The TradersDiamonds.com Blog

TD Sales Tip – Teach your customers about the real impact of fluorescence on a diamond’s appearance

2010-05-20T06:47:00.000-07:00

95 % of Indian solitaire buyers want a none fluorescence stone. Most of them believe that a fluorescence stone is one which is milky in appearance.

And because their customers are adamant on buying none fluorescence diamonds, most jewellers are also looking for none fluorescence stones.

Can’t blame them can we? After all they have to provide what the customer asks for.

Not really. The blame still lies entirely upon them. In fact, most of them are letting go of a great business opportunity.

They need to take the blame because most of the diamond education in this country has been done by jewellers. And therefore, the jewellers are solely responsible for the fluorescence related education of their customers or the lack thereof.

A few of them are probably not aware of the true affect of fluorescence. But all in all they have simply decided to take the safest route by deciding to just stick to none fluorescence stones and not bother with fluorescence diamonds at all. As if fluorescence stones are from some other mysterious world and should be avoided at all possible costs.

Jewellers are not interested because customers don’t want it. And customers don’t want it because jewellers are not trying to sell them. This intertwining has created a perfect vicious circle
which has ensured that nobody wants anything to do with fluorescence diamonds.

And now for some hard facts

Fact 1 – A thorough study was conducted by GIA in 1997 to test the affect of fluorescence on the appearance of diamonds. This results of this study suggested that fluorescence makes very little difference.

Fact 2 – Fluorescence stones are rarer to find and are priced lower than none fluorescence stones.

Thanks to facts 1 and 2, there is clearly a business opportunity if a jeweller can convince his customers to buy fluorescence diamonds. He will be able to buy and sell for lower prices. And at the same time, he will not have to worry about competition as none of the other jewellers will be capable of selling fluorescence diamonds.

He will also need a source which can offer him an inventory of fluorescence diamonds.

With TradersDiamonds, you will have a sizable inventory of fluorescence diamonds. We are not prejudiced against fluorescence stones. We have always tried to educate jewellers about fluorescence diamonds.

And now we will help you convince your customers as well. For this we will rely upon the findings of the GIA study. We have a copy of the study report and we are willing to share it with anyone who wants a copy. We suggest you read through it. Having done that you will be in a better position to explain the affect of fluorescence on the appearance of diamonds to your customers. If required you can even share the report with your customers. GIA is the world’s foremost authority on diamonds and we are confident that customers will trust their assessment.

Armed with the knowledge to sell fluorescence diamonds and an inventory of such stones from TradersDiamonds, you will soon start to sell fluorescence diamonds on a regular basis.

The opportunity is there. Some of our customers are already benefitting from the pricing advantage and selling fluorescence stones regularly.

You can do the same.

How to use fluorescence to help identify a synthetic diamond

2009-10-06T23:53:00.000-07:00

The natural diamond is on the left and the synthetically treated one on the right. Check out the distinct difference in fluorescence.

A natural diamond that fluoresces will typically display a blue fluorescence to long-wave ultraviolet radiation and weaker, often yellow fluorescence to short-wave UV. An HPHT-grown, synthetic diamond will usually fluoresce yellow to yellowish green to both long- and short-wave UV, with a brighter reaction to short-wave UV. The synthetic diamonds' different crystal growth structures show up as a distinctive cross-shaped pattern to both long- and short-wave UV. Check out the images above to understand the difference.

Courtesy GIA

TradersDiamonds gets its first sale from Facebook

2009-08-28T23:58:00.000-07:00

Facebook was a social networking site they said.

Facebook wasn’t a place where you could target jewellers or other members of the diamond trade they said.

We still kept trying.

We kept getting visitors, inquiries and fans.

That is all that you will get they said.

But then we got a sale and a decently big one at that.

A four carat pair.

The jeweller also happened to be our first customer from that particular city.

Facebook can generate sales and help you reach out to customers from all nooks of the country and abroad.

There is more to it than just social networking.

Go Facebook.

GIA to offer Sealed Packing for Diamonds

2009-08-26T23:03:00.000-07:00

A Diamond Sealing Service is now available for D-to-Z diamonds that carry a GIA Diamond Grading Report or a GIA Diamond Dossier®, and colored diamonds holding a GIA Colored Diamond Grading Report.

The new service seals the diamond with its key grading information in a credit card sized, tamper-resistant package that keeps the stone, its report number and primary gemological details (report date, shape and the Four Cs) in a secure, easy-to-display packet.

