Wholesalers reported strong sales, voicing satisfaction with
the pace set in March, as figures increased across the board from
bread-and-butter to larger stones.
“We’re seeing lots of big stones — 3 to 7 carats — moving,”
said Andrew Rickard, vice president of operations at RDI Diamonds in Rochester,
New York.
Eric Mor, president of New York City wholesaler Abe Mor
Diamond Cutters, concurred. “Sales of 3-carat-plus have been a continuing
strength — definitely more than usual,” he commented.
The strength of the market extended to natural colored
diamonds. “The market for colored diamonds has been particularly active —
especially for pink, in the high end as well as entry level,” noted Audrey
Pancis of Pancis Gems, a wholesaler in Morristown, New Jersey, specializing in
natural colored diamonds.
Pancis pointed out that natural colored diamonds were
popular for accent and side stones, as an alternative to colored gemstones and
white diamonds.
Strength in numbers
“Prices are actually pretty strong — more than steady — and
they are getting stronger,” reported Ami Sarbagil of E.M Trading, a diamond
manufacturer in Chicago, Illinois. “It is very hard to get the goods for the
price you got them for before Christmas. Price is always an issue, but if you
don’t have the goods, you can’t sell.”
While wholesalers cited a strong economy as one factor
contributing to positive sales, they also identified trends — in the global
market and in the domestic retail environment — that continued to impact their
buying ability and their bottom line.
Sarbagil commented that more diamond wholesalers in the US
needed to recognize that the diamond market was global. “Even if the American
market is somewhat slow, the market in Asia Pacific may be pretty strong. And
if there is demand, the price goes up. I think part of the industry still sees
things from too narrow a viewpoint,” he pointed out.
Moving with the times
Even though business is trending up, Mor has noticed a
turning point in the retail market. “A lot of the independents that were
marginal or weak have disappeared, but the ones who have adapted to the new
retail world are doing well,” he said.
Selling online to a younger customer base is a key component
of that new retail reality, but it means jewelers have to focus more on educating
customers. “Jewelers need to be experts to compete with online selling,”
continued Mor. “They have to be able to dissect a Gemological Institute of
America (GIA) report and explain the difference in diamond prices. Is the 10%
difference due to graining, or is there a black center inclusion? Jewelers need
to communicate very persuasively and do it right.”
Pancis has taken a proactive approach, helping retailers
develop an online training program that sales associates can access easily.
“Everybody loves color, but associates are not that knowledgeable. People sell
what they like and what they’ve achieved a comfort level in explaining.”
The impact of taxes
Current economic issues are also a concern for wholesalers.
Preferring to steer clear of any political pros and cons, Sarbagil predicted
that the current law lowering business taxes and the recent action lowering
tariffs would have a positive effect. “The fact that tariffs will be applied to
aluminum and steel will spur local production, and in turn, people will find
work, earn more and spend more,” he said. However, he described legislation
that would introduce online sales tax to match the tax on retail purchases as
“going nowhere.”
“It is not a fair playing field for retailers,
because at the end of the day, we’re selling an idea — and you need a person to
do that. Only in brick and mortar can you have a true buying experience.”
Article from the Rapaport Magazine - April 2018. To subscribe click here.