It stands to reason that a higher quality stone will fetch a greater price than one of a lower quality; therefore it must be expected that if there is order in grading, then there will be so in pricing. Accurate and systematic grading of rough eliminates not only the guesswork but encourages fair trade practices, a vital ingredient in good diamond management.
By purchasing rough diamond crystal forms along the guidelines of the Rough Diamond Index, the cutter can estimate the cost of the polished goods based on a recovery from the rough of 50 percent from sawable stones and 35 percent from makeable stones. This is designed to coordinate with the price from break points already established by the trade for polished goods. Greater financial rewards are therefore obtainable to the cutter who can balance weight retention with correct proportions,as each point retained on a 1 carat D flawless diamond is worth $226.50 at the wholesale level. Prices are calculated on sawables based on a saw line in the middle of the octahedron, however should the stone be appropriate for a 70/30% sawline, then an additional 20 percent can be paid for the rough.
If the rough diamond buyer can't see the value of the finished polished stone then he/she is in trouble right from the start.