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U.S. Wholesale
By Shuan Sim
Business has picked up for many diamond sellers, breaking the slow spot often seen earlier in 2016. “There has been less consistency this year but year-to-date, business has been up significantly,” said Jai Bhansali, vice president of sales at Diagem, a wholesaler and manufacturer in Chicago, Illinois. While he comments that buyers generally seem to be moving toward lower-quality goods and squeezing margins, the volume of goods sold makes up for it. The strong turnout at the Hong Kong Jewellery & Gem Fair in September seemed to have bolstered the moods of wholesalers in the U.S., as it signaled that buying has not completely died off. “With the good Hong Kong show and Diwali around the corner, prices are firming up, which is good for us,” pointed out Amish Mehta, president of Amipi Inc., a wholesaler in New York City. While retailers have been largely reluctant about restocking this year, it might not be all bad news. “People have not been stocking a lot so far, so some last-minute buying might be possible as we get closer to the holidays,” said Andrew Slesinger, owner of Rough Diamond World, based in New York City.
The steady sales in recent months have also been matched by a general lack of price resistance. Wholesalers report little to no inventory trouble, though restocking better-quality goods has become trickier. “If you want to buy nicer goods, you have to pay more for it these days,” said Jay Moskovitz, vice president of Robert Moskovitz Co., a wholesaler in New York City. There also seemed to be some shortages in finding diamonds in higher clarities when needed, according to Bhansali. “People are putting a premium on nice colors and nice cut. It’s making higher-value goods harder to sell,” he said. As a whole, buyers seemed to have been moving toward smaller stones, and while bigger diamond sales have slowed, that is not to say big stones are not moving at all. “All sizes move if you have the right goods,” Slesinger commented. He noticed that buyers who are buying better-clarity diamonds are also buying better-color stones at the same time. “It seems like the better the quality, the whiter it has to be,” Slesinger said.
Many diamantaires expect anywhere from status quo to a steady climb in the months leading up to the holiday selling season. “We’re up for 2016,” remarked Mehta. “Business has been better year on year and I’m expecting more jewelry to sell over the next three months,” he added. Bhansali maintains his optimism that the diamond industry will remain robust this holiday season, as long as buyers play their cards right. “There is not going to be a speculation market. As long as people don’t overextend themselves, they won’t end up with goods they’re unable to sell,” he elaborated. Some, however, prefer to tread cautiously. Slesinger feels that the diamond industry has been steeped in slumping conditions for so long, it’s hard to see light at the end of the tunnel. “I’m aware of the current climate and everyone’s cautious about buying right now,” he said. However, it’s not all doom and gloom for Slesinger. “If demand is normal, this holiday should turn out okay,” he said. Moskovitz shares that opinion. “It’s hard to say but I do hope this holiday season will be a good one. There really hasn’t been a strong holiday season over the past couple of years. I’ll be happy if things carry on the way they are now,” he concluded.Article from the Rapaport Magazine - October 2016. To subscribe click here.
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