“GIA has been vigorously offering a wider array of services to accommodate the needs of its many different customers throughout the industry and the general public,” said GIA President and CEO Donna Baker in announcing the Sealing Service at the IIJS Show in Mumbai earlier this month. “In particular, we are interested in offering services that promote worldwide industry standards and reinforce consumer confidence.”

The sealed package contains multiple security features, including the GIA hologram, which is proof that the diamond has been graded by GIA and that the information in it matches the stone. These features will help prevent attempts to misrepresent the item and its report.

The Sealing Service can be ordered at the time of grading for a fee of US$9 per stone. Diamonds can also be resubmitted for the Sealing Service for the same charge, with an additional grading fee applied. The service can be requested at all GIA Laboratory or take-in locations worldwide, as well as online through GIA’s client portal, “My Laboratory.”

News courtesy GIA website.

Our thoughts on the new service.

This is definitely another boost for educated buying and selling in India. Checking the laser inscription on the girdle wasn't a possible thing to do for every customer. Many customers looking for seal-packed stones weren't looking at GIA stones at all. It will also be easier to re-sell GIA sealed stones. Great news for sure.

Looking back at IIJS 2009

2009-08-26T00:46:00.000-07:00

The IIJS has been steadily growing in prominence over the years becoming India’s largest, Asia’s 2nd largest and World’s 5th largest show. So how did the 2009 event fare and what could be its implications on the diamond industry.

One of the big winners at the show was the jewellery products, which was expected considering that the marriage and festival seasons, are just around the corner. Keeping this in mind, both, international and national vendors displayed a lot of very innovative designs. There were a wide range of latest international designs on display and these stalls saw a lot of interest and action.

The other section which attracted buyers in huge numbers was the machinery section, where customers flocked to see the latest technological advancements related to the gem and jewellery industry. This was a clear reflection of the fact that Indian manufacturers and retailers want to attain world-class standards and are willing to make the necessary up gradations in equipments required to do so.

As for loose diamonds, the major demand was for the goods which have become extremely scarce and expensive locally, namely the H/I/J colours in VVS and VS clarities. There was also a significant demand for 5 to 10 carat stones which showed that India has a healthy demand and is increasingly developing a penchant for large stones.

However, as has always been the case the Indian buyers were extremely price conscious and looking for prices that weren’t available locally. As a result, transactions were few in number. The problem was compounded by the fact that most Indian buyers were looking for rupee prices. The perennial issue of unnecessary import taxes also played a role in reducing the volume of actual business.

While there were enough deterrents to business and a few international vendors complained that you can do business in India only if you are willing to compromise your profit margins, there was no shortage of participants who were impressed by the humongous potential of the Indian market.

There was a common consensus that India probably happens to be only market where local consumer demand is still strong and largely unaffected by the global recession. Profits might be thin and conditions difficult but if you want to increase your market share, you cannot ignore India and you have to be active in this market.

The event further raised the stock of the IIJS show and of the Indian diamond market.

India has long established itself as the largest exporter of cut and polished stones.

But now it is coming into its own as a massive demand creator thanks to a population of 1.3 billion and a surging middle class with substantial disposable income and growing appreciation and love for diamonds.

IIJS 2009 validated this and things will only get better from here on.

Israeli Diamond industry going the e-commerce route in a big way - how do Indian companies compare

2009-08-04T06:25:00.000-07:00

In an interesting development, which further reinforces the importance of the role the internet has to play in the modern diamond trade, the Israel Diamond Institute (IDI) group of companies is helping the Israeli diamond industry utilize the power of the World Wide Web to full advantage through their “Together Works” program.

As part of this program, the Israeli companies are being given free professional consultation on everything – right from website development and online marketing tools to creating web content and drafting terms and conditions.

The response to this program has been tremendous and a large number of companies are participating in this. Clearly they realize that an online business helps them to reach out to far more customers at a substantially lower cost.

While the internet revolution was expected sooner or later; thanks to the precedent set by American companies, the process of change was hastened by the economic crisis as companies looked out for ways to become leaner and more cost effective.

The American diamond industry already has a substantial e-commerce footprint and now Israel is taking massive strides to get there. Where does the Indian industry stand in the middle of all this? India is the world’s largest exporter of cut and polished stones but what about our position in the online stakes.

