Diamond Cutting and Polishing
Delivered February 22, 2020. Contributor: Jaqi K.
Goals
To provide an in depth overview of the diamond manufacturing process, from raw/uncut to polished stones, specifically focusing on: yields, wastage, average cost of the process, as well as pricing of the polished stones. The focus should be on brilliant round cut, cushion cut, and emerald cut diamonds of 10-20 carats and above.
Early Findings
Costs in Manufacturing Diamonds
- "The cutting and polishing step contributes the least to the cost of manufacturing."
- According to 2016 report published by Statista, India had the lowest cutting and polishing costs for diamonds at $30 per carat.
Pricing of Diamonds
- The pricing for polished diamonds is determined by shape (such as round or cushion), carat (weight), color, GIA cut grade, and fluorescence.
- "The price of a cushion cut diamond is typically significantly less than the cost of a round brilliant diamond," while "the emerald cut diamonds have lower price per carat than most shapes."
- As an illustration for comparison, "diamonds with a clarity grade of SI2 or better and a color grade of K or higher," and of 1 carat are priced as: round brilliant cut- $2,500 ($3,000) to $16,500; emerald cut- $1,600 ($1,750) to $10,500; and cushion cut -$1,600 ($2,000) to $9,500
Yields in the Diamond Cutting Process
- Only about 40% of a rough diamond is used when cutting a round diamond because an uncut/rough diamond is naturally cubic.
- "The least amount of weight is wasted when cutting a rough diamond into a polished emerald cut as compared to the other cuts."
Summary of Findings
- In the first hour of research we were able to determine that information on the diamond cutting and polishing process is available, specifically on pricing especially on 0-5 carats weights, yields and wastage, and some associated costs of manufacturing.
Proposed next steps:
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Based on our preliminary research, we recommend continued research to provide in depth detail on the manufacturing process of the three polished stones of interest. In particular we recommend: 1) an analysis of the brilliant round cut diamonds that are 10-20 carats and above specifically looking at yields, wastage, and average costs in the cutting and polishing process, as well as pricing of the polished stones; 2) an analysis of the cushion cut diamonds that are 10-20 carats and above specifically looking at yields, wastage, and average costs in the cutting and polishing process, as well as pricing of the polished stones; 3) an analysis of the emerald cut diamonds that are 10-20 carats and above specifically looking at yields, wastage, and average costs in the cutting and polishing process, as well as pricing of the polished stones.
We also recommend continued research to provide at least 3 trends in the diamond cutting and polishing process that are addressing increase of yields, reduction of wastage, and reduction of the average costs in the diamond manufacturing process. For each trend, we will provide details on what it is, why we chose it and 1-2 examples that show its prevalence.