Free Diamond Tutorial
Sample Lesson from the Tutorial
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Complete Contents of the Tutorial
Sample from Lesson 5
Below is a sample topic from lesson 5 of our tutorial, which teaches how to use the Rapaport Diamond Grading Report to find the starting point for pricing a diamond. Keep in mind that this is ONLY a starting point, and you need to adjust this price for 9 quality factors beyond the 4 Cs before you know what a diamond is worth!
~~~~~~~~~~ SAMPLE BEGINS HERE ~~~~~~~~~~~
HOW TO USE THE RAPAPORT PRICE LIST
Diamonds vary in price according to the shape, since different shapes have different levels of demand. In addition, some shapes have a better yield from the rough. This just means that less is wasted during cutting because the original shape of the rough is closer to the final shape intended for that material. Less waste means a better price for the finished diamond.
As a general guideline, you should be able to find diamonds -- with all quality factors in acceptable ranges -- at the Rapaport price, and under certain circumstances, even below the Rapaport price! Exceptional qualities will increase the price to some degree, especially for ideal cut rounds. More importantly, even a single unacceptable quality factor in a diamond may decrease the value very significantly, so you need to be very careful when you look at the details. This is where a good jeweler becomes essential. They can protect you from the little things that are hard to see but make a big difference in beauty and value.
Instructions
Follow these steps to learn how diamond dealers use the Rapaport
price list to know a good deal on a diamond.
Warning: It is not possible to
use the Rapaport price list to assess diamond prices accurately -- until you also consider and adjust for all 13 of the major details on a laboratory certificate.
This is where you ask a good dealer for a little help. There is no way to get ahold of a copy of the Rapaport price list except by asking a dealer.
How to use the practice price chart below:
1 - Find the color you want, listed on the left.
2 - Follow from left to right until you are under the clarity you want.
3 - Multiply the number in the box times $100 to find the price per carat.
4 - Multiply the price per carat by the carat weight to get the total price for that diamond.
A diamond dealer then adds or subtracts for additional factors like Ideal Cuts, poor crown angles, excessive table percentages, excessive fluorescence in fine colors, etc. This adds quite a bit of complexity to the pricing process.
Practice Price Chart
NOTE: These prices are not from the actual Rapaport price list. That list is copyrighted and cannot be shown here. However, these prices represent a good idea of the changes for each color and clarity grade, just like you would see in the actual report.
Round Brilliant Shape 1.00-1.49 carats
(all prices in hundreds of dollars per carat)
|
| |
IF |
VVS1 |
VVS2 |
VS1 |
VS2 |
SI1 |
SI2 |
SI3 |
I1 |
| D |
142 |
94 |
84 |
71 |
64 |
57 |
51 |
41 |
35 |
| E |
94 |
84 |
71 |
65 |
61 |
55 |
49 |
40 |
33 |
| F |
83 |
71 |
65 |
63 |
59 |
54 |
47 |
38 |
31 |
| G |
70 |
65 |
61 |
59 |
55 |
50 |
44 |
37 |
31 |
| H |
61 |
59 |
56 |
54 |
51 |
47 |
42 |
35 |
29 |
| I |
51 |
49 |
47 |
45 |
43 |
41 |
37 |
33 |
27 |
| J |
43 |
42 |
41 |
40 |
39 |
37 |
34 |
30 |
25 |
| K |
39 |
38 |
37 |
37 |
36 |
34 |
31 |
27 |
23 |
| L |
35 |
34 |
33 |
32 |
31 |
31 |
27 |
25 |
20 |
| M |
29 |
28 |
27 |
26 |
26 |
25 |
22 |
20 |
17 |
Test Yourself
We recommend using the fictitious sample chart above to practice and test your understanding of diamond pricing and the Rapaport Diamond Report.
TEST QUESTION:
If you buy a round brilliant shape diamond weighing 1.01 carats, of F color and VS2 clarity, what is the approximate starting point for price negotiations among dealers? (before adjustments for other quality factors)
ANSWER:
As per the sample chart above, dealers would start negotiations for a 1.01 carat, F/VS2 at $5,900 per carat, which means about $5,959 for the total stone price. This is called the "Rap Price" for this diamond. Actual selling price would vary greatly, depending mostly on the total quality of the diamond after you adjust for 13 major factors such as fluorescence, Ideal Cut round, crown angles, table percentages, etc. Prices on the same exact diamond will also vary on the volume purchased, credit rating of the buyer, relationship between the buyer and seller, etc. These factors can make a huge impact on the price you or a dealer pays for the stone.
~~~~~~~~~~ SAMPLE ENDS HERE ~~~~~~~~~~~
Complete Contents of the Tutorial
