Personal Consultation
By Leibish Polnauer, President & Founder
Edited by Diana JarrettOur industry must keep abreast of news affecting the jewelry trade to stay relevant and make sound decisions going forward. Rapaport News is a dominant voice in reporting the global climate of the diamond trade. So that’s good. But so is exercising wisdom in delivering the narrative to those grappling with the effects of the rollercoaster ride we’re on.
“Diamond prices declined in June as sales dropped and inventories grew. Indian manufacturers reduced production, but sales fell at a sharper rate due to weak demand. This led to an oversupply and pressure to sell.” These were the leading comments from Rapaport News July 2, 2024, press release.
To put it into perspective, for Indian manufacturers to reduce production is a big deal. Over 90% of the world’s supply of cut and polished diamonds is moved through Surat, India.
So, while there’s a lot of data to process, the tone of the press release describing diamonds in a free fall makes our ailing industry feel even worse.
Let me point out something I observed in Rapaport Market Comment on July 16, 2024. While the statement is comprised of about 25 words, nearly every term is negative.
Seasonal Lull
Yes, in the short term, prices experienced a decline of 2 % in June. That is a seasonal, cyclical occurrence, however. But Rapaport likes to make bitchy comments on the state of the diamond market, saying---
- prices declined
- sales dropped
- inventories grew
- reduced production
- sales fell at a sharper rate
- weak demand
- oversupply
- pressure to sell
Martin RappaportKick ‘em when they’re down
It’s like visiting a sick friend who could really use a kind word or medicine to ease the pain and lift the mood. But after seeing his condition, you tell him, “Your health has declined terribly!” Then you support your verdict by saying, “The bacterium in your body is growing, and you’ll deteriorate even more sharply. Let’s face it: you are in very bad shape, and you’re probably going to die. There’s no hope for you.”
The worst part of the Rapaport Market Report is not the actual price list in itself. I am not in a position to comment on its validity. What I can speak of is that he repeatedly inserted those negative phrases into the market several times a week.
So, these vitriolic comments are the real poison undermining the market's natural desire to elevate itself from its inertia and pursue a trajectory of healthy growth.
Choose Words Wisely
It begs the question---what is the benefit to its readers or to consumers of such content?
Key players within the diamond and gemstone sector can be realistic about the current diamond landscape yet choose different ways to communicate these observations—without fostering a sense of dread.
At the end of the financial year 2023, Hong Kong-based conglomerate Chow Tai Fook Jewelry had a total of 7,655 jewelry stores worldwide. The majority of them, 7,519 stores, were located in mainland China. Nasdaq (Chow Tai Fook Jewellery Group FY23 Annual results) referred to them as resilient, backed by their disciplined cost management and pricing strategy optimism.
In June, Chow Tai Fook management encouragingly noted, “We have observed a stabilizing sales trend across various gem-set collections…underpinning our confidence on the long-term prospects of diamond jewelry."
What a radically different outlook in the mindset of the diamond decline. It’s staggering to compare Chow Tai Fook’s viewpoint to Rapaport’s poisoning comments.
It underscores my view that people can look truthfully at the same scenario and come to completely different conclusions --- all depending on their mental outlook.
Shouldn’t we likewise adopt a more positive attitude?
