A new reality came to be in the US through the successful marketing campaign launched by De Beers that you need to propose with a diamond ring in order to get engaged. Jumping on the bandwagon, retail jewelry stores all across the country started to flourish to cater to the public’s diamond cravings.
Access to diamond jewelry became relatively easy but the question of how much should you pay for a particular diamond came to people's minds. They knew then that it would take about two months' worth of salary, thanks to De Beers. But, then, what are the expectations that amount can provide?
Respectable American jewelers distinguished themselves from the unscrupulous ones by establishing themselves as trustworthy professionals. People commonly had a doctor, an attorney and a personal jeweler whom they trusted for their opinions. The matter of getting good value was simply left by the public to the trusted opinion of their personal jeweler as there was no real way to determine value.
The problem of determining value was more pronounced for those engaged in the Diamond trade. A broker would show a particular diamond to a dealer with a price based on the quality but the dealer may reject the purchase claiming that the diamond is of lesser quality. Trust and the individual’s experience were the primary factors that worked things out.
The quality characteristics of diamond needed to be standardized using a common system. A non-profit organization founded in 1931, known as the Gemological Institute of America (GIA), created such the famous “4C’s of diamonds” scale. The basis for the evaluation under that scale were Cut, Carat, Color and Clarity.
Diamonds from the trade were passed on to GIA for the purposes of evaluating them and generating a diamond grading report. The report included comprehensive details about the diamond with a plotting diagram indicating the size and position of clarity characteristics but not the dollar value of the diamond. Since GIA was not into buying or selling diamonds, the organization's reports were viewed as objective and quickly became trusted and respected worldwide.
While the grading report was valuable to the diamond trade since there was no longer arguing the qualities of diamonds, the price, however, still remained an obstacle to many transactions.
In the mid 1970's, a diamond cleaver from Antwerp by the name of Martin Rapaport arrived in the New York diamond market. He worked as a broker and began the compilation of NY diamond trade asking prices which he monitored regularly. He presented his findings in a weekly report called The Rapaport Price List or more commonly known simply as the "list" that generated much commotion in the market. People questioned the accuracy of the prices listed and some viewed it as somewhat making a commodity out of diamonds when they are not. They feared that diamonds would lose their inherent allure if they are treated as commodity with a price list.
The price list, nevertheless, endured and diamonds were traded at prices expressed as a percentage off the list, at list and above the list price depending on the rarity of the diamond. The price list only considered the carat, color and clarity for round shaped diamonds but did not refer to how well the diamonds were actually cut. Taking into consideration the rarity and exceptional cutting, people were able to command higher prices than the price list, but there was a common base to start from, at least. Later, a price list for Pear Shapes and other non-round shapes was introduced.
For more information on this topic visit our Diamond Education & Resource Center
Princess Cut Diamond Engagement Rings Over 18,000 certified diamonds to choose from!
Access to diamond jewelry became relatively easy but the question of how much should you pay for a particular diamond came to people's minds. They knew then that it would take about two months' worth of salary, thanks to De Beers. But, then, what are the expectations that amount can provide?
Respectable American jewelers distinguished themselves from the unscrupulous ones by establishing themselves as trustworthy professionals. People commonly had a doctor, an attorney and a personal jeweler whom they trusted for their opinions. The matter of getting good value was simply left by the public to the trusted opinion of their personal jeweler as there was no real way to determine value.
The problem of determining value was more pronounced for those engaged in the Diamond trade. A broker would show a particular diamond to a dealer with a price based on the quality but the dealer may reject the purchase claiming that the diamond is of lesser quality. Trust and the individual’s experience were the primary factors that worked things out.
The quality characteristics of diamond needed to be standardized using a common system. A non-profit organization founded in 1931, known as the Gemological Institute of America (GIA), created such the famous “4C’s of diamonds” scale. The basis for the evaluation under that scale were Cut, Carat, Color and Clarity.
Diamonds from the trade were passed on to GIA for the purposes of evaluating them and generating a diamond grading report. The report included comprehensive details about the diamond with a plotting diagram indicating the size and position of clarity characteristics but not the dollar value of the diamond. Since GIA was not into buying or selling diamonds, the organization's reports were viewed as objective and quickly became trusted and respected worldwide.
While the grading report was valuable to the diamond trade since there was no longer arguing the qualities of diamonds, the price, however, still remained an obstacle to many transactions.
In the mid 1970's, a diamond cleaver from Antwerp by the name of Martin Rapaport arrived in the New York diamond market. He worked as a broker and began the compilation of NY diamond trade asking prices which he monitored regularly. He presented his findings in a weekly report called The Rapaport Price List or more commonly known simply as the "list" that generated much commotion in the market. People questioned the accuracy of the prices listed and some viewed it as somewhat making a commodity out of diamonds when they are not. They feared that diamonds would lose their inherent allure if they are treated as commodity with a price list.
The price list, nevertheless, endured and diamonds were traded at prices expressed as a percentage off the list, at list and above the list price depending on the rarity of the diamond. The price list only considered the carat, color and clarity for round shaped diamonds but did not refer to how well the diamonds were actually cut. Taking into consideration the rarity and exceptional cutting, people were able to command higher prices than the price list, but there was a common base to start from, at least. Later, a price list for Pear Shapes and other non-round shapes was introduced.
For more information on this topic visit our Diamond Education & Resource Center
Princess Cut Diamond Engagement Rings Over 18,000 certified diamonds to choose from!
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