Canadian Diamond Play Cafi Message Board

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Gold/Mining/Energy : Canadian Diamond Play Cafi

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To: james flannigan who wrote (7573)	1/1/2014 3:55:50 PM
From: WillP	Read Replies (1) of 16213

Only one in 10,000 of all diamonds are yellow, and less than 1 per cent of these radiate the inner fire that makes them "fancy" - their rarity commanding prices two or three times that of a white diamond. James, I just cannot find support in the rough diamond data for the claim that a yellow fancy commands triple the price of a D-flawless gem. But even if it were the case, the mathematics does not support your enthusiasm: Assume 10 per cent of commercial diamonds are yellow, and 0.5 per cent of those "radiate the inner fire that make them fancy." Well that works out to 0.05 per cent of all the diamonds having triple the value. Try some numbers. For a white population averaging $200 per carat, let's say that the top 0.5 per cent are worth an average of $5,000 per carat. If so, then the other 99.5 per cent are worth $175 per carat. Now, make 10 per cent of the diamonds yellow, with the top 0.5 per cent worth $15,000 per carat. The average value of the entire parcel rises to only $205 per carat. Significantly improving the size distribution curve would add much more to the average value. Will

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