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Why Is There A $10K Price Difference In The Same Spec Diamonds


jyeh74
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Why is there a $10,000 price difference between these two. Both are 2.5+ carat round brilliant, F color, GIA XXX, no flourescence

http://www.bluenile.com/diamond-search?track=head#diamonds_pid=LD02624545

http://www.bluenile.com/diamond-search?track=head#diamonds_pid=LD02119549

 

I learned that the first one, that is $33k is in India. Are India diamonds inferior quality? Its the same GIA that grades them, so I don't understand.

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The diamond is likely to be in India because it's been cut there - India is now the largest cutting country on a global level, and diamonds generally are not sensitive to geographic origin (unless it's been used as a marketing position to extract a premium: Argyle pinks, Canadian diamonds). I can think of two reasons for the difference in price:

 

1. The inclusions in the cheaper stone are easily visible, whereas the other one looks very clean.

 

2. The cut is "better" (meaning more commercially popular - you may well like the other one more) in the more expensive stone.

 

If I am right, the first effect is the dominant one - say 70% of the price difference you are seeing.

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That's an interesting comparison. For the most part, the stones you see advertised on Blue Nile aren't actually owned by them but rather by a third party who is doing a virtual consignment with them. This is actually pretty common in the online diamond and even storefront jewelry business. The price is set by whoever actually has the stone and the seller is adding a markup. They don't much care WHAT it costs. The guys in India wants less for theirs. As you've observed we don't know why and it may have nothing whatever to do with diamonds but I suspect Davide is right that it's about what's 'eye visible' or some other real or percieved grading problem and that they have therefore had a difficult time selling the stone as a result.

 

The GIA they're talking about is the same. With Blue Nile as the front line seller, I wouldn't be all that worried about the current location. If you buy it, they'll ship it to someone in the US who will check it and then ship it to you. As long as overnight delivery isn't one of your issues, that shouldn't be a problem.

Edited by denverappraiser
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