Sales rose in mid-summer, even considering that many in the
industry kept to the vacation tradition of closing for the first two weeks in
July.
“We’ve been busy,” said Nilesh Sheth, president of New York
City wholesaler Nice Diamonds, which remained open during that period. In fact,
Ami Koret, president of Davidoff Heritage Diamonds — a wholesaler based in
Houston, Texas — cited a “substantial” turnaround since the JCK shows, although
he maintained that the timing was only coincidental. Still, he said, up until
the June shows, business was “probably down” compared to the same time in 2016.
“Everything picked up,” Koret continued, pointing to sales
of G to J, SI diamonds, which are his mainstay, but also to fancy lights and
yellows in the Y to Z range. Sheth, describing his company as the “Amazon” of
diamonds for its extensive selection of colorless and fancy color diamonds,
identified 0.5- to 1.5-carat white stones in G to H colors and V2 to I1
clarities — the mainstream of the US market — as strong sellers.
“Prices have been holding steady,” said Sheth. “We haven’t
seen a big change up or down either way in sourcing and in sales. And that’s
good. We want stability; when there’s stability, there’s more demand.”
Koret concurred that prices had been steady for “quite a few
months.” However, he noted that it had been difficult to find white, SI stones
in “nice goods.” The SIs, he added, are “pretty weak,” which he attributed to
the fact that those diamonds, mostly manufactured in India, have black
inclusions. “Actually,” he went on, “even VS [stones] these days have black
inclusions.”
Sheth said there were “plenty of goods on the market,” but
advised patience when sourcing a specific size or category. In response to a
demand for more unique goods, he is focusing on rose cuts and old Euros.
“There is too much competition for colorless, certified
goods, especially from online sellers,” he said. “There is very little mark-up
on these [rose- and old European-cut] stones, but the consumer doesn’t balk at
paying more for something ‘unusual.’”
The local and national economies continue to influence business.
While Houston is more diversified than in the past, said Koret, its fortunes
are still dependent on the oil industry, which remains in a slump. The impact
of people losing their jobs reverberates in the consumer marketplace. Sheth,
meanwhile, believes the US administration’s promised tax cuts and lowered
estate taxes will “bring in much more money for the affluent and generate more
business.” He expressed hope those bills would pass, but one way or another, he
was confident about sales because of the country’s strong economy, especially
compared to the rest of the world.
“I see only positive going forward,” he said, predicting
good business in the third and fourth quarters of this year, even into the
first quarter of 2018.
Koret echoed that sentiment. “I’m an optimist by nature, so
I always expect a good season,” he said, adding that with his 40-plus years of
experience, “I’ve been proven right most of the time.”
Article from the Rapaport Magazine - August 2017. To subscribe click here.