The FCRF data suppliers are 24 of the most influential fancy color diamond companies in the market. Among these companies are manufacturers, traders and other specialists, each representing a different segment of the fancy color niche. The data suppliers, in addition to being members of the FCRF, are responsible for providing high quality pricing data every quarter in order to generate the Fancy Color Diamond Index (FCDI). The interviews below provide insights on the quarterly index readings.
Data Suppliers: Index Feedback
Name
John Gajz
Company
Glajz
Dealing in Fancy Color Since
1980
Location of Offices
Singapore
Fancy Color Price Category
Medium to High
Knowing that two out of three, Fancy Color Diamonds buyers in the world are Chinese, what is the impact of the civil riots in Hong Kong on Fancy Color Diamond prices?
For the moment, the impact is less than I had expected. The impact on the HK market is still unclear, but we can see that the Chinese clients are shopping outside of the ‘normal’ channels. However, there’s less liquidity in the market and there is less ‘inner-dealer’ action, which also fuses the demand, but I haven’t seen many distress sales, as I would have expected.
What is the reason that we are seeing a decrease in the amount of fine Fancy Color goods at auction? Is the reason the low-price results in comparison to the market price, or just less availability on the market?
Well, it’s a rare commodity. The auction houses and the people who own the stones are protecting the price. Internationally, I think transactions are more publicly visible than they used to be, which can make some owners to hold off to retain their privacy. In addition, I think today it’s not a priority to own something. Art seems to be doing better than the diamond industry for some reason.
Name
Marc Boghossian
Company
Bomare SA
Dealing in Fancy Color Since
1997
Location of Offices
Geneva, Switzerland
Fancy Color Price Category
Medium to High
Knowing that two out of three, Fancy Color Diamonds buyers in the world are Chinese, what is the impact of the civil riots in Hong Kong on Fancy Color Diamond prices?
The HK riots combined with monetary restrictions in China added to political uncertainty, and have pushed away consumers from diamonds, including Fancy Color Diamonds. This has inevitably created a softer market.
What is the reason that we are seeing a decrease in the amount of fine Fancy Color goods at auction? Is the reason the low-price results in comparison to the market price, or just less availability on the market?
There is a deliberate choice from the auction houses to maintain a sense of equilibrium in the fine Fancy Color goods available on the market. Holding on to Fancy Color Diamonds and waiting for a more favorable market is the right attitude. This was true for natural pearls in the past and it is true for FCD now.
Name
Bruno Scarselli
Company
Scarselli
Dealing in Fancy Color Since
1980
Location of Offices
USA, China
Fancy Color Price Category
Medium to High
Knowing that two out of three, Fancy Color Diamonds buyers in the world are Chinese, what is the impact of the civil riots in Hong Kong on Fancy Color Diamond prices?
I don’t think that the civil riots in HK are directly affecting Fancy Color Diamond prices. What the civil riots are doing is temporarily keeping people away from HK to come and source merchandise. However, these are cycles that could easily change, especially in times of uncertainty when portable wealth, that traditionally maintains its value, becomes more lucrative.
What is the reason that we are seeing a decrease in the amount of fine Fancy Color goods at auction? Is the reason the low-price results in comparison to the market price, or just less availability on the market?
The general mindset is that when merchandise is rare it is sold for a higher price. Five years ago we were used to seeing very special large Fancy Color Diamonds sold for record prices. These were unique and rare pieces, aimed to collectors, and today the auctions offer smaller diamonds which leads to owning Fancy Color diamonds becoming a mainstream trend.
What are your thoughts on the future of the Fancy Color Diamond market?
I believe most people think that there’s lots of Fancy Color Diamonds in the mines, but we know that there are more diamonds in people’s safes around the world than there are reachable underground. I perceive there will be a greater profitability in the marketplace, because there will be fewer people owning the merchandise. The prices will be lower and it will allow people to buy more diamonds. I believe this market swing should come most likely in the second half of next year.