The Diamond Institute, Inc.
The Michelsen Rough Diamond Pricing guide has been published since 1988. With the
success of Mr. Michelsen book "The Art of Diamond Cutting" it was determined that the
most logical way to offer the rough diamond pricing guide was within the book where prices
are updated regularly. click here to order
It stands to reason that a higher quality stone will fetch a greater price than one of a lower
quality; therefore it must be expected that if there is order in grading, then there must be
order in pricing. Accurate and systematic grading of rough eliminates not only the guess
work but encourages fair trade practices, a vital ingredient in good diamond management.
By using the Michelsen Rough Diamond Index, the cutter can estimate the cost of polished
goods based on a recovery from sawable rough of 50% and 35% from makeables.
The pricing in the index is designed to coordinate with the break points already established
by the trade for polished goods. Greater financial rewards are therefore obtainable to the
cutter who can balance weight retention with correct proportions, as each point retained on
a 1 carat D flawless diamond is worth $110.00 at the wholesale level.
Prices are calculated on sawables based on a saw line in the middle of the octahedron,
however should the stone be appropriate for a 70/30 sawline, then an additional 20% can be
paid for the rough.
In order to determine what a fashioned diamond could be sold for at a wholesale level, the
cutter would need to subscribe to a diamond pricing guide, a number if which are already on
the market. Alternatively, they may develop their own, for such a self made list could be
compiled by systematically recording transactions incorporating:
The cost of the rough crystal form.
Optimal weight retention.
Cutting costs of $1.00 per point.
Wholesale distribution margin.
Supply and demand.
Local and economic conditions.
Position of the US dollar in relationship to international currency.
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