Diamond Buyers: Prepare yourselves...

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ame

ame

O.G.
Mar 22, 2007
13,432
1,039
#1
Diamonds are going to be a lot pricier very soon.

Sorry to say.

http://www.idexonline.com/portal_FullNews.asp?SID=&id=35000

As a jewelry store owner and one who purchases and has rough cut from the source, Idex has published this article which consumers will see materialize in the very near future. I've been feeling this already in my buying and cutting of rough but as of this month the pinch is even tighter as rough is trading around 20-30% more.

From the article:

Outlook: No Relief from Inflation

As the global economy begins to heat up, there will be increasing demand for “hard assets” – specifically commodities including gold, platinum, silver, palladium and diamonds. All of those commodities are major cost components of jewelry.

Until recently, industry labor costs remained modest as producers moved their factories to China and other countries with low-cost labor. However, not only are there no developing countries left with lower labor costs, but labor costs in the Far East are rising. Thus, we expect to the see the labor cost component of jewelry begin to rise in 2011 and beyond.

Retailers are faced with a major dilemma: consumers are seeking a value – better quality goods for a low price – but they also are seeking low price-point merchandise, a trend we saw throughout 2009 and 2010. The quality of merchandise at the “hot” $99 retail price point has deteriorated, and will continue to decline until it becomes junk jewelry. Somehow, consumers will need to be re-educated: you cannot have something for nothing. That is the job of the industry: to explain the value of “luxury” to shoppers.
Click to expand...
 
#6
YES! I just saw this today so I figured I better IMMEDIATELY warn you guys. Especially LES and WHOOPS! Don't settle but I guess my "wait and see" might not be so good!
 
#7
Somebody else on here posted a similar experience about this a few weeks ago (or was that a different forum?) But they had been wanting a certain diamond in December, went back 2 weeks later in January and it was 30% more!
That sucks.
 
#8
Yea there was an increase in the beginning of January but that was well expected. It seems like that happens each year after the holidays.
 
#12
My jeweler confirmed this as well! He sounded disappointed because he knows it means that he'll probably lose some customers, I feel junk jewelery is going to take over the market. So sad....
 
#15
Just told FI we need to buy our platinum bands stat. Tiffany just had their price increase and the cost of my wedding band is still reasonable (just getting the classic knife edge band)... It's FI who will be the expensive one this time: men's size 9 finger and his long hands means a 7mm-9mm width looks best. The reputable non-Tiffany shops here in town were already quoting him $3k.
 
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