The Rapaport Diamond Report is the monthly wholesale diamond price list used by dealers worldwide to keep up with changing market prices. Even though it is commonly referred to the wholesale price list, in fact most dealers will not commonly pay the price listed on the form. They will typically pay 5-35% less. Keep this in mind when you are told that you are paying "wholesale".
The most important factors are size, shape, color and clarity of your diamond. But the prices given on the "Rap sheet" as it is known in the trade is NOT enough information to price a diamond. The number you find on the charts is only the starting point. That number needs to be adjusted by many factors, including every detail about the cut (proportions and symmetry and polish) as well as other quality factors like fluorescence. Price also varies hugely from the cutter to the store depending on the store's credit rating, how much they are buying from that source, whether this stone is being borrowed on memo to show you, or purchased for cash without a prospective buyer, etc.
The pricing of diamonds is somewhat complex but follows fair market value principles to some extent. It seems that everyone "knows" someone in the business and can get you a "deal".
Stores Sell for Less than the Listed Wholesale Price...
The Rapaport Diamond Report is intended for use in all situations in the diamond market. It is used by new, one-time buyers in New York City looking for a single stone, and it is also used by dealers who trade in millions of carats every year. So the prices on the Rapaport list are high cash asking prices used as the starting point for negotiations. Different dealers can buy at different discounts from this list. So there is a "bid" and "ask" price. The bid is what a buyer is willing to pay (commonly less than what the seller is willing to sell for, "ask"). This is where a negotiation comes in.
These discounts are the key. If your dealer is well-connected, he can buy at better discounts. If he is efficient and keeps costs down, by turning his inventory frequently and controlling his costs, he can offer you a diamond at such a good price that it's almost like buying wholesale. But it is complicated. Often he will keep the best stones and get them graded with the hopes of getting locked into a grade higher than he bought the stone at. This will take advantage of his expertise and allow him to sell the stone at a profit and still a good value as the differnce in prices between grades can be significant. Every shape sells at different discounts. Some shapes are not discounted at all. And these days, the cut grade of a diamond can make a huge difference in the discounts. Ideal cuts can actually sell for more than Rap, even to a dealer in the case of a super-ideal. There are enough dealers on the Internet now that prices and markups are sliding. But there is also enough demand on the finer goods, due to education on the net, that premium goods command premium prices, all the way up and down the channel. This makes it a good time to buy a diamond... if you shop and compare intelligently. Some shops are skilled at making a profit at your expense, so you have to be very careful. The key is knowing where to buy, and which stores are honest and which have the best prices. It is truely possible to pay double if you are an uneducated consumer and buy the first diamone you see in the mall.
And if you prefer to buy locally, please do yourself a favor and register to read the test results on the best of the 10,000 stores my staff and I tested in the U.S. over the past 7 years. Just enter your zip to find the best local jewelers. These are the ones that we tested and found to have the best combination of excellent prices, service, selection and expertise.
How To Find Out the Rapaport Price
The Rapaport price list is copyrighted, so you will have to ask your dealer (or a true friend in the trade) to see the latest copy of the Rapaport Diamond Report (which is published monthly). If you can find a copy, look up the per carat price for your diamond. Caution: Diamond prices are so complicated that it takes years of experience to use the Rapaport price list effectively. Even with the Rapaport list in hand, you need to adjust for 9 other factors not included in the list. Ask your jeweler for help or you will certainly make mistakes as you go.
Better Than Using Rapaport
Whether you have access to a Rapaport Diamond Report or not, we strongly suggest using the online price databases that list REAL prices on REAL stones, instead of monkeying around with price charts and formulas and calculations that will never be better than an educated guess. So now I do what I am telling you to do... Go to the Diamond Pricing Tutorial page that I wrote. It will guide you step-by-step to calculate a price for any diamond, in just a few minutes. This is now the fastest, easiest, and most accurate way to find out what your diamond should cost, without a doubt.
