RAPAPORT... As Israeli vendors returned from the Hong Kong International Jewellery Show, they voiced mixed reviews about the show’s success, as well as the general market pace for fancy shapes. Whether or not diamantaires think the fancy market is on the upswing seems to depend on what kind of fancies they are selling and to which part of the world they are selling them.
For the most part, the verdict is clear: Princess, radiant and emerald cuts are still at the top of their game with the less sharp-edged marquise, pear and oval cuts posting the poorest results. The Asian markets are more receptive to the heart-shaped softer cuts than the U.S. markets. Eli Kaufman, chief executive officer (CEO) of E.F.D, specialists in princess cuts, reported a “nice” demand, however, for 3-carat-and-up princess stones in Hong Kong.
“Large stones did quite well, although there was definitely a lack of customers from Mainland China,” he said.
As a sightholder, E.F.D. can better meet the ongoing demand for larger stones, while manufacturers of smaller fancy shapes in Israel are following the long-time movement to niche expertise to stay competitive. In line with the overall industry trend, Israelis have developed high-end expertise in the cutting and polishing of high-color and high-clarity fancies, leaving the mass production of smaller stones to India.
Diversification
With diamantaires complaining about the short supply of rough diamonds suitable for cutting fancies, manufacturers are testing different strategies to stay competitive in the fancy market. Some manufacturers are designing new shapes in an effort to maximize the rough yield on every diamond and diversify their offerings to consumers. Others are developing and branding special cuts, in the hopes that the high-quality and unique design will sell to customers.
Avraham Bernat, president of Avnit and the godfather of fancy design, is doing both. Bernat, who has always been ahead of the fancy market curve, has played around with some 30 different shapes in the past year. “We used to have a narrower range of fancies, but now that we don’t want to lose the yield on the rough, we are selling more types of fancies.”
On the other hand, Daniel Steinberg, manager with the Avi Paz group, which specializes in straight-edged fancies, dismissed the impact that the development of new cuts would have on the market. “The market has been exaggerated with new cuts. You will see lots of different cuts, but if you want to buy one kind of stone, it won’t be available,” he said. “I can guarantee that out of 30 cuts, 20 are not out on the market.”
For that reason, companies like Avnit and Yuval Harary Diamonds are also putting a lot of effort and money into marketing a specific cut or line. Avnit is strongly pushing its new “Euphora” cut, which Bernat claims has been specified to produce maximum fire. The design’s numerous step-cut facets mean less yield from each rough, but Bernat is confident that the design is exceptional enough to appeal to customers.
Harary, who is marketing his Fourever Concept, also noted that many vendors will package new fancy shape designs with rounds into a piece of jewelry as a means of unloading merchandise that wouldn’t necessarily sell individually.
“Even though there isn’t a big demand for smaller fancies, a well-cut stone or matched stones of a particular design will do well,” said Abe Hazan, president of Trapz, a manufacturer and exporter of numerous fancy shapes.
Fashion TrendsSome highly unique fancy cuts, however, have taken off, only to fall out of style just a few years later. After riding a wave of popularity, the Star cut seems to have fallen out of fashion this year, with most vendors reporting unsold stock of the unusual cut — the exception being one Israeli vendor specializing only in Star cuts who has maintained a clientele in Japan.
“We still feel that there is good market demand for invisible-setting jewelry,” said Ezra Boaron, CEO of Rising Star, which is supplying the Japan order. Boaron is still planning to patent some of his new designs, including certain flowers and leaves, even though he believes the market for the classic fancy shapes has been slow this year.
Other wholesalers are not as optimistic about the future of these fashion-based shapes. “I think the Star is pretty much over. It’s a fashion item and fashion changes,” Steinberg said.
The Marketplace• Princesses and emeralds are in good demand in small sizes from 0.10 to
0.70 points.
• Demand is fair for 1 carat+ pears and ovals, but pears, ovals and marquises are weak below 0.75 carats.
• SI rounds with lower-quality H-K color have soft demand.
• There is fair demand for oversize
diamonds 1.25 carats and up.
• Fancy colors, particularly small goods between 0.10 and 0.50, are in demand for the upcoming show in Basel.
Article from the Rapaport Magazine - April 2007. To subscribe click here.