1990: Diamond Sales at Lower Rates Remain Unfavorable For De Beers
The Diamond Registry’s Joseph Schlussel was interviewed by Air Canada’s magazine, En Route. The DR appears in the lead article, “The Glitter Merchants,” in both text and photos from a photography session in the Diamond Dealers Club.
And most recently, the Diamond Registry was visited by CNN’s Tony Guida who came to our offices to interviewed Joseph Schlussel. The main question was “how does the lower sales by De Beers affect consumers world-wide and does it mean lower prices to the consumer?” The Answer: If Coca-Cola does not sell all their goods this year, they’re out of luck and they lose money. But if De Beers does not sell all their goods this year, well, they only have to wait until next year. Stockpiling is a positive thing for De Beers, since diamonds are not perishable can be sold for a higher profit once the market improves. It is also useful for the market in general as it prevents a glut or diamond dumping and the consequent depression of diamond prices.
As for the consumer, if he buys now he won’t find a bargain but he may avoid the increase that will come when De Beers does release the goods at a later date. These days, prices for wholesale diamonds are only down in small goods, gems under one half carat. This is true for loose diamonds, but may not be the case for mounted gems where the manufacturer will take a portion of the price.