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CHART 1 (Click to enlarge)

  "Mind The Gap"

Analyzing the gaps in fancy color grades
February 15, 2012


When we first launched GemePrice™, Gemewizard®'s new fancy colored diamonds pricing system, at end of last year, we received feedback from several gemologists and diamond dealers, commenting on the seemingly large gaps between the fancy color grades that we originally had in the system. Although we displayed six fancy color grades (Fancy Light, Fancy, Fancy Intense, Fancy Vivid, Fancy Deep and Fancy Dark), they expressed the need to differentiate between the qualities within each color grade.

What these gemologists suggested, for example, is that we needed to distinguish between a "low" color quality fancy color grade, which is closer to Fancy Light, and a "high" color quality, which is closer to Fancy Intense.

In our original considerations for GemePrice™, on the issue of balancing between the need for more information versus keeping the pricing system simple and easy to use, we inclined toward the latter. However, we could not deny the merit in the comments we received. Furthermore, and after consulting with numerous experts, headed by the gemologist and author Richard Wise, we decided to add additional sub-grades to each main fancy color grade (with the exception of Fancy Deep and Fancy Dark). Thus, we distinguish between Regular, Fine and Extra-Fine color qualities within each main color grade.

In this month's issue, we will present the relative price variations between the main fancy color grades as they currently appear in our database, which includes more than $100 million worth of fancy colored diamonds and gemstones currently being offered for sale on the Internet by leading traders. We selected the 1.00-carat pure yellow colored diamond as our candidate for the comparison.

We began by scanning our database several times, searching for 1.00-carat straight yellow colored diamond prices, each according to a different fancy grade, from Fancy Light to Fancy Dark. Marking the Fancy Yellow average price as our reference point (100%), we then compared the average price obtained for each grade within it.

The results are displayed in Chart 1, and they indicate the following:
- Fancy Light, the lowest fancy grade, is 37% below the average Fancy Yellow price.
- Fancy Intense Yellow is approximately 51% above the average Fancy Yellow price.
- Fancy Vivid is 149% above the average Fancy Yellow price and 64% above the average Fancy Intense price.

The darker yellow colors showed an opposite tendency.
- Fancy Deep was almost the same as Fancy at 3% below, hinting that Fancy Deep Yellow is considered by the trade as equal to Fancy Yellow in price.
- Fancy Dark showed a decline in price with average of 26% below Fancy Yellow.

As demonstrated in the analysis above, the gaps between the grades are quite high (26% and higher) and truly merit dividing the main grades into sub-grades. These results support the adding of the three grade qualities, "Regular," "Fine" and "Extra Fine," for each fancy color grade in the GemePrice™. They greatly enhance the color and pricing resolution, thus assisting the user in better locating the desired color and improving the accuracy of the pricing data provided.

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