Why are large diamonds so scarce?

[KristyDarling]

Me again.

Just wondering if some industry experts/vendors/aficionados can give me their guesses as to WHY large diamonds (2ct and above) are in such short supply right now? One Pricescope member''s guess was that suppliers are holding back rough in anticipation of future price increases. But if that''s the case, I''d expect that at least some vendors out there ARE selling large diamonds and profitting from the high demand. However, I''ve searched various vendor sites, and the selection of large stones is zero to extremely limited at best. I''ve also browsed B&M stores and found the same situation there -- even at the upscale shops where you''d expect to find quality large stones.

Anyone care to guess as to why larger diamonds are so very, very scarce right now? Also, when do you think they will start becoming more widely available? (say, after a price increase in early ''06?)

Thanks in advance!
Kristy

 

[Mara]

There are a bunch of old threads on rough prices increasing, reading those may assist.

I guess there could be many reasons, but I tend to think that because larger rough is more expensive but may not be as lucrative of a cut or a sale and possibly slower to move than smaller stones, so smaller rough is still the same price then people would cut more 1c stones vs 2c or 3c etc.

Larger stones have been in short supply since early this year and no one really has said they see them getting any easier to find. I am on the hunt for a ~2.4c stone starting early next spring but it could take me a while to find the right one. You will probably have to be VERY patient!

 

[valeria101]

Looking at the bright side... perhaps someone is trying to make three and five stone rings more attractive to buy? And those are not too bad either - with 'bargain' components of about 1 carat each or so!

Anyway, internet listings get thin above 1.5 cts just because. I remember that Paul Sledgers ('Paul Antwerp') explained that this is what is in demand hence the focus.

Regardless, if anything, I'd rather expect the 'little ones' to start catching up with the larger brethen, instead of larger ones going down, even if they do get more available.

Since you just need one (right ?), perhaps there is that much left around...

It may just take some asking for it if the kind and size is not withing the range thought after by the shops to stock or even put on a web list.

Just my 0.2. It can't hurt to call a seller and ask.

 

[JohnQuixote]

Date: 10/3/2005 1:00:29 AM
Author:KristyDarling
Me again.

Just wondering if some industry experts/vendors/aficionados can give me their guesses as to WHY large diamonds (2ct and above) are in such short supply right now? One Pricescope member''s guess was that suppliers are holding back rough in anticipation of future price increases. But if that''s the case, I''d expect that at least some vendors out there ARE selling large diamonds and profitting from the high demand. However, I''ve searched various vendor sites, and the selection of large stones is zero to extremely limited at best. I''ve also browsed B&M stores and found the same situation there -- even at the upscale shops where you''d expect to find quality large stones.

Anyone care to guess as to why larger diamonds are so very, very scarce right now? Also, when do you think they will start becoming more widely available? (say, after a price increase in early ''06?)

Thanks in advance!
Kristy

Hi Kristy,

It is hard to say how much ''holding back'' of rough there is. Conspiracy theories abound and are sometimes exaggerated. Of course, being paranoid doesn''t mean that they AREN''T out to get you...

One thing for certain is that pieces of rough material harder to find - they are increasingly rare with size. That''s why as carat weight gets larger the value of the diamond increases disproportionately. Every mine has its own yield, but it generally takes 5 to 10 tons of ore to produce one carat of diamond rough. Of course, this rough will have only about 15% gem quality material and 70-80% of that will be finished as diamonds <1ct. If you want to know the rarity of a D FL/IF of 1ct+, one estimate says that of 50 million+ carats of diamonds mined annually only a few thousand can be cut into a colorless, flawless diamond of a full carat or more - and this has nothing to do with cut quality.

On that note, some of our customers ask why it''s difficult to find ideal or superideal diamonds in large (3ct+) sized. The answer is the same one as why most diamonds on the world market are cut to average quality - you can save weight if you don''t shoot for precise numbers and fine-tune the diamond. Would a cutter polish a diamond into a superideal, AGS0 H&A at a finished weight of 3.88 carats when he could have a decent/average diamond at 4.02? No way. Those pieces of rough are too rare NOT to get that 4ct yield, and most buyers are not aware of the difference in cut quality anyway.

As for large ones coming available, you can always put your name in the hat with a favored vendor or two and ask them to keep an eye out for you.

 

[kenny]

Will this one do

http://www.whiteflash.com/diamonds/diamond_Details.aspx?itemcode=AGS-6426101

 

[Kaleigh]

Hey Mara and Alj, is that the one you saw at WF???

 

[kenny]

I clicked the "Matching Diamonds" button, for the other ear - I was thinking about the martini setting in white gold since I can't afford the platinum - but no matching diamonds came up.

Dang, guess I'm gonna have to buy that yacht after all.

John, could you do a pair in aluminum?

 

[oldminer]

Large diamonds are somewhat as rare as large money is somewhat rare. If sufficient money is around, diamonds somehow gravitate in that direction.

There is truly quite a small market for Ideal cuts, as John Q has implied. The market is better in more regular sized diamonds than for the super sizes. This may change over time, but for now, the primary buyers of larger diamonds probably don''t know to ask for "ideal", but want a large look and a good compromise on light performance.

 

[KristyDarling]

Kenny -- thanks for the laugh.

This is such great input from you all. If I''m going to be paying a huge markup for a hard-to-find stone, I want to know WHY, so having all this color from PS''ers is very helpful.

Feel free to keep the thoughts coming!

 

[Mara]

Kristy, you shouldn''t be paying any sort of huge markup for a ''hard-to-find'' stone, it''s just a matter of patience...the stones do become available at the prices one would expect but they are far and few between. The only ''markup'' between now and then would be if rough pricing increased yet agani and then finished prices would change accordingly. Unless you buy a branded stone like HOF or Eightstar, the regular H&A stones even some brands like ACA etc don''t carry that same insane markup like some retail.