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Financial Turmoil and Our Industry

Sep 26, 2008 12:00 PM   By Martin Rapaport
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Greedy world
Oct 31, 2008 6:55PM    By Ansary
When Martin Rappaport raise the price in Rappaport, dealer did not leave the price as is yet they raised to the new raised price. (keep same discount). Now Rap price list goes down no one willing to lower their selling price. Greed greed greed. Greedy Conglomerate, greedy ......
Most have washed their filthy hands already, only the one live in a made believe world suffer. Retailers are the one who pays dearly now.
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Oct 30, 2008 11:01AM    By NR
Diamond dealers respond drastically to every bit of information and DISINFORMATION, hence a market has been created where emotion rules over logic. Diamonds are valuable only if we allow them to have value. Be strong, be patient, dont dump goods, wait for particular demand for stones and sell slowly at real prices and prices wont collapse. Otherwise listen to everything RAPAPORT reports, make rash decisions, be optimistic one day, then lose all hope the next day, allow him to affect your business, your mood, then liquidate and file for BK!
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Oct 7, 2008 8:02PM    By nimish jhaveri
you nailed it. this is perfectly what is happening in the diamond market. investment demand as an alternative is being considered by many cash rich people.
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European diamond market will be dead
Oct 6, 2008 6:41PM    By Ansary
As the dollars strengthened, suddenly diamonds selling in Euro would become so expensive that will freeze the European market fairly soon.
$1.00 == .65 Euro
$1.00 == .90 Euro
That would be a 30% increases in diamond price in Europe, compounded with the crisis, tell me, who will invest in diamonds?
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Market Segment
Oct 6, 2008 5:38PM    By Sam
Current crisis with concentrated demand have shrinked our profit margins thus, resulting in diminishing of brokers / dealers & even wholesalers (under $3-5mill) unless you have specifc niche. Sightholders have already started going direct (online - consumers) (wholesale - brick & mortar stores with even less than 2 stores) 'Memo' & 'Net Terms' days are over! CASH IS KING!!
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rapaport video
Oct 6, 2008 4:50PM    By concerned diamantaire
completely irrelevant. No more memos? that means no more potential sales in the US !
when will this rapaport nonsense stop : reform of the rough trade in Sierra Leone, auctions that are real flops, commoditization that will not catch on. Where will it stop?
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No concept of market supply and demand
Oct 5, 2008 11:44PM    By Ansary
If we assume that Asian market will carry it through and there is still a lot of money out there, we are transposing America middle class mentality to Asian market with near zero middle class. Money is available but it's all in the hands of a few (top officials only because there are no middle class). They bought because they want to make money from the diamonds hype. When diamonds are no longer considered to be an investments they themselves will become sellers. Large diamonds were being speculated and changed hands from dealer to dealer hoping to make quick bucks. Those who are still holding on are desperate to sell but yet no buyers since Asian speculators stopped buying. In stock trading terms they are bagholders. Diamond tradings will go through a tough time and many will go BK, those who weathers the tough time will shine.
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if the dtc or any other mining company controlls..
Oct 3, 2008 3:18PM    By ashish shah
i think our market can only survive if the dtc or any other diamond mining company com together and control the supply of diamonds then only people will still have faith in diamonds. the manufacturers and the traders of the diamond industry dont have confidence in there product and are afraid of making loss . i think if the manufacturer and the traders are confident in there product , then only the invistors will have confidence in diamonds.
if the rapaport goes down by any chance then we will see a big damage to our industry.
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Buyers are still out there
Oct 3, 2008 12:21PM    By Dinny
I agree with Adamaunt.
There is still a lot of business for those who care to work the trade properly and look after their current customer base. Margins will be tighter and spend will be smaller. But if you stay focused and target your market you will trade through. Those who were in it for the quick bucks while times were good will be squeezed out.
No bad thing.
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No concept of market supply and demand
Oct 3, 2008 5:21AM    By schatz
i think that the comment of Ansary mainly concerns the American and European market.Martin states that the money has moved from the traditional markets but is still there!.
that still does not enter the minds of many in Europe and the U.S.
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get clever or go under...
Oct 2, 2008 10:31AM    By Adamaunt
i agree, but while impulsive purchases of finished goods is waning, there's still the trend of one diamond for every proposal and two bands for every subsequent marriage. the rapid increase in large carat diamond values may move the average price point for consumers, but the volume won't change a whole heck of a lot. There's still plenty of market out there. I welcome this squeeze. Forces the industry to get creative. those who don't will piss and moan and eventually go out of business.
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No concept of market supply and demand
Sep 27, 2008 8:54PM    By Ansary
Martin Rapaport has no concept of supply and demand.
There is hardly any demand at the retail end. NO buyers.
When there is no buyer and plenty of supply, price will go down. Consummers had spent most of the money cashing out from 2nd mortgage. Money is drying up. US citizen lives on ballooned money from ballooning housing market, ballooning stock market, etc.. When everyone realized that his stocks lost all values because of BK, he owes more on his house than it's value. When companies start to layoff the cash flow will be even tighter. Tell me, will they buy diamonds? With what money will they buy it with. When you buy diamonds can you sell it back at a profit or big losts?
Put on your thinking caps!
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