INTRODUCTION TO THE PRICE LIST

The Rapaport Price List is the primary source of diamond price information for the diamond trade and is commonly used by dealers as an approximate guideline for evaluating diamond prices. Readers should understand the kind of prices quoted, standards used to describe the diamonds referred to in the List, the limitations of the List and how it can be used to aid buyers and sellers.

The Round and Pear Shape Price Lists are published online every midnight Thursday with the exception of holidays.

ASKING PRICES

The Price Lists quote the Rapaport opinion of high cash asking prices for Rapaport Specification 2 and better diamonds. These prices may be substantially higher than actual transaction prices. It is most common for the diamond trade to transact diamonds at a discount to the List. However, in some instances, select qualities that are in short supply or subject to speculative demand may trade at significant premiums to the List. Premiums, when applicable, are most common for large, very fine cut diamonds.

Detailed information about discounts are provided online in real time via our RapNet diamond trading network. They are also included in our Trade Sheets published with our monthly magazine.

The level of discount or premium varies greatly and is influenced by many factors. Stone quality and cut, credit/memo terms, the location and type of market and the liquidity level of particular size/quality combinations all impact the discount level. Liquidity and the associated risk of ownership are also a factor. The easier it is to sell a diamond, the lower its discounts to the List. Hard-to-sell diamonds often trade at large discounts. Very in-demand, scarce diamonds may trade at premiums to the List.

The Rapaport Price List does not provide transaction prices but rather price indications that may serve as a starting point for negotiations and a basis for estimating value for a broad range of diamond sizes and qualities. Transaction prices are the result of negotiations between buyer and seller and reflect numerous factors, including the physical characteristics of specific diamonds, terms of condition of sale, service to customer and a host of other factors. Transaction prices may be substantially higher or lower than list prices. Buyers and sellers are advised to consult with experts before trading diamonds.

DIAMOND SPECIFICATION

The Price List relates to Rapaport Specification 2 or better diamonds that are graded based on GIA standards. (Except for SI-3, an additional intermediate non-GIA grade for eye-clean stones.) The Price List relates to diamonds with GIA grading reports for those qualities (D-J, IF-VS2) that are commonly sold with grading reports. Lower-quality stones that do not have grading reports should be graded to GIA standards.

Important Notice

The Rapaport Price List should only be used as a general guideline for evaluating diamond prices. It cannot replace the human factor in determining the value of a specific diamond. Each stone’s value depends on its unique qualities. The Price List reflects our opinion of high cash asking prices for fine cut (Rap-Spec-2) stones. These prices may be substantially higher than actual transaction prices. Caution: Poorly cut, misgraded, and hard-to-sell stones may trade at very high discounts.

Readers should review the sell listings for information about asking prices and discounts for specific stones and size/quality categories. Sell listings are published in the monthly report and are available to members of the trade at www.diamonds.net.

SHAPE

Price Lists are published for Round and Pear shaped diamonds. Prices are published every midnight Thursday.

The Pear Shape Price List is often used for other fancy shapes with varying discounts depending on the shape, size, and quality.

It is important to note that fancy prices are highly sensitive to the shape and cut of the stone. Poorly cut stones often trade at huge discounts. The Price List is based on well-shaped, fine-cut stones.

SIZE

The Price Lists are organized by size, color and clarity. Each size has its own matrix. Round prices are quoted for sizes from .01 carat to 10-carat sizes and fancy shape prices are quoted for sizes from 1/5 carat to 5 carats. Approximate price conversion scales are published for 6-carat to 9-carat sizes in the monthly Report. Conversion scales are based on percentage increases from 5-carat prices. Large stones often trade at premiums to the 5-carat list.

COLOR AND CLARITY

Each matrix has a vertical column of colors and a horizontal row of clarities. The colors are based on Gemological Institute of America (GIA) standard terminology from D through M. Clarity grades are also based on GIA standards. We have, however, added an SI3 clarity grade that is not recognized by the GIA. SI3 is a split SI2/I1 grade. It is included because sellers frequently sell this grade of stone and trade it in the market.

For sizes under 1/4 carat, colors and clarities are grouped together, as these stones are most often sold in parcels.

PRICES

All price indications are quoted in hundreds of dollars per carat. For sizes under 1/3 carat, prices are quoted to the nearest $10. For example, a price of 6.4 should be read as $640 per carat. Sizes of 1/3 carat and larger are quoted to the nearest $100 per carat. For example, a price of 95 should be read as $9,500 per carat. Prices that have increased since the last price sheet are in bold. Prices that have decreased are in italic bold.

INDEXES

For 1/3 carat and larger rounds, there are two Rapaport Diamond Indexes under each matrix. The first index RDI, W (white) is the average price per carat of all better-quality (D to H, IF to VS2) stones of that size. The second index RDI, T (total) is the average price of all the stones (D to M, IF to I3) in the matrix. The indexes are followed by an = sign and a number that reflects the percentage change in the index since the previous Price List. All indexes are in hundreds of dollars per carat.

CUT

Cut has an important impact on price. A poorly cut, flat or deep diamond is worth substantially less than a well-cut diamond. The price information in the Rapaport Diamond Report relates to fine-cut stones as per Rapaport Specifications 2 (see table, opposite page). While medium-cut diamonds often trade at a slight discount to fine-cut stones, poorly cut stones can trade at very high discounts. Prices for fancy shape stones are highly dependent on the overall shape and the quality of cut, with very large discounts for poorly shaped or cut fancies.

