Importance Of A Diamond Price Estimator – Olga Rosina Glitzkoin Diamond Expert
There is often some confusion about a diamond price list and a diamond price calculator or estimator. Buyers buying a diamond for personal use, generally rely on price lists published by various diamond sellers or jewelers. Seasoned diamond traders also review diamond prices, this helps them understand the best price to quote (seller) or pay (buyer) for a diamond with certain specifications.
A diamond price estimator or calculator differs from a price list, the estimator functions like a dynamic tool and is not based on a hardcopy of prices. A price list would be maintained by a specific jewelry or diamond seller, it is very likely to be biased in favor of the seller.
Diamond price estimators or calculators are ideally designed and implemented by, diamond trading platforms that are open to all sellers and buyers. These tools have complex algorithms that, calculate the price of a diamond based on specified ‘parameters’. We will come back to explain the term ‘parameters’ in a moment. In the process of price calculation, diamond price calculators draw supply and demand information from, all or at least most, international diamond trading centers.
So what are the essential ‘parameters’ that go to influence the price of a diamond. The often heard 4Cs of a diamond include color, carat (weight), cut and clarity. It is important to know that, these parameters have been standardized and accurately defined – they are understood well across the globe.
However it is not just the 4Cs that define the price of a specific diamond, market mechanisms also play a role. This is where the programming logic for the price calculator gets complicated, data has to often be run through multiple algorithms to deliver accurate results.
Talking about the accuracy of the price estimated for a diamond, it would be fair to say that a good estimator could deliver an accuracy of +/- 20%. This is the margin that would depend on the bargaining capacity of the prospective buyer and the, degree of interest that the seller has in making the sale.
The Glitzkoin project includes a diamond price estimator, advanced algorithms are used to calculate the price of a diamond. Referred to as the DPE, this estimator is open for everyone to use at no charge. There is no obligation for users of the Glitzkoin diamond price calculator, to trade on the platform.
Olga Rosina is a diamond veteran and has worked in the industry for over two decades. She is one of the diamond experts in the Glitzkoin team and is closely involved, in the development of the DiaEx, diamond trading platform and the DPE (Diamond Price Estimator).