Directions for use Rough Diamond Index
(1) All prices published in this index are based on the U.S. dollar.

(2) Prices are calculated on carat weight and rounded to the nearest $5.

(3) Rough size increments are referenced to established polished goods.

(4) For the purpose of round brilliants, only sawables and makeables are considered.

(5)The price index is not an offering to sell, but rather the authors opinion of both the international and national (cash)
asking price established  by the trade. No guarantees are made and no liabilities are assumed as to the  accuracy or
validity of the Michelsen Rough Diamond Index, and it should be used strictly as a guide only.

(6)Color is the closest estimate by an experienced grader that judgment allows. The diamond  may only reveal its true
color when polished. Color can also be affected by the original outer  skin of the rough crystal form as well as by
cutting skills.

(7)Clarity is the judgment of the amount of inclusions that may remain after the rough crystal form has been cut and
polished. Naturally, each set of  inclusions will differ depending on what shape the rough diamond  designer/plotter
intends.

(8) Diamond grades set out in the index are not established by the use of windows, polarascopes,
 immersionscopes, or any other grade assisting instrumentation.

(9) Prices may vary depending on the quantity, source, need to sell, and other criteria.



It stands to reason that a higher quality stone will fetch a greater price than one of a lower quality; therefore it must be
expected that if there is order in grading, then there will be so in pricing. Accurate and systematic grading of  rough
eliminates not only the guesswork but encourages fair trade practices, a  vital ingredient in good diamond management.

By purchasing rough diamond crystal  forms along the guidelines of the Michelsen Rough
Diamond  Index, the cutter can estimate the cost of the polished goods based  on a  recovery from sawable rough of
50 percent and 35 percent from makeables.  

This is designed to  coordinate with the  break points already established by the trade for polished goods. Greater
financial rewards are therefore obtainable to the cutter who can balance weight retention with correct proportions, as
each point retained on a 1 carat  D flawless diamond is worth $110.00 at the wholesale level.

Prices are calculated on sawables based on a  saw line in the middle of the octahedron, however should the stone be
appropriate for a 70/30% saw line, then an additional 20 percent can be paid for the rough.

In order to determine what a fashioned diamond could be sold for at the wholesale level,  the cutter would need to
subscribe to a diamond pricing guide, a number of which are already on the market. Alternatively, they may develop
their own, for such a self made list could be compiled by systematically recording transactions incorporating:

(1.) The cost of rough crystal forms.

(2.) Optimal weight retention.

(3.) Cutting cost of $1.00 per point.

(4.) Wholesale distribution margin.

(5.) Supply and demand.

(6.) Local economic conditions.

(7.) Position of the US dollar in relationship to international currency.
                                                          Definitions

Price:......................................................What is asked for it
Cost:.......................................................What is actually paid for it
Value:.....................................................What the item is actually worth
Retail Replacement:...........................Wholesale plus retail markup
Fair Market Value:..............................A legal term used by government agencies
which refers to a price at which a item would change hands between a willing
buyer and a willing seller - both with equal knowledge of the relevant facts
and neither under the compulsion to buy or sell.