I recently started looking for a suitable diamond engagement ring for my soon to be fiancée and I have to admit, I am quite confused by diamond prices and by the Rapaport diamond pricing list. When I visited my local jeweler and inquired about diamond ring prices, he pulled out this red sheet of paper, which he explained would help to determine the price of the diamond in question. I’m afraid to admit that I was totally baffled.

The Rapaport Diamond Report is used by diamond dealers, traders and vendors worldwide as a way of keeping updated with the ever changing diamond price market. Diamonds are said to last forever but their prices fluctuate dramatically from quarter to quarter. Diamonds are valued against the 4 C’s: color, clarity, cut and carat weight. For example, if a diamond has a high clarity weight yet is of low clarity and color, its price will substantially decline. All 4 factors must be taken into consideration when evaluating a stone. In addition, fancy colored diamonds (pink diamonds, red, blue green etc.) are priced on a separate scale, since they are extremely rare and usually priced higher, thus they require special attention and price grading.

To get the list you need to subscribe to the Rapaport magazine. However, if you are a simple consumer (i.e. you do not buy diamonds in bulk) you wouldn’t have much use for this list which carries worldwide wholesale diamond prices. If you wish to calculate diamond prices, the Rapaport websites offers its subscribers a diamond price calculator. The user enters the cut, clarity, color and carat weight of a diamond and then receives an estimate of its worldwide value.

Using the Rapaport list when buying diamond jewelry isn’t much recommended as a rule. Many experts claim that the prices listed on the report are not a fair estimation of the diamond’s value. The price on the report is merely a starting point. Since no diamond is identical, the price must be adjusted, taking into consideration the stone’s unique cut, color and clarity. Also, prices may change drastically from the stone’s cutter to the store carrying the stones, the price may be influenced by the store’s credit rating, whether they are buying in bulk, if the diamond is borrowed on memo etc.

So how do I make sure I’m not getting ripped off? 

The simplest way is to educate yourself as much and as thoroughly as you can about your upcoming diamond purchase. Start by going online and reading up on the four C’s of the diamond world. Also, it is always a good idea to check and compare online prices with the prices of your local vendors. Pick a jeweler you trust and don’t get too preoccupied with getting ripped off, your main concern should be picking something she would love.