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Profile: Oren Ben Mashiah & Shimon Ben Mashiah
Feb 23, 2014 5:18 AM
By Rapaport News
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RAPAPORT... Benma Diamonds Ltd. deals exclusively in rare, ethically-sourced fancy colored diamonds.
Names: Oren Ben Mashiah and Shimon Ben Mashiah
From: Israel
Company and Position: Benma Diamonds Ltd. – Owners
Rapaport News: What prompted you to pursue a career in the diamond industry?
Ben Mashiah: We grew up with diamonds because our father was in the industry. We would spend all of our spare time at his office. When he brought stones home, we would play at recognizing the diamonds and selling them to each other. We always knew that we would enter the industry, and it was just a matter of time before we went out and become diamond dealers ourselves.
Our father had a big office on 47th Street in New York and was known to the trade as Menachem Ben David. He dealt in colored gemstones and large diamonds. He always had a perfect eye for fancy colored stones and it drew him toward fancy colored diamonds. When he left New York and moved to Israel he dealt in fancy colored diamonds. We started in the industry soon after he left and opened Benma around 2001, at which point there were still not many people working with fancy colored diamonds. We always found it interesting to be involved in something a bit different than what everyone else was doing.
Rapaport News: Do you have a business philosophy that guides you in your work?
BM: Our guiding principle in fancy colors is to look for a nice make and concentrate on the color. The color has to be seen in natural light, as what you see is what you get. If it’s a nice make and color, it will sell.
We’re probably the only diamond dealers that don’t have a diamond light on our desk. We want to see the diamond in natural light since that’s how it will look on a woman’s finger. If the color’s there, you won’t have a problem selling it. If you like the stone yourself, your customer will like it too and it will sell.
Rapaport News: What have been the most notable changes in the diamond industry over the course of your careers?
BM: The crisis in 2008 changed the industry. People became afraid and didn’t want to invest in their inventory. They wanted to work off goods or take goods on memo in order to feel that they weren’t investing any money because they were afraid. Then there was a slight shift and people saw that there was a bit of money in fancy colors so they wanted to invest but they soon realized that it’s not so easy if you don’t know how to deal in fancy colors. They tried to delve into big stones as well but it didn’t work.
So people had to learn how to invest their money in a smart way.
The crisis made people more concerned about their money. Eventually it streamlined the industry and people landed up in their own fields doing what they knew how to do. Today, people are more knowledgeable about their goods. They learned how to build their businesses to ensure that another crisis like 2008 wouldn’t have the same effect.
Rapaport News: What differentiates Benma from other companies and what added value does the company bring to the market?
BM: Our knowledge of fancy colors differentiates us. We’ve been around for many years. We had a great teacher who taught us all he knew about color – how to look at and approach a stone, what color to look for and what makes it different from any other stone. We try and handle goods that are unlikely to be seen on the market and try to work with goods that nobody else has. If there’s a certain trend in the market, then we’re moving in a different direction. Sometimes it makes things difficult to sell because we may be dealing with things that nobody understands when they’re looking for more commercial goods. But we try to look for things that are rare and try to bring what’s nice to the market rather than what sells commercially. Our solid long-standing reputation gives peace of mind to our customers and allows us to steer away from the norm.
Rapaport News: What influenced you to focus on fancy colored diamonds?
BM: Besides the fact that our father was involved in the industry, we have found that there is a beauty in fancy colored diamonds that you don’t find in white stones. There are so many variations in fancy colors. You can find a pink with a touch of orange or a pink with a touch of brown, or even grey. A lot of factors combine to define whether the stone is fancy, intense or vivid pink when you look at the cut, depth and saturation of the stone. That’s why it’s so fascinating. Apart from the rarity of the stone, there’s so much beauty in each diamond.
Rapaport News: What notable trends have you witnessed in the colored diamond market in the past few years?
BM: We believe that fancy colors are a trend in themselves. Anything that’s different is a trend. When celebrities buy a large white stone, nobody speaks about it, but when Ben Affleck buys Jennifer Lopez a 5-carat, pink diamond, everyone hears about it because it’s different. The rarity of colored stones compared to white goods makes them trendy because there aren’t a lot of goods available.
Rapaport News: What factors are pushing the fancy colored diamond market that has resulted in sharp price increases in the past year?
BM: Since we’ve started in the business, fancy color diamond prices have always been on an uptrend because people always have an interest in color. Meanwhile, prices for white goods are volatile and go up and down. Pink, blue and yellow goods especially keep going up. Prices for fancy colored diamonds keep rising because of the rarity of the stones, but also because of demand, plus a great lack of rough which leads to an insufficient amount of polished. There’s only so much you can do with white goods, whereas color can bring out contrast in a piece of jewelry. There’s a lot of excitement in fancy colors because there’s greater contrast than is possible with white goods.
Rapaport News: Do you have a favorite diamond that you have bought?
BM: If we like a stone we put it aside. Someone once presented us with a stone that blew us away. Usually you don’t see such vibrant colors in a diamond and it inspired us. In diamonds you see a lot of colors but they are all different from each other, they don’t repeat themselves. The value is only going to go up for these goods and the only thing to worry about is that if we sell it, we’ll never see it again. If it’s a special stone that we love, it won’t go back on the market again. We love diamonds and people know that we tend to grow an emotional attachment to the diamonds that we trade.
Rapaport News: What is the toughest professional challenge that you have faced?
BM: Fancy colored diamonds cannot be treated in a direct, simple manner. It can be very frustrating that people approach the market so directly – if it’s this way it should have this price, etc. They don’t consider the color and the way the stone is cut. We want people to see the color for what it really is and ignore what’s on the paper or the inscription written by GIA, IGI, etc., on the stone.
Like it for what it is and not what the cert says. For this reason, there cannot be a price list for colored diamonds. Each yellow is different from the next and is priced accordingly. We’re trying to educate our clients to focus on what they see. You have to trust your eyes. If you like it, go for it.
Rapaport News: What are the biggest challenges facing colored diamond dealers in the current market environment?
BM: The only thing that bothers us is that people are afraid to move out of their comfort zone and they tend to buy what their friends have.
For some reason, the end costumer is afraid of colored diamonds. If all their friends have white stones, they will prefer a white stone as well. But you have to enjoy what you’re wearing. Don’t wear the stone just because your friend has the same one or because it sold strong at auction, wear it because you enjoy it, because it looks nice on your finger. People are afraid and we’re trying to educate them to know that they don’t have to be.
Rapaport News: What advice would you give to someone starting out in the diamond and jewelry sector?
BM: Be honest. We’re trying to educate people to buy fancy color diamonds. But if you’re not honest, people will lose their faith in you and your business. Be trustworthy, be subtle and focus on the beauty of the product. Always aim for the best.
Rapaport News: How do you envision your business 10 years from now?
BM: In 10 to 15 years, fancy colored diamonds will be even rarer than they are today. The mines don’t produce many of these goods and supply is decreasing. So there won’t be many fancy color diamonds available but we will be there to supply them.
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