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.