India is not doing too badly either. We don’t have an IDI to lend a helping hand but thanks to being the IT capital of the world, a lot of Indian companies have set up their websites. Most of these are fairly basic but a few have advanced functionality too.

The biggest challenge however is not about technological capability. It’s about wholeheartedly adopting the online way – truly believing in the advantages of an e-commerce business and molding other business practices accordingly. We often talk about changing consumer mindsets. The bigger challenge is for the trade to change their mindset.

Once we can do that it will just be a matter of time before Indian diamond companies rule the e-commerce business as well.

Diamond Selling Tips – How jewellers can use SMS updates of Hot Diamond Deals

2009-07-24T04:44:00.000-07:00

The response to the SMS updates of HOT DIAMOND DEALS has been pretty encouraging thus far. We have sold a few stones listed as the deal for the day and there have been others who have signed up to receive the updates. Someone even called to inquire for the deal and ended up buying something else.

But what warms our cockles more than anything else is the discovery that some jewellers have started forwarding the SMS updates to their regular customers on an ongoing basis and in the process they have managed to create new demand for themselves.

Thanks to the slow market demand, jewellers are not too keen on buying for stock, irrespective of the attractive prices of the Hot Diamond Deals. The only way a sale can happen is if the final decision maker, the end customer, finds the offer attractive and decides to buy.

The SMS process ensures that end customers – people who are the real decision makers and are interested in good deals, come to know about a good offer immediately. They can take a call quickly and the jeweller can go ahead and buy the diamond.

This is exactly what happened in most of the cases where the diamond in the Hot Diamond Deal got sold.

The jeweller provides an additional service and customers have been responsive.

What one can do, everyone else can do.

Some of the jewellers have shown the way – effectively starting an SMS deal updates for their set of customer.

It’s time for other jewellers to give it a shot.

Interpreting export import numbers for rough and cut and polished diamonds - what they say about demand and supply in the market

2009-07-16T22:45:00.000-07:00

These are the provisional export and import figures received from the Gems and Jewellery Export Promotion Council (GJEPC) for the month June 2009.

Import of rough diamonds

India imported rough diamonds worth Rs 4224 crores in June 2009 as compared to Rs 7483 crores last year in June, declining by nearly 44 percent.

This clearly corroborates what we have known all along, i.e. fewer manufacturers are buying rough and production of fresh goods has taken a hit which has resulted in a shortage of diamonds in the market. Also inventory levels for rough has come down drastically and manufacturers have almost exhausted their old stocks.

Import of cut and polished diamonds

Cut & Polished Diamonds worth Rs 3068 crores were imported in June 2009, as compared to Rs 2909 crores in June 2008, thus showing a growth of 5.44 percent.

This is surprising. If we combine this with the rough import numbers then it only means one thing; that thanks to the shortage of domestic goods, people have stepped up imports to meet the domestic requirements. Imports are usually expensive but in the current scenario where rough is very expensive, they are probably a better option.

Export of cut and polished diamonds

Total export of cut and polished diamonds stood at Rs 5061 crores in June 2009, while in June 2008 it was Rs 5248 crores. Cut and Polished diamonds exports declined by almost 4 percent.
We all know that the overseas markets are reeling and that is what explains the drop in cut and polished exports.

This is what the market watchers at TradersDiamonds feel about these export import numbers. What is your take on them?

Numbers courtesy GJEPC website

Now get updates on Hot Diamond Deals through SMS...sign up today

2009-07-13T05:36:00.000-07:00

We are pleased to launch the SMS version of our Hot Diamond Deals. Until now, information on these deals was available on the TradersDiamonds Website, Blog, Twitter page and Facebook page. The response has been good and jewellers have benfitted from these deals. But most of our users are not online on a regular basis and we have been getting requests to offer this service through SMS. We are now ready to roll.

Sender's Details

The SMS will come to you from the sender TD.COM .

Responding to the SMS Update

We have a two way SMS system which will allow you to respond to the updates via an SMS itself.

How to send us an SMS?

You can send us an SMS by typing TDCOM and sending it to +919848356765.

So, if you want the certificate copy of the Hot Diamond Deal no 5 and your email id is abc@yahoo.com, you can send a request for the same by sending the following SMS to +919848356765.

