Published diamond prices are inflated list prices built to create buyer bargains.

Evidence

Unlike a closing quotation on a typical commodities exchange, the prices recorded in the Rapaport Diamond Report are not actual transaction prices. Rather, they are the Rapaport Corporation’s subjective calculation of the “high asking” price, generally 15-30 percent above the actual transaction price, for various sizes and grades of polished stones. One explanation for the markup is that it enables retailers to quote list prices to consumers who think they are getting a bargain when they buy below it. — Lisa Bernestein, Opting out of the Legal System, 30

Categorization

• CANDY: Great conversational fact: the ‘official’ diamond price is a fake high number deliberately set so customers feel clever paying less.
• SHARE: Send to anyone in jewelry or high-ticket retail — the psychology that a 15-30 percent fabricated anchor makes customers feel like winners.