Jeweller - April 2020

Furore as diamond prices fall; Rapaport
Price List suspended
SAMS GROUP
AUSTRALIA
The Rapaport Price List has been suspended for the first time in its history following a member vote.
A revision in the Rapaport Price List,
published on 20 March, prompted
hundreds of sellers to remove their
products from the RapNet trading platform
and vote to suspend the List for the first
time in its history.
RapNet listed prices dropped 5–9 per cent
across most diamond categories.
Rapaport founder and chairman Martin
Rapaport explained that the prices
reflected significant changes in the market
amid the ongoing coronavirus pandemic.
“It is vital that the Rapaport Price List
reflects the realities of the market even
when such realities are not pleasant or
welcome,” he explained.
“We cannot protect the market from price
changes and must maintain the credibility
of our price information.”
He added, “Buyers require and expect
Rapaport to reflect the lower price realities
of the market. We cannot misrepresent
prices for the benefit of sellers, and we
must not mislead buyers.”
The price changes significantly devalued
the inventory of RapNet’s more than
7,000 members, with one describing it as
“thoughtless” and “miscalculated”.
Shortly after the new prices were
published, protesting members created an
Instagram account, @stock_off_rapnet, to
encourage companies to withdraw their
goods from the platform.
At the time of publication, the Instagram
account had more than 2,100 followers and
had published the logos of 700 companies
that had removed their stock from RapNet.
Some announced their defection to rival
trading platforms, such as IDEX, which
publishes real-time pricing information
updated hourly. Its Diamond Index
indicated polished diamond prices fell on
average 2–4 per cent from 1 to 23 March.
Meanwhile, other RapNet members have
requested that the 20 March Rapaport
Price List be recalled and for further Price
Lists to be suspended until 1 May.
Martin Rapaport confirmed the List would
be suspended following a member vote,
in which 72 per cent were in favour. He
called the suspension “an extraordinary
step we are taking as an act of solidarity
with the trade”.
Meanwhile, the World Federation of
Diamond Bourses (WFDB) has announced
it will develop its own online diamond
trading platform for all bourse members.
The platform will be “created with the
needs of WFDB members in mind and
backed by the peace of mind that comes
with knowing that every transaction
will be protected by the WFDB’s
unparalleled and unique arbitration
system,” according to a statement from
the WFDB executive committee.
Ernie Blom, president WFDB, said,
“If there is any silver lining and benefit
to COVID-19, it has taught us that all
diamond bourses should come together,
promote and facilitate the diamond trade
in order for members of every bourse to
trade freely with one another and to feel
safe while doing so.”
While the WFDB platform is being
developed, the Israel Diamond Institute
has opened its Get Diamonds international
trading service to WFDB-affiliated
bourse members.
We cannot
misrepresent
prices for
of sellers,
and we must
not mislead
buyers
Martin Rapaport
Diamond
bourses
should come
together,
promote and
facilitate the
trade in order
for members
... to trade
freely with
one another
Ernie Blom
E pink@samsgroup.com.au
W samsgroup.com.au
P 02 9290 2199