Pricing question

[makewayhomer]

if you go on Blue Nile and search within these parameters:

1.50 - 1.55 Carats
I Color
Ideal Cut
SI1
GIA Certification
Excellent or Very Good Symmetry and Polish

you see a handful of diamonds, about 8. prices range from about $5,400 per carat up to over $7,000 per carat. there doesn't seem to be any correlation between price and how the stones do on the HCA.

what gives? why is there such a price variance amongst diamonds which are indistinguishable in the major customer facing measures?

it was my understanding that the 4 C's were the biggest drivers of price, but this doesn't seem like it's the case. does it more have to do with the "brilliance" that is harder to put into #'s? When the cartel determines pricing, is this really what it comes down to?

 

[Paul-Antwerp]

The problem is that if you ask a rep at Blue Nile, they will not be able to explain the price-difference.

Live long,

 

[makewayhomer]

well that's why I'm asking here!

is it factors that can only be seen by the eye and not quantified? or does it just have to do with commodity pricing, like how oil just sometimes gets cheaper or more expensive, even though its always just oil.

 

[Lorelei]

Date: 5/20/2010 10:00:32 AM
Author: makewayhomer
well that's why I'm asking here!

is it factors that can only be seen by the eye and not quantified? or does it just have to do with commodity pricing, like how oil just sometimes gets cheaper or more expensive, even though its always just oil.

Hi Homer,

BN are a drop shipper, they don't actually see the majority of the stones to advise the customer as far as I am aware. As to pricing variations there can be so many reasons why the BN rep might not be able to advise without having the necessary expertise or being able to see the stone. Some of the reasons can be due to cut quality ( the term Ideal Cut is very open to misuse and is no guarantee of a well cut stone), whether the diamond is eyeclean or not, current pricing and fluctuations, actual weight and resultant price jumps and many other reasons. Without seeing the stone and having the experience to judge them its very difficult to answer why one stone might cost considerably more than another and as the majority of BN's stones are not in house, plus we do not know the expertise of any given rep, you can begin to see why this question can be difficult to answer.

 

[makewayhomer]

ok, thanks.

at a higher level, given the 8 or so diamonds that fit the criteria I listed above, does more expensive = better every time?

 

[denverappraiser]

There is very little direct connection between price and HCA scores.

Prices are set by dealers based on what they think they can reasonably expect to get for a particular stone in a competitive marketplace. Dropshippers like BN are representing several different dealers and are applying their markup based on whatever their supplier is charging, regardless of how they came by that price. They don’t all use the same methodology but the big differences generally have to do with their estimation of the grading accuracy, eye visibility of inclusions and similar details not found on the reports and details of cut grading as well as their opinions on the relative merits of things like polish and fluorescence. There are also ‘value added’ features like the additional paperwork that comes with their ‘signature’ line. Lastly, there are completely non-gemological attributes like how eager the seller is to make a quick deal, how badly they need the money or BN's credit rating with that particular supplier that can come into play.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[tyty333]

Honestly, if you want to work with a drop shipper you would probably be better off going up to a VS clarity stone. A lot of SI stones
are not eye-clean and since they are drop shippers they wont be able to tell you. You have a better chance of getting eye-clean with
a VS stone.