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Ideal_Rock
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The intricacies and risks of diamond-cutting - new article by Paul-Antwerp
The intricacies and risks of diamond-cutting
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jasontb
Shiny_Rock
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Excellent! Cutting seems to be rarely discussed.
I am surprised at how small the margin for error is. Especially for a 'boutique' cutter like yourself. I would have thought, even taking into consideration the over-estimates you made, that your premium would have still had you covered.
And surprised that you are able to make such accurate estimates of the final product...particularly the carrat weight. You seem to know almost exactly what the size of a stone is going to be even when still holding rough. When you are cutting the stone...what drives a cutter to choose less than optimal angles or ratios? Are they driven there by inclusions they want to eliminate? If so then wouldn't most good cutters end up with a very similar final product? Then how do you get better cuts out of the rough than the average cutter? Or is it more in the rough you choose? Or perhaps because you work to optimize the cut while others may cut to optimize weight.
I am surprised at how small the margin for error is. Especially for a 'boutique' cutter like yourself. I would have thought, even taking into consideration the over-estimates you made, that your premium would have still had you covered.
Also surprised at how much rough is lost in cutting.
And surprised that you are able to make such accurate estimates of the final product...particularly the carrat weight. You seem to know almost exactly what the size of a stone is going to be even when still holding rough. When you are cutting the stone...what drives a cutter to choose less than optimal angles or ratios? Are they driven there by inclusions they want to eliminate? If so then wouldn't most good cutters end up with a very similar final product? Then how do you get better cuts out of the rough than the average cutter? Or is it more in the rough you choose? Or perhaps because you work to optimize the cut while others may cut to optimize weight.
linvillegorge
Rough_Rock
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Wow! Talking about a tough decision to make when buying rough diamonds... I had no clue! And we think we have it tough when trying to make a buying decision on the finished product! At least we know exactly what we''re getting! I couldn''t imagine having to try to estimate all of that information from rough stones...
MissAva
Ideal_Rock
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strmrdr
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Capitol Bill
Shiny_Rock
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Thanks for the great article, Paul! Very enlightening to look at the diamond business from the cutter''s perspective. When faced with such slim margins, it''s easy to understand why so many cutters succumb to the temptation to produce less-than-ideal stones to preserve as much rough weight as possible. This also is a good reminder why there are still so relatively few genuine ideal cuts out there. When you think about all the extra cost factors that go into crafting a stone to fit AGS-0 tolerances instead of aiming for the broader target of GIA Triple-Ex, the extra premium commanded by an AGS-0 seems like a relative bargain.
Bill Scherlag
Bill Scherlag
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Paul I find many people overlook the difference between grading rough and grading polished.
You need to guauge the inclusions that you keep in the stone, and those you leave out.
This is much harder in the rough.
You also have a much harder time grading color.
You grade clarity many times as you cut the stone.
And then when it is all done you do what labs do with the polished.
Labs make money for Jam
You need to guauge the inclusions that you keep in the stone, and those you leave out.
This is much harder in the rough.
You also have a much harder time grading color.
You grade clarity many times as you cut the stone.
And then when it is all done you do what labs do with the polished.
Labs make money for Jam
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diamondlil
Ideal_Rock
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yeewl
Shiny_Rock
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The average cutter will most likely go for more weight, also because there are more customers for average cuts with higher weight.
Also, there is a difference in focus. We are focused towards the best possible, and we can, because we have a smaller organisation. Bigger cutters cannot maintain the same focus, I think.
Live long,
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Hey Garry,
And do not forget: when you are buying, you often do not have the time or the capability of using many fancy tools. Forget about putting each stone on a Sarin or Helium first: the seller will not give you the opportunity.
And judging clarity is sometimes doable on a stone, after you put some windows on it, but that is absolutely impossible before you bought it.
Anyway, I should not complain. It is fun too, and sometimes, you are lucky with your estimate too.
Live long,
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Paul makes an excellent point. The vast majority of diamond buyers has not yet discovered PriceScope and the world of cut. Any visit to one of the Mall stores or the diamond department at Costco will be adequate proof of that. I would guess that the average cutter, cutting okay, but not wonderful stones would have gotten a profit off of that parcel.
