Diamond Prices Going Up?

[lovewhitediamonds]

Noticed that the price of diamonds have gone up in the last week. I''ve heard that it is because the price of "rough" has gone up. Is this increase also due to the holidays? Do the prices fluctuate during the year?

Thanks for any info....

 

[oldminer]

The price of any particular diamond is set by the individual seller. It is set partly on the gut feeling the seller has about the competitive market and partly by other factors which may or may not pertain to a particular diamond.

The "Value" is dictated by the broad, open market ind is not based on what any particular selling price an individual seller sets on their diamond.

Rough going up may encourage asking prices to rise. It also makes for ''bargains" to be found among diamonds where the price has not been changed. "Prices" always fluctuate. "Value" changes in a much more smooth fashion over time due to supply/demand and other market constraints.

Few things are going "down" for US consumers. I would naturally assume diamonds will go "up". My own feeling is the value of US currency is the thing going "down".

 

[Nicrez]

As of Nov 30th RAP prices went up for rounds from 1CT-5CT (D-M color) IF to VS. In shaped stones from 1ct to 5ct (D-M color) IF-VS as well...

If the market anaysts are thniking prices will increase (aka: RAP increases), it then costs more to BUY the stone, it will cost the consumer more as well. natural flow of the market.

 

[Eva17]

Nicrez, you mention up to 5 in fancy, how about over 5. Doesn''t that go up at the same time.

 

[lovewhitediamonds]

or is there a % increase per carat .... ???

up to 1ct= X% ?
1ct -2ct= X%
2ct-3ct =X%
3ct-4ct =X%
4ct-5ct =X%
5ct+ =X%

 

[oldminer]

Rapaport "prices" are for interdealer negotiatiing more than any other useful purpose. They are sort of an insider''s code with misleading and vague information which is best left to dealers to "understand".

I have heard more than once when Rap prices went up that it was dealer pressure on Rapaport to increase them because profit margins were so low and his price sheets were in such wide circulation as "retail" guides to the public. It is a believable scenario although I am sure that these days the costs of diamonds for Americans are rising and may well continue to rise faster than for folks using other, stronger currencies.

Larger diamonds of better quality are definitely scarce in supply. While normal sized diamonds have become readily shopped for price, the large stones have retained quite a good level of mark-up. Scarcity is playing a major role in large diamond price increases.

 

[Nicrez]

Date: 12/3/2007 2:19:32 PM
Author: oldminer
Rapaport ''prices'' are for interdealer negotiatiing more than any other useful purpose. They are sort of an insider''s code with misleading and vague information which is best left to dealers to ''understand''.

I have heard more than once when Rap prices went up that it was dealer pressure on Rapaport to increase them because profit margins were so low and his price sheets were in such wide circulation as ''retail'' guides to the public. It is a believable scenario although I am sure that these days the costs of diamonds for Americans are rising and may well continue to rise faster than for folks using other, stronger currencies.

Larger diamonds of better quality are definitely scarce in supply. While normal sized diamonds have become readily shopped for price, the large stones have retained quite a good level of mark-up. Scarcity is playing a major role in large diamond price increases.

Interdealer pricing it is! Absolutely. But everyone who buys (well except those who have their own mining, like TCO) will be subject to BUYING at higher prices for the rough or polished goods. Sure dealers want their profit margins to go up, but in the end, it is a free-market.

If price increase wasn''t across the board and only done by those dealers who want more profit, the increase would not be sustainable, as polished and rough can be then purchased by someone new willing to work with less profit. This is one reason why DeBeers was slapped on the wrist. Their hold of supply and control of pricing.

But I agree with you on the US market getting worse. Europeans are making a good penny off of buying elsewhere and selling to a stronger dollar (if they have US offices and US accounts). But again, as we have seen before if the dollar falls too low, the Sterling and Euro will not be far behind...

 

[Paul-Antwerp]

Date: 12/3/2007 11:28:48 AM
Author:lovewhitediamonds
Noticed that the price of diamonds have gone up in the last week. I''ve heard that it is because the price of ''rough'' has gone up. Is this increase also due to the holidays? Do the prices fluctuate during the year?

Thanks for any info....

If you are refering to last week, indeed Rapaport prices went up. But in the trade, we already know for a long time that Rapaport-pricing has not followed the trend of actual inter-dealer-pricing at all in the past years. In reality, in the past years, Rapaport has not increased as much as inter-dealer-pricing has.

Also, today, I read an article about average retail-pricing of jewellery increasing 3% in price in November.

None of this has anything to do with the holidays. It is just basic supply and demand. And of course, decreasing USD does not help.

Live long,

 

[DBM]

Date: 12/3/2007 2:52:52 PM
Author: Paul-Antwerp

Date: 12/3/2007 11:28:48 AM
Author:lovewhitediamonds
Noticed that the price of diamonds have gone up in the last week. I''ve heard that it is because the price of ''rough'' has gone up. Is this increase also due to the holidays? Do the prices fluctuate during the year?

Thanks for any info....

If you are refering to last week, indeed Rapaport prices went up. But in the trade, we already know for a long time that Rapaport-pricing has not followed the trend of actual inter-dealer-pricing at all in the past years. In reality, in the past years, Rapaport has not increased as much as inter-dealer-pricing has.

Also, today, I read an article about average retail-pricing of jewellery increasing 3% in price in November.

None of this has anything to do with the holidays. It is just basic supply and demand. And of course, decreasing USD does not help.

Live long,

paul, maybe you might know, did Rapaport ever put out any sort of publication or document with some sort of general outline of the calculations and algorithims he uses to arrive at his numbers? where could i find that? just curious...

 

[Paul-Antwerp]

If it would be based on any calculations or algorythms, it would change more often, and in a much less organized way.

Live long,

 

[DBM]

understood. thx

 

[CaptAubrey]

Date: 12/3/2007 5:15:44 PM
Author: DBM

paul, maybe you might know, did Rapaport ever put out any sort of publication or document with some sort of general outline of the calculations and algorithims he uses to arrive at his numbers? where could i find that? just curious...

To my knowledge Rap does not and has never relied on mathematical formulae to produce his list.

A year or two back, largely in response to Charles Wyndham''s anti-Rap rantings, there was an issue of RDR that went into some detail about how they create the lists. I don''t remember which issue, but maybe someone remembers and can locate it.