Rarity

I'm sure GIA has these stats but don't know whether it is open to the public...

However if, as you said, value represents rarity, would the price give you the rarity picture?

For example, H-SI1 diamonds of 2A cut grade:

0.5 crt - $1,240
1.0 crt - $4,740
1.5 crt - $9,080
2.0 crt - $13,700

Same exercise can be done with other grades.

As for the cut, GIA published the results of recent cut study of 67,000 diamonds. Only 3% were cut to achieve ideal brilliance.

We know there are substantial stockpiles of many kinds and sizes of diamonds. But, we don't know what kinds or sizes. One must assume that no size or type is really "rare".

What we have is a carefully marketed product in a finely crafted environment. Limitation of supply, advertising creating demand, and a grading structure that fits a simplistic approach to "quality". This is what we have to construct "value".

With this all in mind, what can we say about rarity and value that will ring true? I think if we say nothing, it may well be better than misleading anyone further.

Don't get me wrong however. I love the diamond business, as a business. I have a very substantial financial commitment in diamonds and other gems, so I don't wish to injure the market structure. I don't think it of any great benefit to further foster a tall tale about rarity when it is "perceived value" that people really are searching for when it comes to diamonds.

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David Atlas
Accredited Gem Appraisers

David S. Atlas

GG(GIA), ASG, Sr. Mbr. NAJA

www.datlas.com