In response to my question, I received responses from traders in diamonds, diamond brokers, representatives of diamond mining companies, industry observers and even a few people who were not directly involved in the diamond industry, at best diamond analysts. Some of them are quite familiar with the industry and are closely acquainted with a wide range of figures in the industry (they even participate in their formation in the course of their constant work, for example, in sales).
I myself thought that the answer to my question is a few hundred dollars. It was based on the understanding that there are many small diamonds with a low average price per carat, so low that they will pull the average price for a diamond to such a level that it will statistically affect the overall figure.
Interestingly, most of the answers people gave were close to mine, and almost all of us were wrong. The interval of the values received in response was broad, and by and large reflected the opinion that most of the goods are cheap (true), mostly with low color indices (also true), and in large part smaller - less than half of the carat (again correctly) . The figures varied from $ 100 per carat to a value well above $ 10,000 per carat.
SO, HOW TO DETERMINE THE AVERAGE PRICE?
Probably, there are several approaches to this issue, and the following method is very reliable. It is based on proven figures, well-studied data, such as the percentage of diamond quality diamonds from total diamond production and the diamond output of polished diamond producers - the average weight of the diamond versus the rough diamond from which the diamond was obtained.
DATA COLLECTION
In 2013 - the last year for which all figures are available, the total world diamond output was 130,482,194.53 carats, according to the Kimberley Process (KP) Annual Global Summary.
The world's annual output of diamonds is divided into diamonds of technical quality and of jewelery quality. The ratio between these varieties is different from the mine to the mine, from the tube to the tube and even on the same tube. ALROSA, the world's largest diamond producer in terms of volume, reported in 2013 and 2014 that its production volumes (in carats) of quality jewelery diamonds rose to 70% of total diamond sales, and in 2012 this figure was 67 percent.
According to the world diamond report of Bain & Co. Journey Through the Value Chain, about 55% of the world's production volume is made up of gem quality diamonds. This category actually includes an assortment of goods, known as "quality close to jewelry", which were not previously considered as jewels of jewelery quality. But over the years these stones have been added to the offerings of diamonds for sale in jewelry. Thus, for our purpose of calculating the price of diamonds used in jewelry, it is necessary to take into account diamonds of quality close to jewelry, because they are actually used in jewelry.
After determining the number of diamonds used to produce the diamonds that will be installed in the jewelry, let's go back to the production of diamonds - the process of cutting and polishing diamonds. During cutting, some of the weight of the diamond is lost. Losses usually range from as little as 40% of the total weight (which means 60% yield) to as much as 70% (yield 30%). It depends not only on the shape of the diamond, but also on the shape of the diamond, which the diamond manufacturer decides to make - and there are usually several possible options.
Diamonds are divided into models - a form of diamonds. In the Sawables model, the yield is about 45-60%, the Makeables output is about 35-45%, and the lowest yield for models such as Flats and Chips is 15-35%.
Usually the diamond manufacturer tries to get the maximum revenue for the value of the diamond, so the total price of the diamond can determine what the diamond will be, which means that the exit indicator is given a lower priority. Manufacturers of diamonds believe that the average yield is about 40 percent.
Finally, the total value of diamonds produced by the global industry is about $ 19- $ 22 billion annually. In 2013, Chaim Even Zohar (Chaim Even Zohar) determined this figure of production at $ 21.6 billion.
CALCULATION OF THE AVERAGE PRICE
Having these figures, we can now calculate the world average value per carat based on the wholesale value of diamonds. If the annual world diamond production in 2013 amounted to a total of 130.5 million carats, and 55% of this volume was the volume of production of diamond jewelry, then the world's production of gem quality diamonds amounted to 71.8 million carats. Of course, not everything that is extracted from the bowels in a certain year is sold during this year, but most of this volume, and, ultimately, all this volume is sold, so the situation is leveled.
In fact, about 71.8 million carats of quality jewelery were shipped to the global diamond sector in the same year. With an average output of 40%, the volume of production of this product was 28.7 million carats of diamonds. This is the volume of the supply of diamonds, ready for use in all types of jewelry.
As stated above, this production is estimated at $ 21.6 billion. This is at wholesale prices before branding, retail margins or even intra-trade surcharges. Finally, dividing the cost of production by volume, we obtain an average price per carat of $ 752.
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