What is the Diamond Retail Benchmark (DRB) ?
Idex , One of the leading diamond trading platforms, has taken up to challenge to create a benchmark to bring price transparency to the diamond jewelry consumers.
The diamond category is one of the few retail sectors that up to now has not had a Retail Benchmark for consumers.
For consumers, many of them first-time diamond buyers, the purchase of a diamond may sometimes prove to be a confusing experience. As a luxury product that will accompany consumers through major life events and will be bought to celebrate those events, confidence is elementary.
Consumers should be able to buy a diamond with the confidence of knowing they paid a fair price. The DRB presents a retail price recommendation for a diamond based on each of the 4Cs – Cut, Carat, Color and Clarity.
The benchmark is based on the high-end of retail prices currently in the market place, therefore allowing enough room for all business models.
The DRB should be used as background information only. Actual prices are determined by the sellers. The Diamond Retail Benchmark (DRB) is derived from up-to-date market data using an objective and fully transparent methodology.
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:
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.
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: