Diamond Retailers in A Catch 22

Retail and Consumer Confidence
14/04/2015 10:37

In the aftermath of a slow Basel World, Leibish Polnauer, President of fancy colored diamond retailer Leibish, blogs about retailers facing tough times. White goods are flooding the market, large online retailers are forcing prices down and Rapaport’s pricing is pushing them even lower. This has led to a vicious circle of prices falling further while suppliers become skittish and sell inventory below or near cost. Leibish wonders which came first, the chicken (Rapaport decreasing prices) or the egg (a weak market). Leibish’s analysis: as opposed to white, the best colored diamonds available are least affected by price reductions, irrespective of the current market.