Diamond Retail Benchmark
Methodology
The Diamond Retail Benchmark is based on the following principles:
- Based on up-to-date market data
- Derived using an objective and transparent methodology
- Audited by a third party
- Supportive of the trade
- Accessible to consumers worldwide
- Governed by an inclusive board with representatives from all stakeholders - manufactures, wholesalers, retailers and consumer advocates
For each category of Cut (Shape), Carat, Color and Clarity, the DRB is determined by the following algorithm:
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| The algorithm analyzes all diamonds and its asking prices in each category, cleans-up outliers using a pre-determined statistical method and determines the high asking price for that category. | The algorithm applies a high-end retail markup. The markup multiple is highest for less expensive diamonds and goes down gradually for very expensive stones. | High-end asking prices at the wholesale level and high-end multiples ensure ample room for all business models. |
The integrity and strict application of the algorithm is audited by a third party auditing firm to ensure no human intervention.
Consumer Education and Drivers of Discount from DRB:
“Our Price” is always lower than “DRB”. Consumers will compare based on levels of discount off the DRB.
Note: High quality diamonds, carrying ancillary services, may be sold at a premium to the DRB.