Sell Diamonds and get the fairest Loose Diamond Prices
Diamond has no intrinsic value. Unlike gold, which has value as a globally traded commodity, with a near currency-like status, particularly during an economic crisis. A diamond is worth what someone is prepared to pay for it and loose diamond prices vary according to a wide range of factors.
For larger sized diamonds which have a known set of characteristics, there is a fairly transparent global wholesale market. Within a fairly small range, it is easy to calculate price on the basis of the diamond’s characteristics. This includes the well known 4 C’s (carat weight, color, clarity and cut) but also on secondary characteristics such as position of inclusions, fluorescence, colour tint etc., not all of which can be found on the grading report or “certificate” of the diamond. White Pine buys and sells diamonds in the wholesale market, and the price of diamonds in this market will always be less than the retail price. The wholesale market is generally also at a (sometimes significant) discount to many of the published industry diamond price lists, such as the Rapaport Diamond Report which is issued each week. Factors which affect pricing include how quickly a diamond will sell. Those with mid-range balanced color / clarity (in the F-J / VS1 to SI2 range) are more popular with customers and therefore command a premium price in the market compared to unbalanced or very high or very low grade stones.
Small diamonds are bought and sold in parcels, as they cannot be individually priced. In the wholesale market, matched diamond parcels cut from freshly mined diamond are used by jewelry manufacturers to produce lines of matching jewelry, and therefore command premium prices. Once diamonds are pulled out of diamond-set jewelry and recycled in mixed melee parcels, the price changes dramatically. There is a great deal of work to recut and sort recycled diamonds to ultimately create matching parcels for reuse in manufacture. Different buyers will pay premiums only for the diamond melee they want to use in manufacture. For example, those buyers who are looking to manufacture a line of brown pave setting rings will pay maximum price in the market for brown melee, but will pay much less than market price for whites and shapes (princess, marquise etc) as they will have to resell these diamonds.
White Pine carefully sorts between 30,000 and 50,000 carats of recycled melee diamonds a month to sell particular assortments to the buyer who wants it for the maximum price. This sale price filters through to its buying prices allowing White Pine to be one of the most competitive in the market.
Factors which affect diamond value:
– Shape. Round Brilliant cut diamonds generally command the highest price per carat in the market. Fashions change, and different shapes of diamond have become more or less popular over time. Currently, Princess and Cushion cut diamonds are the next most valuable per carat – we generally see these shapes command around 50-70% of the equivalent price of a Round Brilliant. Marquise, Pears, Ovals and Emeralds are at 45-65% and other shapes may be less. Generally the larger the size of diamond, the greater the discount compared to an equivalent Round Brilliant. Baguettes and single cuts (8×8) diamonds have their own valuation, much lower than equivalent rounds. Proprietary shapes such as the Millennium cut or the Hearts and Arrows cut have different values, mostly less than equivalent Round Brilliants.
– Color. Transparent “colorless” diamonds (those in the D to F color range) command the highest prices (very rare fancy colored diamonds command even higher prices, but we won’t deal with those here). Further down the color grade scale, diamonds commonly have either a yellow or a brown tint. Brown tints are priced lower than equivalent yellow tints, by up to 30%. Other color tints, in particular green, have their own (greater) discounts.
– Cut. The cut of a diamond has a huge impact on value, particularly in larger diamonds. As an example, a GIA Excellent cut Round Brilliant diamond may add up to a 30% premium on top of the more common Good cut. Improving the cut of a diamond by re-cutting may improve the value, but not if the resultant weight-loss will mean the diamond ends up dropping below certain threshold weights, for example 1 carat. So a Good cut 1.05 carat round diamond will not be recut to an Excellent cut to get a price premium because the resultant stone would be less than 1 carat, and therefore drop in value significantly.
– Other factors. There are more factors affecting price than we can set out here, but some examples include the position and nature of crystal inclusions (centrally positioned black inclusions will result in a discount of up to 25% compared to white/transparent inclusions positions away from the centre) or the presence of fluorescence (very strong fluorescence, particularly in high grade diamonds, may discount the price by up to 30% compared with a diamonds with no fluorescence). In addition, diamond grading is an art, not a science. A beautiful looking stone will always command a premium price against one that is less handsome.