TDCOM send certificate copy of deal no 5 to abc@yahoo.com

This makes it easy and convenient for you to contact us, in case you are interested in the diamond being offered as the Hot Diamond Deal. In addition, you can continue to call us at 044-42935016/17 or send us an email at enquiry@tradersdiamonds.com for more information about the diamond.

In case you are not on the SMS list and want to subscribe to the service, just send us an email with your full details ( Name, Business Name, E-Mail , Mobile Number, Location) to service@tradersdiamonds.com.

More Happy Diamond Buying

Now understand diamonds better - GIA to provide more detailed information on fluorescence of diamonds

2009-07-09T01:25:00.000-07:00

In an effort to help educate the public about the common, but little understood, phenomenon of ultraviolet (UV) fluorescence in diamonds, the Gemmological Institute of America (GIA) will include, effective immediately, additional information describing fluorescence and its properties in every GIA Diamond Grading Report and Diamond Dossier® that carries a diamond fluorescence description of medium or stronger. A separate four-color insert addresses the most frequently asked questions about fluorescence, explains its properties in easy-to-understand terms, and includes comparison images of diamonds in both natural and UV light to illustrate varying intensities of fluorescence.

“Some diamonds show fluorescence and some don’t,” said Thomas M. Moses, GIA’s senior vice president of laboratory and research. “Fluorescence is the emission of visible light by a diamond when it is stimulated by invisible UV rays. It is a common characteristic of diamonds. The diamond simply glows under the UV lights, usually a blue color, which most often stops when the energy source causing it is removed.”

For more than 50 years, GIA has indicated the presence of diamond fluorescence on its diamond grading reports, but described it on the report as an identification characteristic only — not a grade, Moses said. The five terms GIA uses to classify the intensity of a stone's fluorescence are: none, faint, medium, strong, and very strong.

“This insert will help the public better understand diamonds in general, which gives them more confidence and knowledge when making a decision about a diamond,” he said.

The above is from a GIA press release. The fluorescence parameter and its impact on the quality of diamonds is generally not very well understood; and not just by customers but by jewellers too. The GIA move will do a world of good in educating everyone about the same.

More glory to GIA and more power to educated and informed diamond selling and buying!!!

The Jewellery Industry and the 2009 Union Budget

2009-07-08T03:16:00.000-07:00

The following measures were announced by the Finance Minister, Mr. Pranab Mukherjee as part of the 2009 Union Budget. On behalf of the industry, we thank the Gem and Jewellery Export Promotion Council (GJEPC) whose efforts brought about these changes.

Extension of interest subvention of 2 percent on rupee export credit beyond the current deadline of September 30, 2009 to March 31, 2010
Abolition of Excise Duty on Branded Jewellery
Abolition of Fringe Benefit Tax
Exemption of Service Tax on services received by exporters from goods transport agents and commission agents, where the liability to pay service tax is ab initio on the exporter. No need for the exporter to first pay the tax and later claim refund.
Service Tax exemption for other services received by exporters would be operated through the existing refund mechanism based on self-certification of the documents where such refund is below 0.25 percent of FOB value and certification of documents by a Chartered Accountant for value of refund exceeding the above limit.
Service Tax exemption to all Export promotion Council’s and FIEO on the membership and other fees collected by them till March 31, 2010.
Extension of sun-set clauses for the tax holiday (deduction in respect of export profits available under sections 10A and 10B of the Income-tax Act) by one more year i.e. for the financial year 2010-11.
Increase in customs import duty on Gold Bars from INR 100/10 gm to INR 200/10 gm
Increase in customs import duty on other forms of gold like Tola Bars, medallions and coins excluding jewellery from INR 250/10 gm to INR 500/10 gm
Increase in customs import duty on silver excluding jewellery from INR 500/ kg to INR 1,000/ kg

Courtsey GJEPC

TradersDiamonds Business Update – We just sold our first 5 carat diamond

2009-07-07T00:59:00.000-07:00

We have just sold our first 5 carat diamond. Being the only online B2B business of our kind, we can safely say, that this is the first 5 carat diamond sold online to a jeweller in India.

This stone was part of a 10 carat pair. The jeweller had been looking for a matching stone for some time. Finally his search ended at www.TradersDiamonds.com.

This is further proof that you can almost always find the diamond that you are looking for, at TradersDiamonds.com, thanks to the consolidated inventory of more than 4000 vendors from across the world.

One jeweller has benefitted from the TradersDiamonds advantage to sell a 10 carat pair. You can do the same.

