- Joined
- Sep 2, 2002
- Messages
- 2,859
Over the past year, we have seen a number of price increases of rough diamonds. At first, I had mixed feelings about these increases, because on the one hand, I saw an oversupply of polished diamonds in the market, while on the other hand, I saw a long term undersupply of rough, with basically no substantial new deposits found these last years.
With our heart being closer to the consumers'' market, we took the position of trying to maintain a constant pricing policy, since the oversupply of polished would probably dictate rough prices downwards again.
When we look at the market today however, we see that there is a genuine shortage of bigger size-polished, and although many sites still show a high number of available stones, the question is how many of these stones are really still available.
On the other hand, last week''s price increase clearly shows that the direction of rough prices is still up, and conditions in this market indicate that, this year, there will continue to be an upward pressure on prices.
With this in mind, and looking at our company''s position, it is clear that we cannot maintain our policy of constant prices. Effective today, we have decided that we need to adapt our prices to current market conditions. This translates in a current increase of 5%. We will need to evaluate our position within a few weeks in order to establish whether this increase was sufficient.
All our dealers have been informed about this situation, and they understand that we had no other way. I hope that you all understand that this is not a matter of greed, but definitely a matter of securing our long-term-viability.
And may I end with a final warning? As much as I dislike the situation, it is important for consumers to understand that we are not at the end of upward pressure on rough prices.
I thank you all for your support, and I assure you that I did not like writing this post.
Live long,
With our heart being closer to the consumers'' market, we took the position of trying to maintain a constant pricing policy, since the oversupply of polished would probably dictate rough prices downwards again.
When we look at the market today however, we see that there is a genuine shortage of bigger size-polished, and although many sites still show a high number of available stones, the question is how many of these stones are really still available.
On the other hand, last week''s price increase clearly shows that the direction of rough prices is still up, and conditions in this market indicate that, this year, there will continue to be an upward pressure on prices.
With this in mind, and looking at our company''s position, it is clear that we cannot maintain our policy of constant prices. Effective today, we have decided that we need to adapt our prices to current market conditions. This translates in a current increase of 5%. We will need to evaluate our position within a few weeks in order to establish whether this increase was sufficient.
All our dealers have been informed about this situation, and they understand that we had no other way. I hope that you all understand that this is not a matter of greed, but definitely a matter of securing our long-term-viability.
And may I end with a final warning? As much as I dislike the situation, it is important for consumers to understand that we are not at the end of upward pressure on rough prices.
I thank you all for your support, and I assure you that I did not like writing this post.
Live long,
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