Waldman Diamond Company

Diamond Market Report - February market slower than forecast, polished prices under pressure
March 25, 2002

Sales of polished goods in sizes up to one carat are somewhat slower than had been forecast, following the brisk pace at which they had been moving from the final two weeks of the holiday season and through late January 2002. "Because the industry closed last year on a stronger than expected note, optimistic manufacturers went out and bought more rough, expecting that their clients would be back early to stock up on goods," reported Aharon Amir, senior sales director at the Waldman Diamond Company (WDC) Group, in Ramat Gan. "As a result, rough price notched up. But, unfortunately, polished prices did quite not follow suit."

In the U.S. market, polished goods in H-I color ranges and SI clarities are in good demand. "There is a readiness to downgrade in color and clarity, but not in make," Amir stated. "When it comes to the better goods, there is a demand for collection colors-F colors and up-in the VS clarity ranges, but prices are still under pressure."

The Hong Kong market is active, now that the Chinese New Year celebrations have come to an end. Demand is strong particularly for high quality goods in sizes of up to one carat.

In Mainland China, the market is looking for stones in the I color range and higher, VS clarity plus, in sizes of 10 points and up.

The European markets have been quiet, and have been ever since the Euro was brought into circulation.

In Japan, price points continue to fall. While the economy shows some signs of improvement-mostly because the lower-valued yen, which has improved the position of exporters-there has been no real change in the fortunes of the diamond market. "Diamond jewelry buyers will buy at lower prices, but demand to be supplied with better goods," said Gal Vered, WDC's sales director for Japan.

Buyers are also looking for bargains when it comes to goods larger than one carat. "It must be cheap, and it better be good," said Simeon Lee Loon, WDC's sales director for larger goods. "When the prices are is low, the goods will sell. Otherwise, there is little demand, since both wholesalers and retailers seem to have enough goods in their safes to last for a while. This is true both for the United States and the Far East.