A positive diamond industry forecast is on the horizon. This is because many diamond wholesalers are reporting an increased amount of sales. In 2014 Mister Harsheel Shah the vice president of sales and marketing at Prijems, a manufacturer of diamonds based out of Los Angeles claims that business has been "slower than normal" in which he attributed to the recent Arctic blast of cold weather that has recently gripped most of the United States. As of late, however, he reported: "an increase in business, putting on ahead of last year's numbers." The owner of Coast Diamond also based out of Los Angeles owner Jay Gilbert explains, "business is warming up with the weather. We expected an increase because the cold weather has slowed business."
Positive Diamond Industry Forecast
The positive diamond industry forecast is coinciding with tax season which is effecting growth. According to Robert Wiener, owner of as busy, March and April less so. Tax season is worse for sales,
"He did mention that SI goods, have been his top sellers, "unless VS goods have a big discount."
Oren Sofer, of Beny Sofer Diamonds based out of New York city sites as a reason for a softening of spring sales, especially in luxury goods. He maintains that is because paying taxes takes precedence overstocking inventory, "the first quarter has been consistent, we are pretty much even with last year. We continue to see the trend of online growing and traditional retail staying flat.
Opposing Viewpoints on the Diamond Industry Forecast
An opposing viewpoint to the positive diamond industry forecast points east. With the recent tensions between the Ukraine and Russia, Saul Goldberg, of William Goldberg Diamond Corporation explains.
"That this has had a negative impact on the diamond industry. Goldberg says, "it's been a bit quieter because of the turmoil going on with Russia."
Noting that Russian buying has declined since the trouble began. President of Fischer Diamonds Inc., a diamond manufacturer in New York City said. If the hotheads in Washington were to invoke serious sanctions on Russian products or put obstacles in place for Russian goods. Then the compliance machinery starts to come into play, adding complications an already complicated business.
It should be noted that not all jewelers and diamond dealers share the same sentiments, Harsheel Shah explained that he was skeptical that geopolitics and eastern Europe would factor into the diamond trade, "people and economies are very Brazilian. And in this day and age of global media, there will always be a disturbance of sorts somewhere within the US or the rest of the world that we have to contend with."
Inventory and the Diamond Industry Forecast
A positive diamond industry forecast suggests that diamonds are rising in value or holding steady in price. "Prices have been stable, no increase for price resistance. And we've had no trouble replacing inventory," said Jay Gilbert when referring to bridal sales. Harsheel Shaw, on the other hand, maintained that prices were only going to increase. He suspects up to 5 to 10%. He explains "pricing has been on a very strong upward trend with emerging markets still picking up where others leave merchandise behind due to their reluctance to pay higher prices."
Robert Wiener also noted that prices were increasing particularly with respect to SI clarity goods and within the color of H-J. He explains "there's plenty of goods available if you're willing to pay the price." Oren Sofer maintained that a considerable amount of diamonds are out of circulation due to the immense waiting periods for diamond certification from the Gemological Institute of America or GIA. Sofer explains "it has caused a strong firming up of prices on the smaller .50 points and less certified diamonds. Noting that you need to fund your manufacturing cycle and have to add an additional two months of cash. The cash is needed to flow funding for the time that your diamond sit idle in GIA.
Diamond Industry Forecast is being affected by supply.
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Diamond Industry Forecast is being affected by supply.