Have you ever dreamt of owning a fancy color diamond of the highest quality but yes with a lower price tag? Science has made it possible to duplicate the process followed by Mother Nature and which rivals the real thing in both beauty and sparkle. The end result is that we are coming into an era where the sale of lab manufactured diamonds is going to challenge the annual billion dollar sales of natural diamonds.
American Diamond manufacturers like Apollo diamonds use laser cutters to cut seeds from diamonds and then expose these seeds to carbon gas inside a vacuum chamber. The carbon atoms start sticking to the seeds and a diamond can be formed in 2 to 3 weeks. Elsewhere other corporations use imported Russian machinery to recreate the intense heat and pressure filled conditions during natural diamond formation. The introduction of carbon into this controlled environment results in the formation of shiny yellow or canary diamonds. These diamonds are also known as cultured diamonds. Only an expert eye with the aid of a microscope can distinguish them from their real natural counterparts. The laboratory generated diamonds can hugely open up the diamond wholesale market with their cheaper prices and greater accessibility.
The sudden eruption of this technology had diamond majors scurrying for cover. De Beers went to the extent of saying that these cultured diamonds were imitations and degraded the most precious stone in the world. De Beers has also started supplying gemologists with equipment to distinguish natural diamonds from lab cultured o
Tuesday, November 3, 2009
Pricing of Diamonds
In the Diamond Industry there are many ways to price Diamonds .The pricing can be attributed to the pricing guidelines and the channels of distribution used in select market areas. These market areas influence the policies behind setting the prices for Diamonds in different zones. The jewelry industry regularly monitors these pricing guidelines.
The Diamond sight holder or the company which purchases rough Diamonds form De Beers applies mathematical formulas to the original price paid for the rough Diamond. These calculations are then used as a base for determining the final selling price of the polished Diamonds. These polished diamonds are then sold to Diamond dealers, wholesalers, brokers, jewelry retailers and manufacturers.
The polished Diamonds quality grades (Color, Clarity, Cut and Carat weight) have to be certified by an independent company. After the quality grades have been certified the fair market value of the fine polished Diamond can be identified.
The rough Diamond purchaser or the Diamond sight holder calculates the selling price of the polished Diamonds by adding the cost of cutting, financial carrying cost, cost of the rough Diamond and profit to the polished Diamond.
When the Diamond reaches the market in the Diamond Dealers Club through the cutter, a Primary market is established. This primary market is made at the same price level and the Diamonds are directly offered for sale to the public through this channel.
The Diamond sight holder or the company which purchases rough Diamonds form De Beers applies mathematical formulas to the original price paid for the rough Diamond. These calculations are then used as a base for determining the final selling price of the polished Diamonds. These polished diamonds are then sold to Diamond dealers, wholesalers, brokers, jewelry retailers and manufacturers.
The polished Diamonds quality grades (Color, Clarity, Cut and Carat weight) have to be certified by an independent company. After the quality grades have been certified the fair market value of the fine polished Diamond can be identified.
The rough Diamond purchaser or the Diamond sight holder calculates the selling price of the polished Diamonds by adding the cost of cutting, financial carrying cost, cost of the rough Diamond and profit to the polished Diamond.
When the Diamond reaches the market in the Diamond Dealers Club through the cutter, a Primary market is established. This primary market is made at the same price level and the Diamonds are directly offered for sale to the public through this channel.
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