Waldman Diamond Company

Israel's August diamond exports feature high returns—typical of post-summer recess, says WDC's Waldman
September 2000

RAMAT GAN, ISRAEL - September is the month that Israel's diamond industry revs up to full speed after the summer recess. Returning from their holidays toward the end of August, diamond exporters were immediately swamped with work. But, for the most part, it was not because of clients, waiting in line to be let in. What awaited most of them were administrative tasks-checking and re-entering returned goods into the inventory.

In July 2000, a record $773 million worth of polished diamonds had been exported. But in August, $205 million worth of polished diamonds, weighing more than 125,000 carats, were returned. The gross export figures for August itself stood at $475 million, but when the returns were deducted a $270 million net total was yielded.

The high return figure was expected. Israeli diamantaires traditionally send out large quantities of their goods early in the summer and during the recess consequently, to let these goods "work" in the industry's principal market, the United States, while they are on vacation. And then, when the holidays are over, much of what remains unsold is returned home.

"For most of the industry in Israel, the period immediately following the summer recess is very intensive. Returned goods need to be re-entered into the inventory, and most need to be visually examined," noted Alexander Waldman, CEO of Waldman Diamond Company (WDC) Group.

"In that particular area, we actually are very lucky," Waldman continued. "We closely coordinate our work in Ramat Gan with our New York office throughout the year. This means that the flow of diamonds is seamless, with no bottlenecks occurring. As a result, the end of the summer time is no different for us, compared to other periods of the year."

Waldman spent much of his summer in the United States, keeping close tabs on the world's principal diamond market. "In North America, competition in the polished diamond wholesale business is not so much about price anymore. It's largely about quality, selection and the type of service being offered to the retailer. To make the grade, diamond suppliers must realize that they are being judged as carefully as the stones they sell."

WDC recently introduced its own diamond brand, the Ideal-Cut Hearts for Eternity™.

"These are diamonds cut and polished by our own facilities according to the coveted Ideal Cut triple zero (000) cut grade. To confirm this fact, they are accompanied by an American Gem Society (AGS) gemological grading report and by a serial number that is inscribed by laser, together with the Hearts for Eternity™ logo, on the girdle of these diamonds. The branded diamonds are available from 0.25 carats to 3.00 carats," Waldman stated.