Sell Diamonds Boca Raton
Why is it so hard to value huge diamonds? I’m talking diamonds over 100 carats. Well, to begin, it’s actually easy to price small diamonds. This is because there is a much larger market for small diamonds and thus there are more buyers. With more buyers there are more sellers and more competition. And with the advance of online shopping, a potential client can search the web looking for the best deal. He or see can see that a 1.5 carat H VS2 stone is selling between a relatively small range, and buy accordingly. This is what sets the market. But with larger stones there are only a handful of buyers. So just since one buyer might pay $25 million, that does not necessarily mean the stone is worth $25 million. There could be other buyers willing to pay twice that or half that. Which is why pricing huge stones is almost impossible for the diamond mines that find them. Sell Diamonds Boca Raton.
This year a 357-carat diamond was found in Lesotho in Africa. Gem Diamonds specializes in finding enormous stones. But, as hard as it is for them to find the stone, it’s equally as hard to value it. So what they’ve started to do is cut, polish, and examine their own diamonds before putting them on the market. In the past Gem Diamonds would sell their big stones to a middle man who would then sell it to cutters. Now, they are making sure they aren’t getting ripped off. And it paid off when they sold the 357-carat stone for $19.3 million, their biggest score yet.
Gem Diamonds head of sales, Brandon de Bruin said, “There’s no such thing as an accurate valuation on these stones”.
Not only are there a limited amount of buyers for colossal diamonds, there are a limited number of stones themselves. In the past 10 years, only twelve diamonds bigger than 250 carats were found. The mines want to make sure they are maximizing their profit and not selling stones too cheap. In fact, super large stones have gone up in value while smaller diamonds have actually gone down slightly. Last month, Lucara Diamond Corp unearthed a diamond that weighs 1,111-carats and put a price tag of $60 million on it.
After a mining company finds a diamond, they want to sell it. Of course, since the stone is still rough, they rarely sell them to an end user. Most of the time they sell directly to a company who’s job it is, is to cut the diamond into smaller diamonds and redistribute them to jewelry stores or jewelry makers. And while there are plenty of small stones (the diamond market is estimated at $80 billion), large stones present a large problem because the mining companies don’t cut their own stones. Since they don’t cut their own stones their understanding of pricing is not as sharp.
So now, instead of selling directly to a middleman, Gem Diamonds is employing their own cutters. They hope this will help them analyze large stones better and therefore maximize how much they charge for them.