Diamond pricing is set by suppliers and diamond cutters as well as supply and demand conditions. Diamond pricing starts from the mine. As diamonds are harvested in their rough form from mines all over the world, they are sold for purchase to diamond manufacturers at auctions known as sights. The purchasers are diamond manufacturers known as sight holders. There are 79 sight holder manufacturing companies, the majority of whom are from India. At various points during the year, these sightholders attend rough buying auctions and purchase rough diamond. This is the first time a price is set.
The diamond manufacturing process is an expensive one. Diamond manufacturers must deploy skilled labor and technology in order to precisely cut and polish diamonds. Now the assumption here would be that manufacturers set diamond prices. However, that’s not exactly the case.
In order to standardize and regulate diamond pricing, an organization known as Rapaport helps moderate diamond pricing. The Rapaport organization meets with rough suppliers, manufacturers and retailers to determine the supply and demand conditions. Based on those conditions, the organization sets suggested Wholesale diamond prices for all combinations of Carat, Color and Clarity. This report, which is updated and published weekly, is known as the Rapaport Price List.
From here, manufacturers will provide pricing for the diamonds they distribute within the market. These prices are typically either a discount or premium to the wholesale pricing recommendation provided by the Rapaport Price List. Prices will vary because oncut, color, clarity, carat and other attributes such as polish, symmetry, length-width ratio and fluorescence.
Diamond pricing has become extremely competitive since the standardization via GIA. Therefore, it is important to know that the average diamond margin is approximately 7% - 12%.Shop By Price