In the U.S. market, most loose diamonds are sold for engagement rings, according to www.idexonline.com. Of the estimated 48 million diamond pieces that are part of diamond jewelry sold in the American market, less than one million (2 percent or so) are sold as loose diamonds; the balance are sold in diamond jewelry.
The typical mass market specialty jeweler sells about 32 loose diamonds a year, while the typical guild (upper-end) jeweler sells about 40 loose diamonds each year. These unit sales figures include loose diamonds sold for engagement rings as well as all other sales. However, even though these sales are reported as “loose diamonds”, they typically leave the jeweler’s store in some kind of mount – most often a ring. Thus, it is important to understand that most American jewelers do not sell “loose diamonds” in the same sense that loose diamonds are traded in the global diamond exchanges.
We can measure price changes and volatility based on key base data for diamond engagement rings, as follows:
- The average ticket for a diamond engagement ring at guild jewelers (such as AGS jewelers) and online jewelers (such as Blue Nile) is $5,500 to $6,000.
- The average ticket for a diamond engagement ring at an independent specialty jeweler is about $4,500.
- The average ticket for a diamond engagement ring at a chain jeweler is about $2,500.
- The average ticket for all diamond engagement rings is about $3,100.
- The average size of the diamond in an engagement ring is 0.75 to 1.00 carats, with few as large as 1.50 carats. Of course, there are a very limited number of diamond engagement rings with larger (and smaller diamonds). However, the caratage range shown is typical for most specialty jewelers and a few better-end mass merchants.
- Roughly 15% of the diamond engagement ring’s retail average ticket (see various average tickets above) represents the cost of the mount. Thus, only about 85% of the retail cost of a diamond engagement ring is represented by the diamond. For example, the average ticket for a Blue Nile engagement ring – $6,000 – consists of the diamond at $5,100-5,200, with an addition $800-900 for the mount.
Based on all of this data, it is easy to see that most diamond engagement rings are F to I color, VVS2 to I1 in clarity, and 0.75 to 1.00 (or perhaps a few as large as 1.50) in carat size. About half of all diamonds in engagement rings are round; the balance is various fancy cuts.
An analysis of retail price data for diamonds with these characteristics as of February 1, 2010, shows that the retail prices are relatively more stable than for diamonds outside of this range. Consumers can get their best deals right now on diamonds; later this year, prices will be higher.