Domestic consumption of diamonds double in last 3 months - time for gold jewellers to make the most of India's growing growing craving for diamonds

2009-06-29T21:16:00.000-07:00

The Economic Times reports that India’s domestic diamond consumption has doubled from 2% of the total production to 4 % of the value in the course of the last 3 months.

The article attributes this growth spurt to the crash in diamond prices owing to the global economic recession. As a result of the crash, a lot of manufacturers resorted to desperation selling, leading to an almost 15% drop in prices. But that has been followed by an increase in prices owing to a severe shortage of goods. This shortage was caused by the lack of production (owing to unstable pricing) and high rough prices. The growth in consumption, therefore, has happened in spite of this price increase and that makes the increase in demand an even bigger story – for everyone involved in the diamond business in India.

The robust growth is something that every jeweller in India needs to take notice of. The ones who are already doing well in solitaires can pat themselves on the back; for being well positioned to harness the growth, while the ones who are not dealing in diamonds might as well get started before the boom passes them by.

I say solitaires and not just diamond jewellery because the report also mentions that there has been a significant increase in demand for expensive diamonds which are more than 1 carat in size. Diamonds are no longer just an embellishment for the gold jewellery. More and more customers are looking to buy solitaires and big ones too.

So what does it take for a gold jeweller to become a diamond jeweller too?

It takes an inventory of loose diamonds, solitaire designs, a display of pieces, a few artisans who are trained in solitaire setting and a sales force with good knowledge of diamonds.

A gold jeweller can get all of these under one roof at TradersDiamonds without having to spend too much.

With a crest of strong consumer demand to ride and a readymade solitaire solution on offer, has there ever been a better time to be in the business of selling diamond solitaires.

TradersDiamonds launches Solitaire Services for Jewellers - a first of its kind, full fledged white label solution to run a solitaire business

2009-06-25T21:54:00.000-07:00

TradersDiamonds aspires to be a one stop shop for all solitaire related products and services for jewellers. We took our first step towards that goal by offering jewellers a certified loose diamond buying service. The second step was to start mounting the diamonds that jewellers were buying from us. We are now ready to take a much bigger step forward; one which truly reflects the possibilities that we envisage in the solitaire jewellery space for jewellers. This step is the launch of the Solitaire Services for Jewellers - a business model which combines the advantages of an online diamond buying model with the benefits that are offered by a physical retail store.

Full of the new service are given below and on our website. If you need more information about it, then either call us at 044-42935016/17 or write to us at enquiry@tradersdiamonds.com

The TradersDiamonds Solitaire Services provides a full service solitaire solution to jewellers. It takes care of all the aspects of solitaire design, diamond procurement, manufacturing, training and retail. It helps jewellers set up a diamond solitaire business from scratch and with very little investment. It can also be used by existing solitaire retailers to enhance their solitaire offering and reduce the costs involved in running that business.

What do you get from the TradersDiamonds Solitaire Services?

Solitaire Designs - TradersDiamonds has an in-house design team which will provide you with solitaire designs. If you have a design in mind and want something similar, then the design team can also make a customized design for you.

Solitaire Mocks for display - TradersDiamonds will provide you life-like mocks of their solitaire designs to be used for customer display. These mocks will be low cost and made from high-quality CZ. Thus you can get a large display of solitaire designs without having to invest in expensive diamonds

Loose Diamonds - Once a customer selects a solitaire design, you can use TradersDiamonds.com to find and buy whatever kind of diamond the customer wants for the solitaire. You can also order loose stones without the mounts.

Diamond Setting - TradersDiamonds will set the diamond that you have ordered on the solitaire mount selected by your customer. We have our own solitaire manufacturing facility where the diamonds are set by expert artisans.

Diamond Advisory Services - TradersDiamonds has a team of GIA trained gemmologists who are available to answer any diamond related questions that you might have. These might pertain to understanding the various qualities of diamonds or making a judgement on what stone to buy. Diamonds are a highly educated purchase and this service ensures that you and your team are always well - equipped to handle any queries from your customers.

Sales and Product Training - TradersDiamonds also provides sales, product and diamond training to your sales staff.

Grading Camp - TradersDiamonds will also help you organize grading camps and seminars.

Product Range

Rings
Pendants
Earrings
Bangles

How does it work?

