With the third quarter coming to a close, wholesalers
continued to cite the strength of the US economy as the main reason for
improved sales.
“The year in general has been better for us, but our sales
over the last eight to 12 weeks have been very strong [compared with] 2016,”
said Jai Bhansali, vice president of sales at Diagem, a wholesaler based in
Chicago, Illinois. However, he added, “as profit goes, that’s another story.”
Oren Sofer, a partner at New York City manufacturer Beny
Sofer, Inc., said the standard fare was selling well. “The fancy, high-market
and ultra-designed items have been getting attention, but ultimately the core
basics — rounds and cushions in loose — and bridal, wedding bands, studs and
tennis bracelets in jewelry are the out-pacers for us,” he reported.
Very well-made cushion shapes, like the cushion brilliant,
sell consistently, joining ovals and emeralds among the better-moving shapes,
according to Bhansali.
“Princess is still very, very quiet. In the struggling world
of fancy shapes, where marquise and pears are very quiet, ovals are definitely
a bright spot,” said Sofer. However, he pointed out that ovals were “tough to
source, it’s tough to find nice ones, and when you do find them, they sell
immediately.”
As for size, said Bhansali, “larger sizes have been a mixed
bag, but we have received consistent calls for 1- to 2-carat stones and
smaller.” He’s had to work harder to replace “nice SIs,” he added, since people
looking for value prefer them to VS.
“In terms of clarity, it is very much H to I,” continued
Sofer, who reported seeing “more acceptance” in the J to K range over the
eight- to 12-week period. “The J to K range has helped sell larger stones as
well — 2-, 3-, 4- and even 5-caraters,” he added.
Bhansali acknowledged that he’d made cost and price
adjustments that had resulted in less profit. Sofer, meanwhile, identified the
current business climate as “the perfect storm.”
“We are faced with pressure from our product having been
commoditized to a certain level, especially with the internet,” Sofer
explained. “There is also pressure from synthetic diamonds coming into the
market. And since there is limited profit [in natural diamonds], there is less
incentive to own them, stock them or sell them.”
Additionally, “the over-arching comment on loose diamonds is
that certified is the name of the game, and the certification has to be
Gemological Institute of America (GIA),” he continued, describing the entrance
of synthetics as “creating a funk” in the industry. While he has not seen a
change in the quantity of synthetics in the market over the last six months,
there have “definitely” been more booths selling them at JCK, he said, noting
that “even mainstream players like Stuller offer synthetics.”
Though Bhansali has found that people do inquire about
lab-grown, he said he had yet to hear about one of his diamonds failing to sell
because of a client opting for a synthetic. He remained positive about the
holiday season, especially regarding companies that had invested in better
colors in fine-make SIs.
Sofer, for his part, was bolstered by the country’s rising GDP
and decreasing unemployment. He cautioned that these metrics should be viewed
objectively, regardless of political beliefs: “The stock market, which is
traditionally a very strong indicator for our business, is going through the
roof. People will have money to spend.”
Article from the Rapaport Magazine - September 2017. To subscribe click here.