Thanks for sharing that information with us Paul!
Wink
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FireGoddess
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DiaGem I think it is safe to say that:
1. if a diamond has less sparkles than another it is not as beuatiful as the other.
2. if a diamond has dark zones that most people think look worse than a diamond that does not have dark zones, then it is not as beuatiful as the other.
There is little doubt that Paul has established a business that specialises in more sparkly diamonds with no obvious bad appearances.
However Paul would not probably have the value added marketing and distribution method for these heavier (not larger) deeper stones. So he neeeds to continue to produce goods that keep his customers and reputation intact.
strmrdr
Super_Ideal_Rock
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Bingo Paul's niche that allows him to thrive is super-ideal cut diamonds sold thru a top notch dealer network.
Iv bought from 2 of his dealers and both rock!
That does mean he has to be untra careful in his rough selection to find the material to cut them from and lab grading just a hair different than predicted can be painful.
Paul, sorry to hear about your problem with this batch may the next make up for it :}
We want ya around here for a long long time to come!
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Garry, the reason i didnt agree is: I dont think the beauty of a diamond is measured in "sparkle", i think we both know that most other shaped diamonds have less "sparkle" than rounds, and consumers still think they are beautifull.
And if we take step cuts as an example, a large majority of them have what you call "dark zone"''s, but are still considered beautifull diamonds.
I agree with you on one thing, If you will compare the "sparkle" between a 6.3mm. round and a 6.6mm. round, you are a hundred percent right, the 6.6mm will probably have more sparkle (IF cut right), but please agree with me that it doesnt mean it will be more beautifull.
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Gary,
Thank you for stating this better than I could have. I was trying to think how to properly respond and continued to read while I thought, it is clear I can not say it any better, so I will just say thank you for stating it so well.
While this parcel may not be a money maker for Paul, it does add a depth to his inventory in nice sized stones that are more affordable than much of the rough that he gets from Canada which tends to be whiter and higher clarity, pricing some of his stones out of the reach of many.
What impresses me most about Paul is his ability to so closely grade the stones. What really surprises me is how little error is required to turn a nice profit to a small loss. His willingness to gamble on a parcel of makables rather than the usual sawables that he gets to get those more affordable goods also impresses me. I have been very priveledged to watch this whole process from the sidelines, it has been both fascinating and illuminating about the difficult road that the diamond cutters must walk.
Wink
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I assume you are talking about two diamonds of the same weight, one being a well cut 6.6mm and another being a deeper 6.3mm. I think you would definitely see a difference in the beauty of these stones to many observers. If you take it to the extreme of the 5.8mm 1.00ct stone that I appraised from a divorce which came from CostCo, I think you would agree with me that the stone is more a lifeless lump of crystallized carbon than anything beautiful. It had over a 70% depth, if my memory is correct more like 77% but it has been many years and I don''t remember for sure. (This was a round brilliant cut)
It was ugly enough that when the divorce was final I was offered the chance to buy the stone, cheap, and I sold it to an AGS store so that they could use it to demonstrate the difference between good, better and AWEFUL cutting. I already have a demo stone and sure did not want two of those kind of dogs in my house!
Wink
DiamondExpert
Brilliant_Rock
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jasontb
Shiny_Rock
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I'm still shocked that Paul needs to be making nearly *perfect* estimates to avoid throwing off his financials. This industry (or its customers?) is upside down and inside out. How can being a single color grade off kill you while having a amazingly cut stone can not make up for it? I'd rather have an H that Paul cut than a G that some idiot cut.
Who is forcing the pricing in this industry to be so messed up? Dealers or consumers? I'm assuming it's not the cutters - or is it?
What we need is somebody to stand up and start championing better cut diamonds.
Who is forcing the pricing in this industry to be so messed up? Dealers or consumers? I'm assuming it's not the cutters - or is it?
What we need is somebody to stand up and start championing better cut diamonds.