Setting up
You just need two things to start off. A computer with an internet connection and a set of solitaire mocks from TradersDiamonds.

www.tradersdiamonds.com gives you a limitless diamond inventory - you can offer multiple options for any diamond requirement that your customers have.

Customers can try the mocks to get a look and feel of the designs. They can also appreciate the quality of manufacturing and the setting.

In addition to the designs on display, you have catalogues to show more designs to the customers. For any customer handling issues you can seek the help of our diamond advisors

TradersDiamonds can also provide sales and product training to your sales staff.

Ordering
Order for the mount and the diamond can be directly placed with TradersDiamonds, You can just call our customer service team to do so.

Delivery
Products are delivered in 7 business days at the store. Bangles take 15 business days for delivery

Pricing and Financials
This is a white label solution. We give you the cost price for the diamonds and the mounts. You can mark it up by any number to sell to your customers.

The cost of a set of 40 mounts for display is Rs 4, 00,000. These are made in 18K gold. At any point in time if you want stop, you can sell the mounts back to us at 75% of the original value.

Payment terms
Initial business will be on cash terms. We will explore credit facility after a few transactions.

TradersDiamonds Solitaire Services as compared to a traditional set-up

They have to create designs - You don't need to create designs
They have a minimum diamond inventory - You don't need to have a diamond inventory
They have manufacturing team - You don't need to have a manufacturing set up for mounts or diamond setting - automated manufacturing
Your cost of display is extremely low.
Minimum inventory for the solitaires or high turnaround time
Untrained staff - trained staff and expert advice a phone call away
Can work on far lower margins as compared to a regular store

Advantage of TradersDiamonds Solitaire Services

This unique combination of offline and online creates the following advantages for a jeweller using the TradersDiamonds Solitaire Service

Low investment in ( and therefore high ROI)

Diamond inventory
Designs
Display
Manufacturing set up

Range of offering

90,000 plus diamond inventory
Solitaire designs
International quality manufacturing
Sales and product expertise

Blue Diamonds continue to bolster diamond auctions worldwide

2009-06-14T22:15:00.000-07:00

After the record-breaking sale of a 7.03-carat flawless vivid-blue diamond for 9.49 million US Dollars (the highest price per carat for any gemstone sold at an auction) by Sotheby's last month, rivals Christies also joined the action with a 6.29-carat fancy-intense-blue stone going for 3.6 million US Dollars at their spring jewellery sale in New York.

The pear-shaped stone was bought by an anonymous buyer 565,000 US Dollars per carat.

Other stones grabbing the headlines were a 46.72-carat modified-rectangular-cut fancy yellow diamond with SI1 clarity, purchased by the U.S. trade for 602,500 US Dollars; a 10.01-carat pear-shaped internally flawless F-colour diamond, which went to a private U.S. buyer for 458,500 US Dollars; and a diamond necklace by billionaire diamantaire Laurence Graff, which was purchased by a private buyer from the Middle East for 410,500 US Dollars.

And the auction wasn’t just limited to a few big deals. The "New York Jewels" auction turned in a solid performance selling 91 percent by lot and 86 percent by volume. Coming on the heels of good sales in Hong Kong and London, the show in New York reaffirmed that the jewellery market is regaining its strength, which in turn clearly reflects steady progress for the economy in getting back to good health.

This was corroborated by Rahul Kadakia, Christie’s head of jewellery, who described the room as "buzzing" with excitement. And he had reason to be pleased. After all, Christies ended their Spring Jewellery season with dominant market share of 65 percent in New York and 60 percent worldwide.

News from the JCK show and how it bodes for the Diamond Industry overall

2009-06-06T03:55:00.000-07:00

The JCK Show is the Diamond Industry’s premier buying event. It gives the industry players an opportunity to check out and buy products from across the world, observe the latest trends and hobnob with one another. The 2009 show was held at Las Vegas, and coming at a time when the industry is going through turbulent times, the show was the hottest topic of discussion amongst anyone even remotely connected with diamond industry.

Mithun Sacheti, a graduate jeweller gemmologist from GIA and an avid diamond industry watcher was at the JCK Show. He shared with us on how things turned out at the show and gave us insights on how the overall performance will impact industry dynamics in the near future.

Here are the important excerpts of our discussion

Demand, Supply and Prices

In rounds the strongest demand was for 5 carat and above D-IF goods. There is also massive demand for 10 carat goods but they have become extremely scarce and as a results price have shot up to price premium levels. In fancies, pears in 8 carats and above had the highest demand. But thanks to the demand, even these goods are facing a major shortage now.

