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
David Houta
Company
Ella M.D. Ltd.
Dealing in Fancy Color Since
1996
Location of Offices
Israel
Fancy Color Price Category
Medium to High
Yellow fancy color diamond prices have reached new highs.
Do you believe this increase will impact margins in the wholesale market? (Meaning, will wholesalers need to reduce their margins to sell faster until retailers adapt to the new prices?)
How quickly do you expect retailers to adapt to the new prices?
Do you believe this increase will impact margins in the wholesale market? (Meaning, will wholesalers need to reduce their margins to sell faster until retailers adapt to the new prices?)
How quickly do you expect retailers to adapt to the new prices?
In our business, when prices go up, the wholesale profit margin usually decreases. Manufacturers are the first to experience the rise of roughs and they must impose it on wholesalers and retailers.
This time, I don’t see a decrease in profits happening for several reasons:
1. A lack of available merchandise due to the ban on Russia, the world’s largest diamond producer, and the fact that worldwide production has not fully recovered from the Covid slowdown.
2. Consumers are aware of inflation and understand the instability of currency compared to stable commodities and luxury items like diamonds.
3. Increasing demand from China that was confined during the pandemic.
4. Finally, profit margins are already so low for manufacturers and wholesalers that there is no room for a further decrease.
I think retailers have already adapted to the increase of yellow diamond prices. Big luxury brands like LVMH or Richemont had record years in 2021-22 without depending on China, and they will compete to find the right merchandise in 2023.
This time, I don’t see a decrease in profits happening for several reasons:
1. A lack of available merchandise due to the ban on Russia, the world’s largest diamond producer, and the fact that worldwide production has not fully recovered from the Covid slowdown.
2. Consumers are aware of inflation and understand the instability of currency compared to stable commodities and luxury items like diamonds.
3. Increasing demand from China that was confined during the pandemic.
4. Finally, profit margins are already so low for manufacturers and wholesalers that there is no room for a further decrease.
I think retailers have already adapted to the increase of yellow diamond prices. Big luxury brands like LVMH or Richemont had record years in 2021-22 without depending on China, and they will compete to find the right merchandise in 2023.
Name
Marcel Herszaft
Company
Herszaft & Rachminov Diamonds
Dealing in Fancy Color Since
2000
Location of Offices
Israel, Belgium, New York, Hong Kong, Bangkok, Japan, Shanghai
Fancy Color Price Category
Medium to High End
Yellow fancy color diamond prices have reached new highs.
Do you believe this increase will impact margins in the wholesale market? (Meaning, will wholesalers need to reduce their margins to sell faster until retailers adapt to the new prices?)
How quickly do you expect retailers to adapt to the new prices?
Do you believe this increase will impact margins in the wholesale market? (Meaning, will wholesalers need to reduce their margins to sell faster until retailers adapt to the new prices?)
How quickly do you expect retailers to adapt to the new prices?
Prices will go up and retailers will adapt quickly.
Name
Darshit Hirani
Company
P. Hirani Exports LLP
Dealing in Fancy Color Since
1991
Location of Offices
India
Fancy Color Price Category
Medium to High End
Yellow fancy color diamond prices have reached new highs.
Do you believe this increase will impact margins in the wholesale market? (Meaning, will wholesalers need to reduce their margins to sell faster until retailers adapt to the new prices?)
How quickly do you expect retailers to adapt to the new prices?
Do you believe this increase will impact margins in the wholesale market? (Meaning, will wholesalers need to reduce their margins to sell faster until retailers adapt to the new prices?)
How quickly do you expect retailers to adapt to the new prices?
Price increases are always slowly adapted in retail, hence creating a delay in price increase acceptance. Margins are being impacted overall, but it is still possible to fetch appropriate margins for one-of-a-kind or rare pieces.
Looking at supply, I believe retailers will adapt quickly to current price increases.
Looking at supply, I believe retailers will adapt quickly to current price increases.
Q3 2022
Name
Ishaia Gol
Company
Ishaia Trading Co.
Dealing in Fancy Color Since
1978
Location of Offices
New York, Geneva, and Ramat Gan
Fancy Color Price Category
Medium to High End
When the Chinese market reopens, what impact do you think it will have on the demand for fancy color diamonds?
I have no doubt that if the Chinese market reopens, it will have a strong impact on the market, being that this is a very big market. The Chinese have long been important clients for yellow diamonds, as well as very fine diamonds of other colors.
Name
David Ebrani
Company
Color Diamond Trading Co.
Dealing in Fancy Color Since
1988
Location of Offices
New York
Fancy Color Price Category
Medium to High End
When the Chinese market reopens, what impact do you think it will have on the demand for fancy color diamonds?
We interact constantly with clients in Hong Kong (and those who have offices in the mainland) and China. Their market has been relatively quiet post-COVID. Even once travel restrictions open up, I don't think that business will improve much. However, we do believe that future jewelry shows in Hong Kong can boost business once again, for them and for us.
Name
Eli Noor
Company
Ely & Co
Dealing in Fancy Color Since
1999
Location of Offices
Beverly Hills, California
Fancy Color Price Category
High End
When the Chinese market reopens, what impact do you think it will have on the demand for fancy color diamonds?
When the Chinese market reopens, I believe the demand will be phenomenal. Even while it has been closed, we have had quite a few requests coming in through Hong Kong for fancy color diamonds.