Why diamond prices are going up?
The diamond brand is a neglected specimen, related to no one or owned by someone, does not have a family or someone who owns it.
While manufacturing costs soar in the past years diamond prices have declined. Rather than being traded as a valuable and rare treasure diamonds are traded as tuna fish, soya bean or cotton, at various discounts below the Rapaport Price List cross the board.
This is, in my opinion, the most important obstacle in the way of recovery of this precious rock. Pricelist is bad for the industry as well as the customer that perceive the Rapaport Price List is as a holy script.
There are no two stones on the face of this earth that are alike in luster and rarity. You might find two stones we the F color and VS1 clarity but the difference between these two can be substantial. Only the trained eye can distinguish between an average stone to a great one.
The bi-weekly diamond prices suppress the future of the industry and damage it. It reduces the desire to buy diamonds for stock and places those in charge of the publication of the list in a dominant position rather than those who manufacture or hold the diamonds. Rapaport is also active trade and has his own auctions and then publishes his prices and sell information for a fee,
Diamond prices are finally starting to recover slowly, as Will Will Horner writes in the Wall Street Journal:
“Polished diamond prices are up 5.1% from their lowest point in March, putting them at their highest level in nearly a year and a half, according to a gauge compiled by the International Diamond Exchange.”
Our activity at Leisbih is marginal when it comes to normal white goods and our brand does not depend on the Rapaport Price List or on De Beers Diamond supply.
The latter the second obstacle to our recovery as they promote their own Labgrown Diamond Brand and give at least a temporarily debranding effect on real natural diamonds. But Lab grown diamonds are not forever. They are merely an imitation and their prices are down by 35% this year which means there is less demand for them.
Leibish is a Family Brand based on the world of color. At Leibish you will find Fancycolor diamond and Gemstones, No Labgrown, no HPHT, no radiated, no gimmicks.
Our clients seek commitment and diamonds that are eternal rather than cheap imitations and gimmicks.
With Covid-19 hitting us our desire for something that will be everlasting grew. Still, diamonds are sold at a 70% discount of their eternal value.
Overproductions or borrowed money created large stockpiles and pushed the price downward. With the closure of the Surat factories of 1 million workers the stockpile has dried up and the demand is larger than manufacturing. The pipeline was interrupted as well and the goods are not coming in as fast as they go downstream. Some goods became rare and difficult to find ( but not as rare as Argyle Pink diamonds).
At the end of the day what we’re looking for is a piece that symbolized our relationship with our loved ones, a diamond that is dear to us that can be passed from one generation to the next one. Not a fake product.
The Jewelry of icons Elisabeth Taylor and Dutches of Windsor are auctioned off at record prices because they are authentic. Just like Leibish.