raised a bit more. Before reaching
the retailer, however, the diamond must travel from the mine, to the
cutter and polisher, to the independent grading company, and then to
the Primary market. Once it has reached the primary market, it will
be purchased by diamond dealers and wholesalers, and from there it
will be sold to retailers.
As you can see, the earlier you can
purchase a diamond in the process, the lower the cost of the diamond
will be – but not the value. The value is based on what the diamond
will sell for in the market place – through a retailer.
If you own a diamond, and you have
no idea how much it is worth, you can have it appraised, but the
appraisal may not be accurate. You will be better off obtaining a
certificate through GIA – Gemological Institute of America. With the
information on this certificate, you can use a cutter’s guide to
accurately determine what your diamond is worth.
There are also many diamond price
calculators available. These can be found
on the Internet, and many diamond
dealers use these as well. You must realize, however, that before
you can accurately price a diamond, without a Diamond Grade Report,
you need to know quite a bit about diamonds, such as different cuts,
clarity, color, and weight – and how each of those aspects adds to
the value of a diamond, or decreases the value of the diamond as the
case may be.
Again, you will be better off if you get a Diamond Grading Report
on the diamond, and use that information to look up the price in one
of the guides that the diamond cutting industry uses. This will give
you the most accurate value of the diamond in your possession, or of
the diamond you are considering purchasing.
|
