Rap list up again.....temporary blip, or the new reality?

[Garry H (Cut Nut)]

For sure, there’s that. But supply and demand can’t be ignored. In December Signet bought pretty much all the LG 1/4 ct rounds. At that point, the people who still had some left raised the asking price.
To me, that’s different than raising large stones based on increases on the Rap Sheet.
But even there…. I was searching for a 5ct LG emerald and so much of what I was seeing was sub par. Because of long standing relationships, the grower maintained the price for us- but I could understand raising it based on demand, and quality.

A very temporary factor totally overlooking the false basis of the entire pyramid dear Bernie and Michael

 

[prs]

If people can make good money at the current LGD price and obtain a good ROI, then more factories will be built, supply will increase, and the change in the supply/demand imbalance will lower prices.

In the last year or so LGDs have become much more accepted and popular, we can see that right here on PS. It's therefore likely we have an increased demand with insufficient supply to meet that demand. This will probably be temporary until more factories are built. At some point, assuming a free market, LGD prices will settle out at the level appropriate to the real production cost.

 

[oncrutchesrightnow]

To me, that’s different than raising large stones based on increases on the Rap Sheet.

This was pretty much my point. I agree that if LGD were the only diamonds around, they should not be priced by size until the size exceeds whatever the typical LGD rough yields.