ARE HIGHER DIAMOND PRICES HERE TO STAY?

[BrianTheCutter]

The De Beers sights are over and dealers are bracing for the impact of higher
official prices for better-quality roughs that cut polished from 1 to 3 carats.
Some commentators say they doubt whether the market will be able to
absorb the increase and that dealers will simply have to work on pancake-thin margins.
In other words, the margin squeeze will get worse.

To me, the ideas of massive price resistance or massive refusal to buy seem
like wishful thinking.
In support of this, I note that the discount rate from Rapaport
(The price sheet,traders use) is shrinking. And all the while, Rapaport is steadily raising prices.
So the market is adjusting to reality.
That means that, like it or not, prices, which have been acting uppity for some time, will continue to do so.
I have no choice—nor do any of my peers—but to pay the piper.

 

[valeria101]

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On 8/25/2004 12:56:37 AM BrianTheCutter wrote:



The De Beers sights are over and dealers are bracing for the impact of higher
official prices for better-quality roughs that cut polished from 1 to 3 carats.

----------------

Is there an (official or not) explanation to why this was done ?


It seems absurd to me to hear about rough prices increasing when retail margins go down

Obviously there is one bit I am missing...

 

[strmrdr]

lets see if i can do a resonable reply without ranting well maybe just with ranting a little bit. :}

One excuse seems to be that they were underpriced compared to the compitition.
Which is exackly how they planned it to happen.
A while back I said it was going to happen.

Here is the plan:
1> Cut back on who they sell too.
2> This increases demand on the rest of the supply they dont controll.
3> Prices rise on the diamond rough from the other suppliers due to increased demand.
4>DeBeers uses it as an excuse to raise their prices.
5> The rest of the suppliers raise their prices matching the increase.
6> DeBeers raises their prices again using the same excuse.
wash rince repeat.

It worked perfectly.

DeBeers same song second dance just another way to controll the market.

 

[chialea]

I'm getting married without any diamonds involved whatsoever. I believe it's not entirely without precedent.

 

[oldminer]

Chialea;




Getting married without diamonds? It shows your individuality and the strength of your own personal vision.....or you are sticking to a budget and acting very grown up... Either way, I won't say anything bad about you. I'd be willing to bet that you are utlizing some other form of symbolic bonding or recognition of your marraige. Whether it is a different gem, a precious painting, an ornament, a sentimental item, I couldn't guess. Generally there is some element of memorabilia attached to important events. If it isn't a diamond there is usually some other thing that represents the committment.




Diamond just happen to be a very appropriate and convenient item that society uses for engagement and marraige. There must be many other things that could be used. Without great advertising campaigns many people would be using alternatives.




Best of luck....Now go out an buy some diamonds, too! Just for fun, not symbolic ones.

 

[valeria101]

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On 8/26/2004 11:05:46 AM oldminer wrote:



I'd be willing to bet that you are utlizing some other form of symbolic bonding or recognition of your marraige.

----------------

Sure! It's called "Church".

With no peer preassure to buy a diamond, the e-ring storry sounds downright funny to me from where I stand.

 

[valeria101]

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On 8/25/2004 8:33:38 AM Feydakin wrote: [...] all commodity items that have led the way in all but removing the wholesale / retail channel in favor of a direct sale model.. ----------------

See, this is the reply I was hoping for.

Since, as far as I know, there isn't much "traditional" vertical integration in the diamond business. Just that the same guys that do the digging pay for the posters. It didn't pay until now to kill the middle men. I seriously doubt that this is anyone's intention.

Can a luxury merchandise also be a commodity?




Anyway, at least in the past the relative prices of different types of diamonds were modified using the price of rough in order to rise demand for whatever type of material happened to be available at the moment. This sounds like the extension of that 'Right Hand ring" advertising campaign that also touts smaller diamonds in bulk.
Without much detail (for lack of serious research on my part, I do admit it) about how this supply chain works, this is just recovering hystory. The other such instance was the birth of the eternity ring if you remember

I would expect some long-term pricing policy to drive lower quality (or plainly, lower price) cut diamonds off jewelers' shelves too and a price increase accross the board does fit the bill.

 

[BrianTheCutter]

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On 8/26/2004 10:33:13 AM chialea wrote:





I'm getting married without any diamonds involved whatsoever. I believe it's not entirely without precedent.
----------------

Chiliea:

Your statement is true here! You can do something else, like the people from the Zulu nation.

Pay your future father-inlaw 10 cows and make sure you get a beautiful veil this

Sure is an alternative to a diamond ring here is a link to a reenactment of a traditional Zulu wedding I attended recently on my trip toSouth Africa

https://www.pricescope.com/community/threads/brian-the-cutter-and-the-zulu-wedding.17615/

/www.pricescope.com/idealbb/images/smilies/3.gif[/img]Enjoy /idealbb/images/smilies/twirl.gif

 

[valeria101]

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On 8/26/2004 2:41:35 PM BrianTheCutter wrote: <[...]

You can do something else, like the people from the Zulu nation.

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Hm... or Romanians

Actually, if those around you give predictably bad feedback, it always takes guts to do it 'differently' no matter what that means. Some show cows... some carats

It's the number that counts always, it seems

Anyone Zulu around ?