International Fancy Color Diamond Dealers Discuss Market Dynamics

For the first time in two years, people were able to travel from around the world to attend the GemGeneve international gem and jewelry show that took place in Geneva on November 4-7, 2021. Energy and excitement filled the air as attendees expressed their delight at finally meeting up again in person after two years of restricted travel. The enthusiastic smiles that filled the room shone as brightly as the unique, exquisite diamonds at the exhibition.

The FCRF caught up with several key exhibitors to get their inside take on market dynamics and trends. Here are their thoughts on GemGeneve and the industry overall. 

Name:  Marianne Fisher   Company: Paul Fisher, Inc. 

1. After two years without a trade show, how do you find the demand for natural fancy color diamonds?

Marianna: Demand is extremely strong for high-end fancy color diamonds, especially in the Pink and Blue categories.

2. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Marianna: I personally did not see a specific increase in demand for Yellow diamonds, although there has been a huge rise in demand for Blue and Pink diamonds in the high-end market. 

For example, I recently received requests for a 3 carat vivid Blue, a 10 carat vivid Blue, and 2 clients in China requested a 5 carat vivid Pink. The very wealthy are buying, and demand is huge for high-end fancy color diamonds. The problem today is finding rare fancy color diamonds. Fancy lights, light Blue gray, and odd colors are a difficult sell right now. 

3. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

Marianna: I have definitely seen improvements in transactions conducted through digital platforms, but there is still a long way to go. My business is an online B2B platform, and getting clients accustomed to it has been challenging, since most people are still very “old school” in their thinking. 

I believe that due to COVID, online sales transactions of modern jewelry and colorless diamonds have gone up 40-50% in the past two years, with the most popular platform being Instagram. This would never have happened if not for the pandemic, and I think this trend will continue, especially with the younger generation. 

When selling unique jewels such as fancy color diamonds, it is very difficult to make a sale online. Digital platforms are an excellent tool to attract clients to fancy color diamonds, but face-to-face transactions are still necessary to see the diamond up close and personal. In person, you can get a true sense of the rarity of the color, you can view the color under different lighting, and you can touch the diamond. This adds a vital element of personal connection with the diamond and the client.

Name: Richard Vainer  Company: Imperial Gems

1. After two years without a trade show, how do you find the demand for natural fancy color diamonds?

Richard:  GemGeneve is a beautiful show and it’s wonderful to see everyone again. The lockdown brought about pent-up demand, but as for specific demand for natural fancy color diamonds, I believe it’s still too early to tell.

2. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Richard: I see strong demand and rising prices for vivid Yellows. Overall, I think prices fell briefly during the pandemic, and prices are now recovering. 

3. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

Richard: Personally, I will only buy stones I have seen myself or had someone I trust view on my behalf. As someone who has been in the business for so long and worked very hard to gain experience, I am a bit disappointed as you can imagine. My polisher and I have over 100 years of experience between the two of us, and some of the diamonds we polished were in the Special Diamonds book. When I look at a diamond with intent to purchase, I look at it in different lights, under a diamond light, inside the booth, outside the booth, or in natural light. 

COVID may have propelled the industry towards the use of digital platforms, but their use diminishes people’s knowledge even as it broadens the ability to do business.

Name:  Marc Boghossian Company:  Bomare SA

1. After two years without a trade show, how do you find the demand for natural fancy color diamonds?

Marc: I found demand quite sustained, even during the height of COVID. I believe people are trying to invest and purchase tangible assets in a world of digital communication and digital values. People want physical assets, whether diamonds, colored stones or gemstones, or even art. In unpredictable times, these investments feel reliable.

2. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Marc: I think the increase is marginal. High-end Yellow diamonds are in short supply and there is high demand for them, therefore they show the largest increase in price. 

Generally speaking, there is less demand for regular Yellows, mainly due to the US market being less active than before. Pinks and Blues are very unique items and very hard to source, so demand is high in that category as well.

3. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

Marc: We have been forced to adapt, and it hasn’t been by choice. People have adjusted quite easily, and have come to accept making decisions based on videos and photographs. We also see this happening in the art world. COVID certainly brought about greater acceptance of this trend. As a professional, I do find it difficult to make a decision based on a video or photograph. I always ask to see a stone in person before making a final buying decision. 

Name:  David Abramov Company:  Morello Davidson

1. After two years without a trade show, how do you find the demand for natural fancy color diamonds?

David: I think demand is quite strong. Many people have been asking for Pink diamonds, and the only Pink diamond we had at the show was a small fancy vivid Pink. That stone was sold to a dealer who was the first person who came in and inquired about it. 

2. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

David: I have not seen a particular demand for Yellow diamonds. I have seen a demand for Pinks, especially since the closing of the Argyle mine.

3. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

David: Yes, 100%. Instagram and WhatsApp are very popular, as is The Jewelers Circle which is used for B2B transactions. Clients today are absolutely more open to remote transactions.

Name: Dean Konig  Company: Fima Diamonds

1. After two years without a trade show, how do you find the demand for natural fancy color diamonds?

Dean: Demand is very high due to a shortage of quality goods in the market. Traders, manufacturers, and clients are all feeling the impact of this increased demand. 

2. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Dean: Prior to COVID, we noticed some slowing down. Right now, there is increased demand for Yellow diamonds, and people are buying quickly. I also notice a very high demand for Blue and Pink diamonds in the 1 – 3 carat range. There has been less activity with larger-sized stones, which is likely due to Asia being shut down. 

3. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

Dean: I started my business account on Instagram immediately before COVID began. Today, I have 13K followers, and it has completely changed my business. I can update my stock daily, and my account is an eye-catcher for unique products. I’ve met many new people and conducted many transactions on Instagram, which has been a real boost for my company. 

Not all diamond professionals were able to attend GemGeneve. We decided to include a few of our valued members in the interview to get their input on the current market demand and how they have seen business transactions evolve since COVID.

Name: Melanie and Amir Goldfiner  Company: Rahaminov Diamonds

1. After two years without a trade show, how do you find the demand for natural fancy color diamonds?

Amir: The JCK Las Vegas Show was an amazing show, and we did very well. I also attended GemGeneve, but I came as a buyer and I was only there for 2 days, so I don’t really know how the show went.

2. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Melanie: The luxury market as a whole has gone up and there is an extremely high demand for high-end Yellow, Pink, and Blue diamonds. Retailers are buying, and they need merchandise for their stores, especially with the upcoming holiday season. Production times have fallen far behind, both in the rough and in the jewelry industry. Now more than ever, jewelers must remember that if they wish to sell merchandise, they must have inventory. 

3. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

Melanie: The market has definitely changed, and Instagram is a very important tool. I find it is necessary to have professional photography, videos, and advertisements. 

With our type of merchandise and our price tags, we haven’t seen clients buy goods based on a photograph or video. Customers feel the need to see the merchandise first-hand, especially when it comes to color diamonds which you really need to see in person. Digital platforms are a very useful tool to help narrow down your budget and what you’re looking for, but the final decision leading to a transaction needs to be in person.

Name: Deepak Sheth  Company: Excellent Facets, Inc. 

1. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Deepak: Yes. Prices have increased and demand has also risen between 10 – 20% over the past year. Most increases are in Fancy and Intense Yellow. Many transactions are taking place and the dealers / retailers are paying the new prices. The overall market has firmed up. When it comes to fancy Pinks and Blues, there is a large demand for nicer stones, alongside a shortage in supply. 

2. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

Deepak: Dealers / retailers are adapting digital technology slowly but surely, but most people would like to see high-end fancy color diamonds in person. As when trying to see a diamond on video or Zoom, color on a screen isn’t accurate enough. Every viewing screen is of different resolution, lighting, tone and colors. To gauge initial interest in a fancy color diamond, digital platforms are great, but for stones that cost $100,000+, a client needs to see the fancy color diamond in person. Some people if they are not able to see the fancy color diamond in person because of geographical constraints, they will ask a trusted advisor to  inspect the fancy color diamond on their behalf  for the visual inspection and comment to make the final decision.

Name: Gall Raiman  Company: Raiman Rocks

1. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Gall: I see an increase of 20 – 25% in demand for Yellow diamonds. However, I find that Pinks have the strongest demand right now and there is not enough supply. Pinks are hot! I do not see as much demand for the Blue category these days.

2. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

Gall: I don’t see a particular change in this realm. My clients are high-end jewelry stores, and most transactions are sent to stores through short-term memo consignment. The stores buy the diamond if their client purchases it; otherwise, they send it back. Less expensive pieces that cost between $50,000 – $75,000 can be sold through digital platforms even if they are not viewed in person. When it comes to any pieces that cost over $100,000, the client will want to see the diamond in person first.

Name:  Rayah Levy  Company: Forever Capital

1. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Rayah: Yes, there has been a larger demand for Yellow diamonds in the general market. I primarily focus on Pinks and Blues since we are a color diamond investment group. There is currently a significant difference between Pinks and Blues. I find that Pinks have the strongest demand due to the closure of the Argyle mine which has led to significant price increases. 

2. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions? 

Rayah: People are adapting, and we all use digital platforms to communicate. However, because natural color diamonds are rare and are a large investment, I don’t purchase anything without an in-person viewing. Our clients want in-person meetings to finalize any investments as opposed to Zoom meetings. It’s unclear whether that will change. Many financial institutions consider fancy color diamonds a major trading commodity. Digital platforms may lead to fewer in-person sales and positively affect the retail market. 

Name: Brian Denney  Company: Gem of Note

1. According to the last FCD index, Yellow diamonds have increased in price. Have you noticed increased demand in that category?

Brian: Yes, I have seen an increase in demand over the past year. There has been a very strong demand in the fancy Yellow 2-5 carat range. 

2. Since COVID, do you feel the market has adapted to carrying out transactions through digital platforms such as Zoom, email, and WhatsApp in place of face-to-face transactions? Have clients become more open to remote transactions?

Brain: All of my transactions are completed face to face. Zoom has helped provide a more personal connection as opposed to a regular phone call. I completed a tender through a platform similar to Zoom and I felt it was very ineffective. Instagram also isn’t helpful for my business, since I am a wholesaler. I find it more effective to have an online site with the proper videos and images.