RAPPAPORT PRICING ...THE MEANING OF

[windowshopper]

I DONT FULLY UNDERSTAND RAPPAPORT PRICE CHART AND HOW IT IS USED IN PRICING EVEN THOUGH IVE READ THE PRICESCOPE SECTION ON IT. WHAT EXACTLY DOES IT MEAN AND HOW IS IT USED. CAN ANYONE TELL ME THE CURRENT RAPPAPORT PRICE PER CARAT ON THIS DIAMOND AND IS THAT PRICE PER CARAT WHAT I SHOULD BE PAYING THE DEALER OR IS IT LESS OR MORE?

Emerald cut
3.64
E VS2
DEPTH 61.6
TABLE 65
GIRDLE IS MED TO SLIGHTLY THICK
POLISH VG
SYMMETRY GOOD
CULET NONE
FLUORESCENCE FAINT

10.07 BY 8.34 BY 5.14

 

[oldminer]

Let's just say the Rapaport price on your shape, color, clarity and weight in $7,000 per carat. What would such a number mean to you. The answer is virtually nothing, I'm afraid. You have no idea how to apply it to the quality of this diamond and every diamond has important differences not covered by color, clarity, shape and weight.




Whatever the Rap number is, you have no way to make a judgment as to how to apply it to your diamond. It is really dealer oriented information and nearly always used with consumers as a sales tool, sometimes in a deceptive way.




A competitive source will likely be able to sell you a diamond at retail, for less than the percarat price on Rapaport. This means the prices on Rapaport have very little to do with any sort of "wholesale asking price" as printed on the report, but more to do with "highest possible wholesale and low range retail" prices. Some diamonds may, on accasion, command a premium above Rap at the retail level. These generally would be super fine, branded rounds, not emerald cuts. Yet, many super fine, branded rounds do not sell for full Rap if you are a sincere and smart shopper.




Rap is much more likely to throw you off course than to help you much. I make it a policy not to give Rap prices to people as it seems more harmful than beneficial. I have told hundreds of consumers to run Pricescope searches for diamonds similar to the one they are considering and see how it compares. This is far less dangerous and much more educational. I reommend this strategy to you, too.

 

[diagem]

The price quote on the report is $15,000 per carat.

now its for you to decide the rest....

 

[denverappraiser]

Windowshopper,

Rappaport is a listing of high cash asking prices, at wholesale, for a large variety of stones. The listings represent an average value of many individual stones and it can be a problem you try to apply it to one particular stone. That’s the reason it tends to be so confusing. Rap reports that the actual price will range from Rap+15% to Rap-40% depending on the cut details of the stone. Wholesale will vary by another 10-20% or so depending on payment terms and market conditions (this means things like how desperate the seller is and/or how anxious the buyer is). Discrepancies in the grading can account for an additional discount of 20-40%.

Retail price, meaning the price for individual stones, is normally a markup from the wholesale of anywhere from 5% to 50% depending on the details of your market and what additional value elements that are included with the deal. This includes things like return privileges, financing, ‘free’ appraisals and the like.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[diagem]

But my advice to you, is not to mess with it, if you understood oldminer's advice, I agree with him 100%.

It will only confuse you more...

 

[windowshopper]

thanks to all of you-----------i am in no better position but i understand that RAP means nothing to me. Dave's advice is good-just compare to similar paper.....................

 

[reena]

i'd like to say that i support your switch from all uppercase to normal letters

 

[windowshopper]

Reena:

It must be annoying to you--all uppercase letters. Is it hard to read? Just curious (I do it alot-----so I will know to change)

 

[reena]

sorry windowshopper, you know i love ya -- there's just something about the allcaps that's super off-putting, for some reason. i think maybe it sounds like you're yelling.

but hey, to each her own!

 

[windowshopper]

Reena

And I am the most soft spoken person seriously--people are always asking me to repeat myself! Its actually just laziness.....I am a trerrible typer

 

[reena]