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Since the amount of rough diamonds is controlled, the proportion allotted at certain periods of the year to various cutters may be insufficient to keep their workmen fully employed. It is then that good quality “old cut” stones rise in price, for these are bought and re-cut in the modern style. The loss in weight which this operation entails requires some skill to estimate, but generally a stone of over one carat in weight which is white and free from flaws is worth re-cutting. A comparatively small table and bad proportions according to the modern standard often characterize these old stones.

Fully cut small stones have been fairly scarce for some years, and sizes of about forty to the carat have realized a high price,
reaching about $168 (£60) a carat if fine. Stones of about ten to the carat realize up to $182 (£65) a carat. The fashioning of these small stones requires a great amount of skill and patience, and almost all are produced on the European Continent. But prices of diamonds fluctuate almost daily, and one has to be in close contact with the market to follow its trend. The prospects of war or peace have a great effect on the price of diamonds, as has also the buying value of the pound sterling. When conditions look uncertain, there is always a demand for large, fine stones.

The value of industrial diamonds has also risen enormously. During 1942, the value was double that of 1941. Boart, which was about 3/6 or 50 cents a carat prior to 1939, reached about 13/6 or $1.70 a carat during the war years. In 1951, it reached $8.40 (£3) a carat, chiefly owing to the demand for this important material by the U.S.A. and the U.S.S.R.

The dealing in pearls is normally an entirely separate business from that of other gem stones, and for many years there “were a certain number of merchants, comparatively few, who used to handle almost the whole of the annual output of the Persian Gulf. But restricted production and sale since about the year 1925 have obliged most of these pearl dealers to handle other gems as well. The introduction of the cultured pearl had a temporarily depressing effect on the values of natural pearls, but here again, the realization by the public that the two kinds could be distinguished, generally without difficulty and always with certainty, led to a gradual recovery in prices. Moreover, the disappearance of the cultured pearl from almost all markets when Japan entered the war in 1941 led to a greater demand for the natural gem, the price of which has consequently risen once more. It still, however, falls far below that which was obtained during the boom years of about 1920, despite the comparatively small world’s pearl fishery.

The price of pearls is based on a unique method, and one that is not used with any other gem stone. Its origin is no doubt Eastern, but it is used by all pearl merchants in every part of the world, except when very small pearls are being considered. The pearl is first weighed in grains, and this weight is squared. The resultant figure, called the base, or one shilling base, is regarded as shillings. The base value of the pearl or pearls is then judged according to current market values, and the shilling base is then multiplied by this estimated base value and translated into dollars when needed.

For instance, a five grain pearl valued at 20/- (about $2.80) base is worth a total sum of $70 (£25). A ten grain pearl valued at this same base would be worth considerably more than twice the value of a five grain pearl, in fact, $280 (£100). Prices of pearls in the trade are always referred to by base, except seed pearls or very small pearls, and poor quality misshapen (baroque) pearls, which are priced by the carat.