Standardized diamond grading reduced skill barriers and boosted market competition.

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 (#complicates, via linked claim)

Categorization

• XREF: connects to: Rough diamond valuation is inherently subjective because cutting skill varies. — Lisa Bernestein, Opting out of the Legal System, 26; Standardized grading certificates lowered barriers to entry and increased competition. — Lisa Bernestein, Opting out of the Legal System, 28

Related

• Standardized grading certificates lowered barriers to entry and increased competition. (similarity 0.91)
• Rough diamond valuation is inherently subjective because cutting skill varies. (similarity 0.91)
• Rough diamond valuation differences reflect genuine disagreements about manufacturable polish. (similarity 0.86)

Broader Connections

• Rough diamond valuation is inherently subjective because cutting skill varies. #complicates (0.75) — Lisa Bernestein, Opting out of the Legal System, 26