How to determine the purchase price for a rough diamond?
We will try to give you some information relating to the various criteria which can intervene in the calculation of the price of the rough diamond.
The principal criteria which can influence the purchase price of rough diamonds are:
Where the transaction takes place i.e. Africa, Europe, CIS, USA or other foreign locations.
Where is the location of the physical transference of the rough diamonds?
What is the method of payment: wire transfer, cash, C.O.D., etc...?
Costs of buying rough diamonds: travel, hotel, negotiations, etc...
The crystalline structure of rough diamonds. The most important part regarding buying or selling of rough diamonds, is to know the basic structures (crystals): stones, shapes, cleavages, macles, flats.
The good classification of the crystalline structure of rough diamonds is determining the calculation of the purchase price, indeed all crystalline shapes of diamonds do not have the same yield. The stone structure will yield approximately 50 percent of the finished diamond, the shapes structure will yield 45 percent, the cleavages structure will yield 35 percent, the macles structure will yield 28 percent and the flats structure will yield 25 percent of the finished diamond.
Mode of calculation for the purchase of a rough diamond (all the prices below are false):
If someone would offer us a 5 carats rough diamond, for example, stone structure, VS2 and G color.
The stone structure we will yield approximately 50 percent of the finished diamond:
5 carats (rough diamond) x 0.50 (50%) = 2.50 carats (polished diamond).
If we decide to cut the octahedron in half to yield two equal finished stones:
2.50 carats ÷ 2 = 1.25 carat (for each polished diamond).
The Rapaport value for a 1.25 carat, VS2, and G color is $500.00 per carat:
2,500 x 1.25 = $3,125.00 (for each stone).
This type of stone will yield 2 X 1.25 carat stones:
$6,250.00 (3,125 x 2).
We will discount the Rapaport value by 40 percent to obtain the wholesale market price:
1.25 x 2,500 x 0.60 (-40%) = $1,875.00 (for one diamond), total $3,750.00 (for two polished diamonds).
To obtain our purchase price for this rough diamond of 5 carats, it is necessary to apply a percentage which will correspond to our profit margin (on average it is best at 50%):
3,750 x 0.50 = $1,875.00 (this is our purchase price for this rough diamond).
The purchase price per carat for this rough diamond is:
1,875 ÷ 5 carats = $375.00 per carat.
We offer lists which give the price of rough diamonds per carat according to various criteria, such as: the crystalline shape, the rough weight, the color and the clarity. It is possible to to subscribe at these price lists. Over 20,000 prices are published.
The prices showing on this list below are not real prices.
Each diamond chart for every category will give you the following:
The rough diamond weight.
An image of the crystalline structure.
A description of the crystalline structure.
The number of finished stones.
The calculated weight of the polished and finished diamond.
The maximum values per carat for that rough diamond.
The color scale.
The clarity scale.
If you want to subscribe to these rough diamond price lists, please click on this link Rough Diamond Price Lists.
We offer you a simulator of prices (images below) for the purchase of rough diamonds which is accessible on subscription.
Very easy to use, specify the crystalline shape of rough diamond, its weight, its color and its clarity and the simulator calculates the purchase price of this rough diamond.
The results page showing the price of the rough diamond appears below.
The simulator will:
Give you the total weight of the finished stones.
Give you the total value of the rough diamond purchase.
Give you the ability to alter the profit margins for the purchase and sale of the rough diamond.
Give you an overview of all structures (stones, shapes, cleavages, flats, and macles), all of them can be analyzed.
Give you a rough diamond purchase price in the local currency of your choice.
Give you a purchase price for 1 rough diamond or a parcel.
If you want to subscribe to this rough diamond prices simulator, please click on this link Rough Diamond Price Simulator.
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