GIA Cuts Prices 10% Amid Market Slowdown

RAPAPORT… The Gemological Institute of America (GIA) has temporarily
reduced grading fees for certain smaller diamonds after recording a drop in submissions
during the recent industry slump.



The organization is slashing prices of reports by 10% for
polished weighing from 0.30 to 0.49 carats until October 15, the GIA said in a
letter to clients last week, seen by Rapaport News.



“Right now, GIA is
issuing fewer laboratory reports than normal because the industry is
experiencing challenging times,” Tom Moses, the GIA’s executive vice president
and chief laboratory and research officer, wrote in the note.



“The reduction is
intended to stimulate submissions to deliver more grading reports, which
supports our consumer-protection mission,” a spokesperson for the GIA added in
a statement Monday.



The market for polished under 0.50 carats has dwindled this
year as supply has far exceeded demand, with the RapNet Diamond Index (RAPI™)
for 0.30-carat diamonds sliding 12% in the first half. The index for that
category was 21% lower on July 1 compared with a year earlier.



The GIA’s discount applies to natural and lab-grown diamonds
submitted for Diamond Grading Reports, Diamond Origin Reports, Diamond
Dossiers, Laboratory-Grown Diamond Reports, Focus Reports, Diamond eReports and
Colored Diamond Grading Reports, the spokesperson explained.

Image: Color grading at a GIA laboratory. (Eric Welch/GIA)