# How much can a diamond in the rough be worth

## Price of rough diamonds

rough diamondPrice of rough diamonds

How do you determine the price of rough diamonds?

We will try to provide you with some explanations and information to make it clearer which different criteria go into calculating the price of rough diamonds.

### Criteria to consider

The following essential criteria influence the price of rough diamonds:

• The country where the purchase takes place: Africa, Europe, USA, etc.
• The country these diamonds are to be exported to: Europe, Israel, USA, India, etc.
• The method of payment: bank transfer, cash, COD, etc.
• The various costs: plane tickets, hotel, etc.
• The crystalline structure of the rough diamond must be checked with the greatest care in order to classify these diamonds in the various existing classifications: stones, shapes, cleavages, macles, flats.

Stone

Shape

Cleavage

Macle

Flat

The correct classification of the crystalline structure of rough diamonds is crucial when calculating the price. In fact, not all crystalline forms of diamond are equally profitable.

For example, in the case of a rough diamond (stone, octahedron), it can be assumed that a loss in the region of 50% can occur in the course of the cut. In other words: a diamond stone with a gross weight of 2 carats weighs only about one carat after being cut. But beware! It is possible that after the cut you will not get a cut diamond of 1 carat, but 2 cut diamonds, which together have a weight of one carat.

The price of 2 cut diamonds of 0.50 carat each is not the same as the value of a cut diamond of 1 carat. It is therefore important not only to rely on the calculations of the price one could get for the total value in carats, but to think about the number of diamonds that will be cut and the weight cut that the individual stones have will have.

In the case of a diamond of the crystalline form Shape or Cleavage the yield will be between 45 and 35% for a diamond with the properties Macle, Flat etc. but only between 28 and 25%.

### calculation

The price calculation for a rough diamond is carried out as follows (attention, all prices listed below are incorrect):

We are offered one 5 carat rough diamonds in Octahedral shape (Stone) on. He is perfectly shaped, has Color G and Purity VS2.

We know that with this crystalline form (stone) we can have a yield in the range of only 50% after grinding. That makes:

• 5 carat raw x 0.50 (50%) = 2.50 carat sanded.

We decide to cut 2 brilliant-cut diamonds of the same weight from this rough diamond. That makes:

• 2.50 carats: 2 = 1.25 carats (per cut diamond).

The Rapaport price for this type of cut, weight and quality is \$ 2,500 per carat. That makes:

• 2500 x 1.25 = \$ 3,125.

This gives us a total price of:

• 6 \$ 250 (3125 x 2).

We recommend buying at least 40% below the Rapaport price. That makes:

• 1.25 x 2500 x 0.60 (-40%) = \$ 1,875 (for one diamond), i.e. a total of \$ 3,750 (for the two diamonds).

In order to receive our purchase price for this rough diamond of 5 carats, it is sufficient to then add a percentage that corresponds to our trading margin, e.g. 50%. That makes:

• 3750 x 0.50 = \$ 1,875 (this would be our purchase price for this rough diamond).

So now we can calculate our purchase price per carat for this rough diamond. That makes:

• 1875: 5 carats = \$ 375 per carat.

### Price list for rough diamonds

Our website has price lists for rough diamonds (available by subscription) which you can use to determine the purchase price for rough diamonds according to the following criteria: crystalline shape, weight, color and purity of the rough diamond.

These lists are available in table format (see figure above). In them you will find the following information:

• Minimum and maximum weight of the rough diamond.
• A photo of the crystalline shape of the rough diamond.
• A brief description of the crystalline form of the rough diamond.
• The number of diamonds that can be cut from the rough diamond.
• The calculated minimum and maximum weight of the diamond after cutting.
• The color scale from D to N.
• The purity scale from IF (Internally Flawless) to P3 (Piqué 3).
• The purchase price per carat of the rough diamond in USD.

### Price simulator for rough diamonds

On our website we offer a simulator for calculating rough diamond prices (see figure below), which is accessible by subscription.

Thanks to its ease of use, you only have to enter the crystalline shape of the rough diamond, its weight, its color and its purity and the simulator will calculate the purchase price of this rough diamond for you.

With our simulator you will learn among other things:

• the best cut method (1 or 2 cut diamonds) depending on the value of the cut diamonds.
• the total weight of cut diamonds that can be obtained.
• the total price for the purchase of that diamond in the rough or an item of diamond in the rough.
• the ability to change the trading range.
• the ability to calculate the purchase price for a rough diamond for all crystalline forms: stones, shapes, cleavages, macles and flats.
• the possibility of converting the purchase price for a rough diamond into local currency.