Wayne D. Prentice, a graduate gemologist and former GIA resident gemology instructor, has deep roots in the diamond industry. He's been involved in it in various ways since the 1980s, and most recently developed the DiamondMaster app, which he describes as a "global wholesale price list based on reliable market data."
To find out more about the app and how it can help investors, Diamond Investing News (DIN) sat down and spoke to Prentice. Here's what he had to say. DIN: What inspired you to make the DiamondMaster app? WP: What motivated me to make this app was being involved in the diamond industry, especially post-9/11. At that time, I started to see major shifts in diamond values and trading in the different markets, and a lot of that was stimulated from changes in US policy. From about 2002 to 2007, a five-year period, the US dollar — because of all the spending internationally post 9/11 and the easing on credit — lost close to 48 percent to the euro. So in my mind, pricing diamonds to the dollar did not seem the best strategy, especially given that they're an international product. That's when I debuted the Troy Diamond Report, which was the first diamond pricing guide I did — it was in PDF format. DIN: How did that guide work? WP: I wanted people to have a solid benchmark to use as a reference for per-diamond global value, so I ended up using gold's annual moving average and the International Monetary Fund's Special Drawing Rights valuation for diamond wholesale values traded on the industry's exchanges and from cutting factories. Those two benchmarks are references people follow, so users were able to determine whether diamonds were losing value, gaining value or if the currency was just changing in value. I ultimately added major foreign currencies, which give a lot more depth for understanding the market.