An interesting article in todays Wall Stree Journal

[Bosie]

Saturday, Sept. 11, WSJ, has a supplement enclosed, one of the articles is called "A Rock in a Hard Place". It discusses the downturn in the diamond business over the past year or so.
Some of the key points are:
Harry Winston sales off 30%.
Tiffany off 22%.
DeBeers practically ceased production in their mines in the first quarter.
This coming year, industry expects a 10-20% further decline in sales.
Massive layoffs in India (over 200,000 have lost jobs in diamond industry)
Zales shuttered 115 of their stores.
Whitehall Jewelers out of business.
Christian Bernard Stores and Four Points closed.
"One carat, high quality diamond(those with high marks for color, cut and clarity) have dropped in price by more than 20% in the past year, with a polished rock now selling for around $8,600 down from around $11,000. Five carat gems have dropped more than 30%, down to around $57,000".
"For true discounts, look to small independent retailers, as they may be really wanting to be moving merchandise just to stay in business".
Some recovery in 2010, full recovery predicted in 2011.
"Great time for the consumer".

 

[Sam82]

I read the entire article. It makes sense. Diamonds aren''t exactly a necessity. Of course people are going to cut back.

 

[Harriet]

Richemont, which owns Cartier and VCA, has also reported a drop in earnings. That said, the price of diamond rough has risen.

 

[diagem]

Date: 9/12/2009 7:49:26 AM
Author:Bosie
Saturday, Sept. 11, WSJ, has a supplement enclosed, one of the articles is called ''A Rock in a Hard Place''. It discusses the downturn in the diamond business over the past year or so.
Some of the key points are:
Harry Winston sales off 30%.
Tiffany off 22%.
DeBeers practically ceased production in their mines in the first quarter.
This coming year, industry expects a 10-20% further decline in sales.
Massive layoffs in India (over 200,000 have lost jobs in diamond industry)
Zales shuttered 115 of their stores.
Whitehall Jewelers out of business.
Christian Bernard Stores and Four Points closed.
''One carat, high quality diamond(those with high marks for color, cut and clarity) have dropped in price by more than 20% in the past year, with a polished rock now selling for around $8,600 down from around $11,000. Five carat gems have dropped more than 30%, down to around $57,000''.
''For true discounts, look to small independent retailers, as they may be really wanting to be moving merchandise just to stay in business''.
Some recovery in 2010, full recovery predicted in 2011.
''Great time for the consumer''.

Not everything you read is 100% true... (you must know that

)

Yes..., the industry is going through a major shake up..., but I see it as positive and welcomed (there was no escaping), some Companies are doing great and some are on their way out (or out already), like everywhere else.
Prices are pretty darn stable (surprisingly I must add) and Companies with creativeness and innovations will Cruise through these rough waters and will be positioned correctly for the new era in which the industry is entering...


It would be nice for all if we could put our hands on 5ct Gems at $57,000..., you might mean maybe "per carat"??

 

[Garry H (Cut Nut)]

Date: 9/12/2009 12:13:18 PM
Author: DiaGem

Date: 9/12/2009 7:49:26 AM
Author:Bosie
Saturday, Sept. 11, WSJ, has a supplement enclosed, one of the articles is called ''A Rock in a Hard Place''. It discusses the downturn in the diamond business over the past year or so.
Some of the key points are:
Harry Winston sales off 30%.
Tiffany off 22%.
DeBeers practically ceased production in their mines in the first quarter.
This coming year, industry expects a 10-20% further decline in sales.
Massive layoffs in India (over 200,000 have lost jobs in diamond industry)
Zales shuttered 115 of their stores.
Whitehall Jewelers out of business.
Christian Bernard Stores and Four Points closed.
''One carat, high quality diamond(those with high marks for color, cut and clarity) have dropped in price by more than 20% in the past year, with a polished rock now selling for around $8,600 down from around $11,000. Five carat gems have dropped more than 30%, down to around $57,000''.
''For true discounts, look to small independent retailers, as they may be really wanting to be moving merchandise just to stay in business''.
Some recovery in 2010, full recovery predicted in 2011.
''Great time for the consumer''.

Not everything you read is 100% true... (you must know that

)

Yes..., the industry is going through a major shake up..., but I see it as positive and welcomed (there was no escaping), some Companies are doing great and some are on their way out (or out already), like everywhere else.
Prices are pretty darn stable (surprisingly I must add) and Companies with creativeness and innovations will Cruise through these rough waters and will be positioned correctly for the new era in which the industry is entering...


It would be nice for all if we could put our hands on 5ct Gems at $57,000..., you might mean maybe ''per carat''??

The 20% price drop may have happened at retail when retailers are having sales because they are pushed for cash flow.
But the real listed wholesale prices of under 2 carat diamonds have not changed much over the medium term
http://www.pricescope.com/diamond-pricing-history-chart.asp
this is the Chart from Pricescope real data shown on the front page

 

[megeve]

Date: 9/12/2009 11:26:25 AM
Author: Harriet
Richemont, which owns Cartier and VCA, has also reported a drop in earnings. That said, the price of diamond rough has risen.

Only in the US. In Asia-Pacific region, they are still doing well. One only has to watch their share price. Its going up!