6 months ago

Jeweller - April Issue 2018


COLOURED DIAMOND REPORT Price agrees with that sentiment. “Everyone in the market is after an Argyle diamond, for love of their land, the beautiful arrays of colours or for pure investment purpose.” Steve Der Bedrossian, CEO of Sams Group, is matter of fact about his pink diamond stock. “A low end pink melee in a light pink colour is still going to cost around AU$1,900 a carat. But for white diamonds, the best, cleanest, small melee white diamond is never going to pass AU$750 a carat,” he explains. THE NEW PRESTIGE, A SEA OF WHITE Once considered exclusive and for the elite, white diamonds have become more accessible to lower ends of the market, which has made them more popular. A wealth of online information has demystified diamonds further. More information means customers are more knowledgeable, and generally know what they want – although the quality of that knowledge may be lacking. Gary Holloway, one of the world’s leading diamond experts and owner of Holloway Diamonds says that more accurately, “consumer confidence” is high. Customers “come in confident of what they want,” he explains with a smile. On top of that, “the white diamond market is saturated,” says Der Bedrossian. “Retailers can only bill them at 5 to 10 per cent markup. They make the money on the ring mount, not the diamond. It’s really cut throat.” Conversely, he says that pink diamonds “are more unique and every stone is individual. There’s less competition and overall I think the retailers can make more margin.” He adds that because of the flooded white market, retailers can still make more margins on the sale of brown and black diamonds, despite the fact that they are cheaper to buy than white diamonds. Brown and black diamonds from Australia also have the upper hand due to their local origin, he says. “If it’s a diamond from Argyle, that’s what sells.” According to Chen, there are many misconceptions that harm the industry. “Most people wrongly believe that diamonds will come out of the ground ELLENDALE DIAMONDS forever. This is far from the reality,” she explains. THE PRICE ADVANTAGE Consumers are a long way from knowing everything about coloured diamonds. Holloway points out that there’s far more variation in the way coloured diamonds are viewed for quality. Bolton agrees: “Customers are trying to use what they know about white diamonds and apply it to colour. There is no finite grading structure for coloured diamonds. Consumers need to know that clarity and symmetry is less important, and that perfection in colour matching may not be possible. Coloured diamonds are cut for colour return.” Holloway states bluntly: “The grading system for coloured diamonds is not very good. It’s quite common to have two identical diamonds, but of a different grade. So I might buy a brown diamond that looks exactly the same as another diamond that has a higher grade, but really, you can’t tell them apart.” Nonetheless, Der Bedrossian says customers who come asking for coloured diamonds will be well aware they have to pay more for them. “When they’ve come for a 1-carat pink diamond, it could be up to AU$1million per stone…believe me they’re going to do their homework,” he says. And with the Argyle mine estimated to close as soon as 2020, he says those prices are on the increase. Shah agrees that there is a huge difference in the price when comparing white and natural pink diamonds, so it’s not Timeless outside. Revolutionary inside. • Timeless design • Fitness tracking • Water resistant* * Certified IP68 water-resistant up to 1.5 meters for up to 30 minutes. E W P 02 9290 2199