Why is the bigger the diamond the harder it is to price?

One of the events that shocked the world in 2015 was the miners of the Lucara Diamond company in Botswana found the world's largest diamond (1,111-cara) in the last 100 years. Finding was hard, but valuing it was no less complicated.

As a company specializing in gem mining, only a few of the new billionaires dare to "buy money" to buy, Gem Diamonds has many times fallen into a dilemma when discovering precious diamonds.

Because of the valuation of rare and large stones, Brandon de Bruin, Gem Diamonds Sales Manager, is a very complicated job.

Valuation of rare and large-sized stones is an extremely complicated job.

Of the hundreds of millions of diamonds found from the ground over the past decade, only a few can reach 250 carats. The largest 1,111-carat diamond in the world in the past 100 years by Lucara is a rare exception.

Although the final price has not been given yet, according to calculations by many experts, its value can be up to 60 million dollars.

So where is such a difficult valuation?

Tradition of the market

Normally, mining companies will sell the gems they exploit directly to other firms. These firms cut them into smaller pellets, polished them and sold them to merchants and jewelers.

The diamonds they used to sell are all smaller in size. A diamond of a unique size that has been discovered like this is a big challenge for both operators.

Because they did not normally hire their own cutting workers and did not know how much it would take to turn them into polished diamonds.

Mining companies will sell the gems they exploit directly to other firms.

Special items

According to Brandon de Bruin of Gem Company, the processed pellets can sell 25% more than the raw pellets that the company used to sell to other manufacturing companies.

Although I have tried to cut and polish some of my exploited gems, I can analyze the process of converting gray colored gems in raw form into perfect jewelry but Gem Diamonds does not want to open. Expand this activity further.

The reason is that operators will easily sell and consume faster when the gems are in raw form . The concrete proof is that many diamonds are perfectly crafted after a few years, but it may take several years to find buyers at a reasonable price.

Gem Diamonds said that within the third quarter of the year, the company quickly sold 13 rough gems extracted from Letseng mine, each worth up to $ 1 million.

Big sized gems

"Before Gem came into operation, the world had never heard of such great gems," said William Lamb, managing director of Lucara in Vancouver. "It is Gem who paved the way for us to create a huge gem market."

As a special item, diamonds are not sold on the exchange and buying and selling them on the market is not as easy as other products.

Diamonds are not sold on the exchange and buying and selling them on the market is not easy.

Since the largest diamond (3,106-cara) was found in South Africa in 1905, there have been dozens of other large diamonds discovered in the last decade, and especially since Lucara officially opened in Botswana in 2012.
Thus, the introduction of analysis and pricing for this "underground masterpiece" will also help establish a certain valuation benchmark for later findings.

Diamond prices in the market declined

In recent years, demand for diamonds in the world market has shown signs of slowing down. Partly due to the recession of the world's second largest economy - China, the market consumes 16% of global diamond demand.

Even the price of raw gems has dropped about 18% this year, to the lowest level since 2010.

With too much risk for a market where consumer demand has not only increased but also plummeted as it is now, it is certainly a challenge not to price a most luxurious item like this. small.