Rapaport Price
A well-educated consumer is always on the winning end of a bargain. So before purchasing anything that's worth thousands of dollars, it's always best to do a little research. This applies especially to diamonds since they are luxury items, not a necessity. How then, will a person know they're getting the best deal on a stone? In purchasing a car, there is a standard to which its price is compared. The make, features and how new it is determine the price of the automobile. In gauging these factors, the Kelley Blue Book reigns supreme. With this in mind, the Rapaport Diamond Report is the Blue Book of diamonds. Not only is the Report a sheet listing "high cash New York asking prices," but jewelers subscribe to the magazine to keep up with the latest news, issues, trends, and of course, diamond prices.
Developed in the late 70s and 80s by Martin Rapaport, buyers and sellers largely base their prices on this industry standard. There are numerous factors that will determine the price of a diamond such as carat weight, color, clarity and cut. Other factors include, but are not limited to: depth percentage, table percentage, polish and symmetry. It takes years of trading and selling to fully understand the nuances of the Rap Sheet, but it is well worth it to understand the basics to avoid being defrauded. As it is illegal to reproduce the price sheet, it can usually only be obtained through a jeweler.
The Sheet itself is divided into several categories, which include cut, clarity, carat and color. The prices are based on fine cut diamonds, so it is very possible for a diamond to be sold below the Rap price given that the diamond is of poor quality. When looking at the Rap Sheet (rounds have their own separate prices while fancy shapes are usually based on the pear cut prices although there is a separate one for princess and marquise shapes), one should begin by finding the carat weight, then the color range, then clarity. The end number should be multiplied by 100 to get the price per carat. Then that number should be multiplied by the carat weight to get the total price. Remember that this price is subject to change due to other specifications of the diamond (i.e. fluorescence, girdle), but this ballpark price gives a basic idea of the diamond's worth.