I'm not sure who you're explaining this to and why because it's largely orthogonal to what I said.
The cut gem's label price is based on an appraisal. The appraisal is based on the market rate (a real-world approximation of the theoretical "fair market value" you explained) of comparable gems.
Because based on both the mistranscribed video and the sample appraisal the appraisal seemed to be much lower than the asking price on the website, I assumed this might be because the appraisal is incomplete and doesn't take into account some factor that might be well-known in the industry to not warrant any mention in the video but still contribute significantly to the final price. Notably, just because the appraisal was specified as a dollar amount that does not eliminate the possibility it might refer to something other than a USD sale price.
Given that a lot of luxury goods and collector's items are auctioned off at vastly inflated prices (often as speculative investment or simply money laundering and complex tax write-off schemes), I would have found this surprising but not implausible. Another example would be insurance where "value" might either be the cost to replace something or the depreciated value of the same item, which can be a very different amount (again by orders of magnitude).
disagree. we're just exchanging thought-provoking ideas here, man. wasn't coming at you or thinking i hold some kind of edification authority over anyone here even in the slightest.
The cut gem's label price is based on an appraisal. The appraisal is based on the market rate (a real-world approximation of the theoretical "fair market value" you explained) of comparable gems.
Because based on both the mistranscribed video and the sample appraisal the appraisal seemed to be much lower than the asking price on the website, I assumed this might be because the appraisal is incomplete and doesn't take into account some factor that might be well-known in the industry to not warrant any mention in the video but still contribute significantly to the final price. Notably, just because the appraisal was specified as a dollar amount that does not eliminate the possibility it might refer to something other than a USD sale price.
Given that a lot of luxury goods and collector's items are auctioned off at vastly inflated prices (often as speculative investment or simply money laundering and complex tax write-off schemes), I would have found this surprising but not implausible. Another example would be insurance where "value" might either be the cost to replace something or the depreciated value of the same item, which can be a very different amount (again by orders of magnitude).