In coloured-stone wholesaling, lot allocation is the negotiated division of a parcel between two or more dealers who have agreed to buy together. The seller may insist that a parcel move as a whole, while individual buyers want only the better goods or only a particular size range. Allocation resolves the impasse: the buyers agree among themselves who takes which stones, settle a private price for each share, and pay the seller the full parcel price between them.

Mechanics

Allocations are usually made by lay-out, not by random draw. The buyers spread the parcel, agree on logical sub-parcels by colour, clarity, or size, and assign values to each sub-parcel through open negotiation. The most senior or most experienced dealer often arbitrates. Allocations rely on trust; once goods are split, the seller's invoice is satisfied and any dispute over share quality is between the co-buyers.

Why it matters

Allocation lets the trade clear large parcels that no single buyer could absorb, and lets specialist dealers acquire only the material that fits their book. It is most common with rough sapphire, ruby, emerald, and tourmaline parcels coming out of Bangkok, Jaipur, and Bogotá, where parcel structure is the norm rather than single-stone selling.