[sc_fs_multi_faq headline-0=”h2″ question-0=”1. What is the Rapaport Diamond Report and why was it created?” answer-0=”The Rapaport Diamond Report, often called “The Rap,” is a wholesale price list first published in 1978 by Martin Rapaport. It was created to provide a standardized “New York Wholesale” price index, bringing transparency to a market that previously relied on personal relationships and inconsistent pricing.” image-0=”” headline-1=”h2″ question-1=”2. How did the “Rap” price change the business for small-town jewelers?” answer-1=”Before the report, pricing was a guessing game of “trust your partners.” The Report leveled the playing field by giving jewelers outside of major hubs (like New York) a benchmark to work from. This allowed them to negotiate with wholesalers more effectively, as everyone was finally working from the same data set.” image-1=”” headline-2=”h2″ question-2=”3. Is Martin Rapaport a diamond dealer or a jeweler?” answer-2=”Interestingly, no. Martin Rapaport rose to prominence as a journalist and publisher. While he has since expanded his empire into trading platforms and grading services, his initial “rock star” status in the industry came from publishing the newsletter, not from selling stones himself.” image-2=”” headline-3=”h2″ question-3=”4. Why does the wholesale community have a “love-hate” relationship with the report?” answer-3=”While the report brought stability, it also shifted power from jewelers to diamond dealers and tightened profit margins. Today, wholesalers often live in fear of the report because: Inventory Value: A sudden 5% drop in the “Rap” price can instantly wipe out tens of thousands of dollars in the perceived value of a dealer’s stock. Market Pressure: If a dealer ignores a price drop, buyers (who all track the report) will simply stop buying from them.” image-3=”” headline-4=”h2″ question-4=”5. Does the report “report” prices or “set” them?” answer-4=”This is a major point of contention. Officially, the Rapaport Group claims to report on current market prices in New York. However, many in the industry argue that because the entire world’s diamond trade reacts immediately to his changes, Martin Rapaport is effectively setting the prices for the global market.” image-4=”” count=”5″ html=”false” css_class=””]The Rapaport Diamond Report is one of the most universally used data set for jewellers at wholesale level.
Back in the 70s, the way the diamond business worked out here in fly-over country was that salesman, and yes, they were almost all men, would show up at a store to see what they needed for inventory.
They would buy what they thought they could sell, and they would sell what they had. Pricing was a combination of ‘trust your partners’ and ‘whatever you can get’. Then, in 1978, a magazine, a newsletter really, came out called the Rapaport Diamond Report. It was an immediate hit.
They claimed to list ‘New York Wholesale’ prices so everyone from Small-town Colorado to, well, New York, were working from a more-or-less level playing field. Sellers could charge what they wanted and discounts were and still are common, but everyone knew the ‘Rap’ price and that changed everything, especially for small-town jewelers.
This caused a great amount stress in the New York wholesale community while Mr. Rapaport became a rock star out in the field. He changed everything, and the rise of certificates, FedEx, memorandum, and the internet just cemented his dominance. Martin Rapaport became the king of the diamond trade just by using a magazine article. He wasn’t even a jeweler or really even a diamond dealer.
In the 46 years since then, the Rapaport Group now includes a giant trading platform, an auction house, testing and grading services and more, but the heart of it is still the Rapaport Diamond Report. He’s still the king. He still sets the prices for the whole world, but that’s the new problem. He says he reports prices, and maybe that’s what is happening in New York, but out here, he’s the benchmark. When he changes a price, either up or down, the industry immediately jumps.
Well, they go up faster than they go down but at least that’s the idea. The stabilization in the 70s made the margins drop but the industry adjusted to deal with it. 47th street was doing great. Power had transferred from jewelers to diamond dealers. Not so much now. The wholesale trade, which is who is holding the inventory these days, lives in fear of one guy who pretends to be a journalist.
For good reason. For someone holding a million dollars in inventory, which isn’t all that much in this business, a 5% drop in Rap, results in an immediate $50,000 inventory drop in client perceived value. Yes, it happens. It just happened last week. If you ignore him and just don’t change prices, your sales will drop in addition to that. Every wholesale buyer in the country knows what diamonds ‘should’ cost. To me that’s setting prices, not just reporting them.
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FAQ: Understanding the Rapaport Diamond Report
Here are five frequently asked questions based on the history and impact of the Rapaport Diamond Report:
1. What is the Rapaport Diamond Report and why was it created?
The Rapaport Diamond Report, often called “The Rap,” is a wholesale price list first published in 1978 by Martin Rapaport. It was created to provide a standardized “New York Wholesale” price index, bringing transparency to a market that previously relied on personal relationships and inconsistent pricing.
2. How did the “Rap” price change the business for small-town jewelers?
Before the report, pricing was a guessing game of “trust your partners.” The Report leveled the playing field by giving jewelers outside of major hubs (like New York) a benchmark to work from. This allowed them to negotiate with wholesalers more effectively, as everyone was finally working from the same data set.
3. Is Martin Rapaport a diamond dealer or a jeweler?
Interestingly, no. Martin Rapaport rose to prominence as a journalist and publisher. While he has since expanded his empire into trading platforms and grading services, his initial “rock star” status in the industry came from publishing the newsletter, not from selling stones himself.
4. Why does the wholesale community have a “love-hate” relationship with the report?
While the report brought stability, it also shifted power from jewelers to diamond dealers and tightened profit margins. Today, wholesalers often live in fear of the report because:
Inventory Value: A sudden 5% drop in the “Rap” price can instantly wipe out tens of thousands of dollars in the perceived value of a dealer’s stock.
Market Pressure: If a dealer ignores a price drop, buyers (who all track the report) will simply stop buying from them.
5. Does the report “report” prices or “set” them?
This is a major point of contention. Officially, the Rapaport Group claims to report on current market prices in New York. However, many in the industry argue that because the entire world’s diamond trade reacts immediately to his changes, Martin Rapaport is effectively setting the prices for the global market.