Rough diamond valuation is inherently subjective because cutting skill varies.

Evidence

Diamond valuation is a subjective process. The value of a rough diamond depends on the value of the polished stones that can be manufactured from it. Since no two diamantaires will cut a stone the same way, the value added in the manufacturing process varies widely. Consequently, when dealers value a piece of rough differently, that difference, on which profitability turns, often reflects a real difference in the value of the polished stones they will be able to cut from it. — Lisa Bernestein, Opting out of the Legal System, 26

Categorization

  • XREF: connects to: Standardized diamond grading reduced skill barriers and boosted market competition.; Rough diamond valuation differences reflect genuine disagreements about manufacturable polish. — Lisa Bernestein, Opting out of the Legal System, 26