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Wow! Don''t sugar coat it!
The internet, DeBeers, desparately hungry cutters, retailers who won''t keep up with the times, and consumers wanting only the best stones at the lowest prices: all of these have a lot to do with why the cutters must be so precise.
DeBeers has gotten real efficient at sucking up even the tiniest perceived extra profit from the market. When cutters figured out how to take rough unacceptable to cut rounds and make good looking princess cuts from it, the price of the rough immediately went up. Same for trillions. I believe that DeBeers makes a higher percentage profit on diamonds than any one else in the chain, but I do not have figures to back that up.
The internet almost instantly lets anyone with the desire to do so find out who has the best prices for what stones, but it takes a LOT more time and effort to find out that color and clarity are not the only indicators of value, so many who sell inferior cut diamonds make a lot of sales because their stones are less expensive on a per carat basis. Caveat emptor applies here. Pricescopers are not usually the lawful prey of these vendors. Premium cut stones do demand a premium, but it is a small one, unless you are working with a vendor who sells Hearts on Fire, or EightStar, where the cutter is actually making a much healthier profit. (And selling fewer stones.)
Cutters, especially site holding cutters, must move millions of dollars per month and must pay for their sites in cash once every five weeks. When sites approach and cash is short, prices get real good, below cost if necessary to keep the sites coming. Many cutters have become disgusted with retailers who never want to buy, only to receive stones on memo and pay for things if and when they sell them. These cutters have turned to selling directly on the net, some under different names, hoping that their retail clients will not discover who they are, and some deciding, like WhiteFlash, not to sell at all to retailers, but to sell only direct to the public. (My compliments on their integrity!) Memo was once a brilliant marketing tool, but it has become an over used crutch that now threatens the very health of the diamond industry.
And retailers, ah retailers. I are one. Many of us cry and whine that we can not make a fair profit at the same time we squeeze the bejeebers out of our suppliers. Some will bring in a stone on memo, and when he has it sold, cry to the vendor that he will buy it, but only if he can get a better price. Some never buy anything if they can get it on memo, and most bitterly resent the internet as it prevents them from earning a fair living. A few of us have decided that joining our clients on the internet is a better way to go, and also have invested large sums of money in our educations, continuing educations, and in strange and sometimes wonderful, sometimes flawed, equipment. For example, a year ago I had never heart of the ASET. It was presented to the trade at the JCK show last year during the first week of June. Today it is one of my most valuable tools.
And consumers get to share the blame too. It is not uncommon for a consumer to call several vendors asking for the same diamond, and beating each of them up to see who will sell it for the lowest price. If this is a generic stone, why not, especially if several sites have it listed. But even with the Infinity stones it happens, but we are a small family and have chosen not to play that game.
So there are MANY MANY factors that go into your question. The reality is what it is, so cutters like Paul have to be incredibly accurate and concise in their grading estimations, or they will loose money. Perhaps, as in Paul''s case, this is because AGS was particulalry strict with this batch of stones, or perhaps it just is because the estimations were wrong. The fact is that Paul will do it tougher, and better next time, or pass on the parcel if it is not within his guidelines. This is a man who understands the market far better than I and although I dislike some of the things mentioned above, I love the diamond business. It is a business of making people happy, of answering questions and delivering a symbol of beauty and love to happy people. It really is one of the best businesses in the world, even though it is also a tough one to make a living in.
Wink
mdx
Brilliant_Rock
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Nice post Paul
An even tougher life is the life of a rough dealer who often has to deal with “run of mine goods”
That is a mine puts its weekly or monthly production up for tender unsorded.
These parcels can be around 2000cts of everything from smalls to say 3cts, macles cleavages, crystals, shapes, sawables and makables. Colors from white to tinted brown and the full range of clarities from clean to spotted
Worst is, you may only be allowed a hour or two to “make a price” as there may be another 10 dealers in line to offer.
Often you will be knowingly buying some part of the parcel at a loss in order to obtain the target stones in the parcel.
It’s a tough life in rough, maybe that’s why we are retailers these days
Johan
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