Price transparency: Diamond prices like gold rates
The diamond industry has a long way to go as far as price transparency is concerned. So much so that most consumers are not even clear about what transparency means. Hence, understanding what this term means in important.
Suppose you want to buy a pretty blue colour cotton dress that your friend bought from a chain store. She tells you the price, which seems feasible and you visit the store on the same day.
There, the salesperson quotes another price that leaves you confused. So you visit the same store in another location, expecting a better price. The salesperson at this new location tells you a completely different price.
All you wanted was a dress just like your friend’s. As a consumer, you couldn’t understand why it had a different price at each store. Even though it’s the same brand. Not only did it confuse you but it also made you doubt the brand’s pricing policy.
What is price transparency in diamonds?
Diamond prices work the same way. Every diamond jeweller you visit tells you a different price for a 1.00-carat diamond. The 4Cs (cut, carat, clarity and colour) of a diamond influence diamond pricing.
A slight change in any of these attributes will affect the pricing. Each diamond is different, no two are alike. For a buyer, it is difficult to keep track of how pricing works.
People trust gold rates because they are standardised. Each day, you can refer to a gold price index that shows you the current gold rate. Since gold prices are transparent, gold has a good resale value. It is considered a highly valuable asset.
Diamonds too are extremely valuable due to their rarity. But reselling a diamond is tricky. And that is due to a lack of standardisation. Unlike gold, there are very few indicators for diamond prices, some hardly reliable. And no one wants to risk unreliable sources when it comes to diamonds.
The right tools for diamond pricing
The first step towards price transparency is standardisation. It includes keeping a record of the prices. It is also essential that the prices are systematically updated from time to time. And all of this data should be accessible such that you can go back to it whenever needed.
Divine Solitaires has its own Nationwide Standard & Transparent Price List for its diamonds. This price list is updated at the start of every month and all of the brand’s stores follow it. It contains the price of all Divine Solitaires diamonds, as per their size and other attributes. Hence, with the change in the diamond prices, you can also know the best time to buy a diamond.
Divine Solitaires also releases a Solitaire Price Index around the beginning of each month. The figure on the SPI is an average of all the diamonds listed in the price list. The SPI also indicates the month-on-month as well as the year-on-year price trend.
With the help of these pricing tools, the Divine Solitaires digital solitaire experience helps consumers track diamond prices real-time. And diamond price transparency goes a long way in making this easier!
A diamond tracking mobile application may not be the first thing that will come to your mind when you hear …