In pointers, the prices of triple excellent goods are going through the roof – they have gone up by almost 20% in the last one month

Big Winners

In addition to the suppliers who had diamonds to offer at high discounts, the others who had a successful show were people with rare high quality goods. There was also a good market for unique products.

Big Losers

While unique and rare goods were selling well, generic jewellery suffered badly. The major reason for this was price – there was huge gulf in what buyers were willing to pay and what sellers were offering and hence very few deals materialized.

Global Trend

Asia continues to drive global demand in a big way. Mumbai and Hong Kong are generating most of the business worldwide. The Middle-east is also contributing – they have massive requirements for diamonds in very good and good cuts.

Overall the show was a moderate success and things are looking up. The feel good factor is slowly coming back and both buyers and suppliers are optimistic about the future outlook. Hopefully things should be back to normal fairly soon.

TradersDiamonds Business Update – We are selling a large number of matching diamond pairs

2009-05-19T03:26:00.000-07:00

TradersDiamonds is close to 5 months old now and a quick analysis of the diamonds that we have sold so far confirms one of our long held beliefs – that when it comes to buying a matching pair of diamonds, TradersDiamonds offers a huge advantage.

Finding a matching pair is a complicated task. Other then the size, colour and clarity, one also needs to match the table, depth and measurements of the two stones. At the same time you are also trying to get the best possible price. So there are a number of optimization and matching exercise which are in play at the same time.

A jeweller has two options. Either he gets a pair from one manufacturer or tries making a pair from different manufacturers. A manufacturer charges a premium when he offers a pre-matched pair. Also by buying a pre-matched pair you are limiting your options. There are thousands of single stones out there which could be combined to make a better pair and come for a better price. It’s like deciding to book a return journey from the same airline and not exploring option with different airlines.

On the other hand the task of trying to match single stones from different vendors is extremely cumbersome. You start by taking the lowest priced stone from the list of one vendor. Now you need to go through all the other lists which you have, trying to find a diamond which matches this one well on all the parameters. As you need to check for around 7-8 parameters, you will constantly need to keep flipping from one list to the other to verify the details. Suppose you can’t find a pair for the lowest priced stone, which happens quite often, you need to repeat the entire process with the next best stone. For a human being this is extremely time- taking. Throughout the world such optimization exercises have been automated and that is what TradersDiamonds also does for you.

TradersDiamonds puts all the diamonds from different vendors in the same table. It has stones from around 4000 manufacturers, including international ones, which is more than what any trader normally has. It also gives you the option of sorting this table using multiple parameters at the same time. (Check out the ‘how to use search’ on the website to learn how to use multiple sort). Thanks to all this, matching diamonds becomes far easier than any manual process. You get a well matched pair at the best possible price.

And now our sales numbers are proving that this advantage in making matching pairs is not just a theoretical argument. Many of the jewellers, who have started buying from us, first became convinced about our value proposition, when we offered them a superbly matched pair at a great price. It’s quickly becoming one of our strongest selling pitches. In terms of actual figures, more than half the business has come from the sale of matching pairs, which is well above what anyone would have expected.

So in case you are still not convinced about TradersDiamonds, try using it the next time you need to find a matching pair. Compare the pair and the effort involved in finding it, with what you would have done otherwise. We are confident that you will soon become a proponent of buying diamonds online.

The TradersDiamonds Market Update – 11/05/2009

2009-05-06T04:17:00.000-07:00

GIA and GJEPC sign MOU to promote gemological education

In a wonderful development, The Gemological Institute of America (GIA) and the Gem and Jewellery Export Council (GJEPC) have decided to join hands to promote greater gemological education throughout India. They have signed a Memorandum of Understanding (MOU) to this effect and plan to build a solid foundation to raise the overall gemological education standards in India. They also believe that this effort will help to develop and retain talent in the industry.

The two bodies will work together to develop course content that will set standards and fulfill the education requirements for the Indian gem and jewllery industry. GIA India will introduce and conduct gemology courses at all GJEPC institutes, using well trained faculty able to speak English, Hindi and Gujarati. In addition GIA will admit GJEPC graduates to GIA for higher studies. In return, the GJEPC will actively promote the programmes, obtain the necessary clearances and permission to conduct the courses whenever required.