CUT SPECIFICATIONS

The Rapaport Price List is based on Rap-Specifications-2 stones without strong or medium fluorescence.

Please Note: Rapaport specifications cannot replace the human factor in evaluating cut grade. Off-center culets, nonsymmetrical facet junctions, very wavy girdles, large naturals, crown angle comments, pavilion percentages, and the relationship between depth, table, crown, and pavilion are all factors that affect cut. Fluorescence and graining may also impact market price. The effect of cut on price is highly specific to particular stones and buyers. It is often subjective and varies according to market conditions. The specifications sheet is based on the opinion of Rapaport regarding current market conditions and is subject to change without prior notice.

FLUORESCENCE

In some instances, high color diamonds are adversely affected by strong and medium fluorescence, which give the stones a milky white appearance. In recent years, buyers have discriminated against fluorescent stones even when there is no milky white appearance. This may be because fluorescence makes the stone’s face-up color look better and some labs have a tendency to upgrade the color for these stones. For lower J to M color stones, fluorescence may have a beneficial impact on color and may help the stone bring better prices. In some markets, such as Singapore, the right type of fluorescent stones can bring premium prices.

The Price List is based on stones without strong or medium fluorescence. A table with estimates of discounts and premiums for fluorescent stones is presented in our monthly Report.

GRADING REPORT AND CERTS

Our Price List reflects the value of stones that are accurately graded. Except for SI3, the price list is based on Gemological Institute of America (GIA) grading standards. Stones customarily lab graded by the trade (0.50+, D to K, IF to VS2) are priced based on their having GIA reports. Prices for smaller and lower-quality diamonds are based on honest grading. Stones with non-GIA certificates may trade at discounts to stones with GIA reports.

Caution: Diamond grading laboratories use subjective methods of analysis. The same diamond may be evaluated differently each time it is submitted to a laboratory. The accuracy of a grading report, its authenticity, date, and the lab that issued the report can all have an impact on value. Readers should be familiar with GIA terminology and grading standards to use the Price List effectively.

HOW TO READ THE PRICE LIST

The example shown here is an excerpt from the Round Rapaport Price List dated April 1, 2005. Each size range of diamonds has its own price grid matrix. For smaller sizes under 0.30 carat, the price grids refer to parcels of diamonds with color and clarity ranges. For stones larger than 0.30, each color/clarity combination has a price. All prices are in hundreds of U.S. dollars per carat.

SINGLE STONE PRICES

To locate the price for a 0.34 carat H VS2, first select the 0.30 to 0.39 size matrix. Find the H row and then locate the VS2 column. The number is 18, or $1,800 per carat. The stone’s price is 0.34 x $1,800 or $612 for the stone. Similarly, the price for a 0.39 K VS1 is 13 or $1,300 per carat, or $507 per stone. If the stone sold at a 25 percent discount, its price per carat would be $1,300 x 0.75 = $975/ct. and the price per stone, $975 x 0.39 ct. = $380.25.

PARCEL PRICES

To locate the per-carat price for a parcel of 0.18 to 0.22 carat diamonds with an average color of I-J and clarity SI2, select the 0.18 to 0.22 carat size matrix. The I-J row and SI2 column show 8.0 or $800 per carat. The value of the parcel would be the carat weight of the parcel times $800.

MIXED PARCELS

Consider a parcel of 0.30 to 0.39 carat diamonds that average F to G color and VVS1 to VVS2 clarity. Given the F-VVS1 price of 36 ($3,600 per carat) and the G-VVS2 price of 29 ($2,900 per carat), the average price is calculated at 32.5 or $3,250 per carat. This approach works well based on the general principle that the Price List should be used as an indicator of value and not as a final price.

HOW TO READ THE TRADE SHEET

TRADING DATA: SELL AND BUY LISTING

The Rapaport Diamond Report publishes select monthly listings of stones for sale by members of the trade. Expanded listings of buy and sell requests are available on the internet at RapNet Diamond Trading Network at www.diamonds.net.

The Sell Listings are presented in the following format: Shape, Size, Color, Clarity, Grading Lab, Rap Specification, Price/Ct., Discount percent.

SELL LISTING

Shape:

First letter(s) for fancy shapes. Blank for round stones.

Size:

In carats. For parcels, we list by average size.

Color:

D to Z with a special listing category for fancy colors.

Clarity:

IF to I3 with an SI3 (SI2/I1) split grade.

Report:

First initial of lab. G=GIA, A=AGS, I=IGI, E=EGL etc. N=no grading report.

Spec:

Rapaport Specification for stones. No Rap Spec for fancies.

Price:

In U.S. dollars per carat, net to buyer.

Discount:

The percentage below the List prices the diamond is offered for sale.

BUY LISTINGS

The Buy Listings provide market buyers with an opportunity to broadcast their needs to many suppliers quickly and efficiently. The buy requests are posted on RapNet and are regularly reviewed by major suppliers across the globe. The buy data provides an indication of what items are currently in demand.

Please Note: The Sell Listings are a valuable source of information regarding availability. They also provide information about discounts for particular categories of stones. An overall average of discounts is also published at the end of the Sell Listings.

Due to space limitations, only a small sample of best-priced diamonds from the hundreds of thousands of stones listed on RapNet are published in our monthly Report.

Prices for the stones listed in the Rapaport Diamond Report are not controlled by Rapaport and reflect actual asking prices in the market. RapNet members have access to a larger selection of stones for sale and deal directly with each other.