What’s a “fair” price? – A philosophical question ...

[EmeraldCutQuest]

I got to thinking how one determines what constitutes a ‘fair price’ for a diamond. I think most consumers are willing to pay such fair price, are happier if they feel they got ‘a deal’ (whether based on fact or not), but mostly want some assurance that they weren’t ripped off.

In some cases, there are tons of ‘comparables’, so figuring this out is simple. If I am looking for a 1ct. (+/-) RB, with certain cut, clarity, color, and numbers, I can find several similar ones, and slightly adjust the parameters (if need be) in a way that I believe is reasonable.

But, if I am looking for a larger, fancy cut, this becomes more problematic; there just isn’t enough inventory to make reasonable comparisons. So the ‘adjustments’ tend to be more diverse (i.e., many of them) and also deeper. For example, if a well-cut 2.5ct. cushion cut, H, VS2, VG, VG sells for $21K, what should an equivalent 2.8ct., J sell for?

Another way of looking at this: are there ‘rules of thumb’ of how much one needs to adjust (in dollars or percentage) for each level change in color, clarity, weight, etc.? And since ‘cut’ and ‘how does it look?’ (both which are critical for fancies) are not quantifiable, are consumers just at the mercy of ‘fair is whatever the market will bear’?

Food for thought.

--ECQ.

 

[kush]

I am facing that issue right now. Trying to get a 2 ct cushion and even among E vs1 that are vg/g the pricing is so varied. I have limited it to no fluorescence and culet and length to widths of 1.05 or less and there is still substantial differences in price. To make the matter worse, there is the cushion briilliant and the modified cushion and some dealers tell you that there are less of the cushion brilliants out there so if you like them, you should grab them. VERY DIFFICULT!