The introduction of a transaction-based polished diamond price list is possible. The Mercury Diamond™ Price List which Ehud founded, provides wholesale polished diamond prices based on transaction prices in the wholesale market.
"In doing so, I aimed to highlight the potential benefits to the diamond industry that using price lists backed by actual diamond transactions can have. This is because these lists, such as that produced by Mercury Diamond, provide, in my opinion, a better reflection of market prices than benchmark lists, which are based on asking prices."
The key components of the price list are:
Upon receipt of the certificate of a diamond, a person wants to know its wholesale price. Mercury Diamond™ automatically retrieves all its information, including the 4Cs and irregularities.
Once this information is retrieved, the MPC™:
Several factors ensure that the Mercury Diamond Price List™ can operate with precision:
First, it is based on real transaction prices and other hard market data. It thereby avoids the possible disconnect that can occur between asking prices and other information supplied by diamond players, and the actual prices at which diamonds are traded.
Second, the Mercury Diamond™ proprietary table of discounts and premiums for irregularities means that when it collects transaction data for individual stones, it can factor in the impact of irregularities and net it off the price of a top stone shown on the Mercury Diamond Price List.
Third, it can complement any lack of market data through a proprietary process of association, based on the established industry principle that price changes of certain diamonds are closely linked to price changes of similar stones.
The Mercury Diamond Price List™ is fully independent and has been validated by one of the Big Four accounting firms, which is the pricing system for both rough and polished diamonds from which this list is derived and currently has a patent pending in the United States.