RAPAPORT... "It is no secret that the past two years have been difficult for the entire chain of our industry. Nevertheless, the past few months have produced several positive developments. For example, it is encouraging to note that there has been a modest return of confidence in our industry and reports of modest growth in the number of transactions,” reported Moshe Mosbacher, acting president of New York’s Diamond Dealers Club (DDC).
Though the industry has survived, Mosbacher, a diamond manufacturer for more than 25 years, recognized that survival is not enough. “We must collectively determine how we will return to a state in which we thrive,” he asserted.
The U.S., as the largest consumer market for diamonds, is the engine that will lead the entire diamond industry, according to Mosbacher. He pointed out that diamond and diamond jewelry sales amount to half of the revenues for the many thousands of jewelry stores throughout the U.S. “The New York market will serve a crucial role in achieving recovery since it serves as the gateway for diamonds coming into the U.S.,” he attested.
The concentration of players in New York makes the city especially well equipped to handle larger, more expensive diamonds, Mosbacher noted. “While the cost of cutting stones in this market is higher than some other venues, this matters less with the more valuable diamonds. Also, a manufacturer standing near a cutter can make quick decisions regarding such questions as to whether to decrease the size of a stone by eliminating an inclusion, a decision that can lead to improved clarity and value,” he said.
Many retailers prefer to make their purchases in New York, a fact that Mosbacher attributes to the competition among wholesalers, which results in better prices and a better selection of goods.“In short, New York is a buyer’s market,” he remarked.
Today’s New York diamond market is no longer limited to face-to-face exchanges, Mosbacher recognized. Many of the large diamonds for sale in New York are listed not only on websites such as the DDC website, www.nyddc.com, and RapNet, www.diamonds.net, but also on wholesalers’ individual websites. “It is reasonable to believe that all the larger wholesale diamond houses advertise and list their diamonds on the internet,” he observed.
Mosbacher urged cooperation among diamond industry stakeholders to spur progress during this challenging time. “To achieve economic recovery, it is necessary that all segments of our industry be united by the goal of safeguarding our business and our mutual livelihood. We must unite in our commitment to move ahead in the spirit of cooperation and not conflict, in the spirit of collaboration and not condemnation and in the spirit of coalition and not contention.”
Mosbacher stated that the need for the emotional satisfaction and sustainable value associated with diamonds will help bring about the restoration of growth and prosperity to the diamond industry. With a note of optimism, he declared, “47th Street is ready to work with you to achieve these objectives.”
Article from the Rapaport Magazine - October 2009. To subscribe click here.