When the International Gemological Institute (IGI) found
undisclosed synthetics in batches of melee stones submitted to its Mumbai and
Antwerp labs this spring, many in the industry thought that fears over
synthetics would have a wide-reaching effect on the U.S. wholesale market. But
what many didn’t know was that long before this spring, U.S. wholesalers had
precautions in place to protect themselves from undisclosed synthetics getting
into their inventory.
“We have not heard any concerns yet from our customers
regarding undisclosed synthetics in the market,” noted Ami Koret, vice
president at Davidoff Diamond Corp. in Houston, Texas. The reason, he
explained, is that, like most other wholesalers, the majority of his
merchandise is certified and comes from trusted suppliers. “About 95 percent of
the diamonds we sell are Gemological Institute of America (GIA) certified and
we get most of them already certified from our cutters. As long as people trust
in the ability of labs to identify synthetics, there is no reason for concern.”
Certifications are becoming more prevalent in the U.S.
diamond and jewelry market as an increasing number of retailers and consumers
demand assurances for their purchases. “We get them certified simply because
this is what the stores ask of us,” said Moshe Salem, president of sales at the
Los Angeles–based M.S. Diamonds and Jewelry.
“Most, if not all, of our stones are sold with certificates,
so we don’t really run into any issue with synthetics,” added Ian Levine,
president of bridal jewelry wholesaler Spectrum Diamond Corp. in Plano, Texas.
While the synthetics incident with the labs had little
effect on the U.S. wholesale market, the uneven and unpredictable sales
environment that marked August continued into September, leaving many
wholesalers with widely different experiences. “Sales over the past eight weeks
were on the slow side, but sales have been picking up since the final week of August
— it looks like we are headed in the right direction,” said Koret. Levine
observed a similar situation: “Sales over the past eight weeks have been steady
and currently we are seeing a positive increase.”
Other wholesalers, however, saw things a bit differently.
“Up to
mid-August, sales were fair, not amazing, yet fairly active, but
from
mid-August to now, there has been a decline,” observed Salem.
And then there are those who reported exceptional business.
“Sales are doing extremely well, in part due to larger sizes selling. It
seems like the affluent are spending money again,” said David Wiener, vice
president of Harry Kotlar & Co., a Los Angeles–based manufacturer of
platinum and diamond jewelry.
Many wholesalers are noticing that certain types of jewelry
are starting to pick up in demand. “Lower-weight fashion jewelry items have
been selling better as retailers are looking to hit $1,500 to $2,500 retail
price points,” observed Levine.
Fancy shapes are also strong sellers. “There have been many
orders for radiants, ovals and cushions,” noted Levine. Particularly, added
Koret, “fancy shapes are selling well in 1 carat to 3 carats — sizes that are
currently extremely difficult to replace.”
Because of the low supplies of fancies, “there is a
disparity in prices of rounds and fancy shapes,” said Koret, adding that prices
are stronger for all fancies. While prices on fancies remain high, round prices
have marginally softened. “Prices have come down slightly in the first few
weeks of September, but not significantly,” said Levine. In both rounds and
fancies, however, “desirable sizes — those up to 3 carats— have held their
fairly strong prices” said Salem.
For colored diamonds, “prices have been consistent, except
for pink diamonds — their prices are going up frequently,” observed Sumeet
Sethi, sales director at gemstone and diamond manufacturer Manak Jewels in
San
Francisco.
With the summer over, wholesalers are beginning to prepare
for
end-of-the-year sales. “Everybody is hoping for a good holiday season,
and
we are all getting ready for the end of the year. We think it should be good,”
predicted Sethi. This optimism is
pervasive in the industry. “I believe sales will pick up between now and the
holiday season, and as usual, the season will be good for companies that have
the right mix of inventory,” said Koret.
There is still some apprehension, however, that the November
election may negatively affect the economy going into the holiday season. “I
hope the elections will not be too much of a distraction for consumers and that
the Christmas season will be strong for our retail partners,” declared Levine.