An important facet of the US diamond market is that larger
3-carat-plus diamonds are attracting a wider audience, for both white and
colored diamonds. In the latter category, yellow diamonds are the sales
leaders.
“There is definitely more activity in larger stones over the
last three months,” explained David Wiener, president of Los Angeles-based
manufacturer Harry Kotlar & Co. He cited strong sales of white diamonds in
the 3- to 10-carat range in VS to SI2 clarity.
Sumeet Sethi, director of diamonds at Manak Jewels — a
wholesaler in San Francisco, California, that specializes in rose cuts and old
mine cuts — took a more circumspect view. While the summer was a “little slow,”
he noted, “calls for the 3- to 10-carat range are easily converted into sales
[of those sizes] in SI clarity and better.” In addition, both he and Wiener
pointed to the increasing popularity of yellow diamonds.
“Color diamonds may be a niche-related segment of the
industry, but interest is growing, especially in large yellow diamonds,” said
Bruno Scarselli, managing partner at Scarselli Diamonds. He attributed this to
people having “discovered” this color, as well as having recognized the stones’
value. Scarselli also pointed to a direct correlation between retail sales of
tutti frutti jewelry and demand for yellow diamonds. “In the US, size
overshadows any other factor; the marketplace revolves around bigger stones
relative to lighter color,” he added. “The 8- to 20-carat yellow diamond in the
lower-color range — fancy light and fancy — has gained popularity in the US in
VS2 to SI1 to SI2 clarities.”
Cushion cuts remain popular for both white and colored
diamonds. Wiener pointed to his company’s proprietary Kotlar Cushion, a
61-facet cushion-cut diamond, as “always selling strong,” but added that
“emerald cuts seem to be very hot lately.”
In addition to the rose and old mine cuts, Manak has
observed a trend for ovals, as well as rounds, which are traditionally in
demand. According to Scarselli, radiant cuts are also favored on the
colored-diamond market.
All three concurred that prices were stable. Wiener noted
inventory was easy to replenish. Manak indicated no problem in sourcing F, G, H
and I goods and VS1 to VS2 clarities in up to 5 carats.
Scarselli, too, said replacing the yellow diamonds was not
difficult. However, he cited a “disconnect” in the US market between retail
demand and the ability to supply diamonds in specific color ranges. He drew a
distinction between yellow diamonds and the often smaller — but rarer — vivid
and intense pink and blue, which are extremely difficult to source.
“I think the rest of the world has caught up. But we get
tremendous requests for these pink and blue diamonds that are not even
available at the level of rough,” he said. Emphasizing that retailers needed to
be more realistic in educating their customers about availability and price, he
gave an example in which a buyer’s budget for a 2-carat intense pink was too
low even for a light pink. Scarselli also cited a “severe” liquidity shortage
that had resulted in a lack of speculative buying.
Article from the Rapaport Magazine - October 2017. To subscribe click here.