We at TradersDiamonds.com are extremely pleased with this development. We take every opportunity to educate our customers and have been striving for more informed diamond buying and selling in India. With GIA and GJEPC taking it upon themselves to do the same, our job became so much easier.

News from the Markets

New York

The New York market is picking up slowly. The orders are flowing in at a steady rate but demands are constantly rising. Overall, the demand is far slower than the rest of the world market

The best demand is in the Carat sizes 1.50 -2.00cts in better clarity. Demand for Fancy Cuts in 0.50 carats and above is also increasing.

Antwerp

The Belgium Diamond market is showing great improvement at the trading level. Traders are preferring to conduct more cash transactions because they are very concerned about their ability to collect their payments in the current market environment. But demand is rising steadily and the mood is positive

Demand has improved across the board for stones up to 3.00 carats.

Mumbai

Compared to recent weeks trading levels have shown a large improvement. Demand has been created by local requirements as well by the presence of overseas buyers. But the severe scarcity of goods has resulted in very few purchases.

The best demand is for rounds ranging from 1.00-2.00 carats in G-J colour and VS clarity.

TradersDiamonds ‘Best Diamond Buys’ –bringing you the best diamond deals in the market

2009-04-23T03:08:00.000-07:00

At TradersDiamonds.com, we have a dedicated diamond buying team which is constantly looking out for diamonds which are being offered at the best discounts. Every week this team puts together a list of these diamonds and sends it out to our customers. Although we do not encourage our customers to stock diamonds, it is never a bad idea to buy one for your inventory if you are getting it at a great price.

And that is exactly what most jewellers seem to be thinking, if the response to this best buy list is anything to go by. It seems pretty clear that our customers have found this list to be very useful and therefore, this exercise of finding the best diamond deals and sending it to customers has been well worth it. This list has been especially useful in the current market scenario, where diamonds prices have been continuously rising and diamonds at good discounts have been harder to come by.

A lot of jewellers have passed on this list to their regular big –ticket buyers – people who are always looking for a great diamond deal. This way they have also been able to offer an extra service to their customer, without having to expend any effort.

Preparing a list like this is not an easy task. This because Diamonds are difficult to standardize and do not have regular price list like most other commodities in the market. So it requires someone to almost comb through the entire lot of diamonds available in the market. This task is usually impossible to do for the sheer physical effort involved. But thanks to an inventory of 90,000 diamonds from 4,000 manufacturers, TradersDiamonds manages to do the impossible.

We are also working closely with manufacturers to make some special low -priced diamond inventory available to our customers. One such effort was the list of GIA certified Triple Excellent diamonds that we had sent out to our customers last month. Every stone on this list was priced at -42 % back or better. As expected the response to this mailer was great. We will be bringing more such lists to you very soon.

If you want to receive the TradersDiamonds ‘Best Diamond Buys’ list, then you can either go and register on www.TradersDiamonds.com or send us a mail at avnish@tradersdiamonds.com

Happy Diamond Buying

The TradersDiamonds Market Update – 13/04/2009

2009-04-13T03:56:00.000-07:00

Market Updates are going to be a regular feature on the blog. We keep track of all the international happenings that impact the diamond trade and closely monitor trade activity across major markets. Doing this is extremely important for us as we are involved in a truly global business. Moreover, having a brokerage model, which works on thin margins, makes it imperative that we are always on our toes and react quickly to market changes. We believe that sharing the power of this information with our customers will help them gain a competitive advantage in the market place. So here we are with our first update. We are hoping to create a forum to facilitate two-way exchange of information and hence request your active involvement.

Basel World 2009

We will start with a review of BASELWORLD, which is the biggest luxury goods trade show in the world. The 2009 event saw 1,952 exhibitors from 45 countries showcasing their latest products and innovations. The eight day event which came to a close on 2nd of April once again reaffirmed itself as the leading global business platform for the watch and jewellery industry and gave a fresh lease of life to the various exhibitors.

Expectations were really low for the show this year in wake of the global economic recession. However, the show surpassed all those mediocre expectations. The event was bustling with activity and there was active participation from both buyers and sellers. Although, sales orders dropped down from last year, they were still far higher than waht most participants were expecting. Another measure fo the success was the significant increase in the number of international visitors.

The unexpected turnout and enthusiastic response has raised the morale of the entire jewellery industry. There is new hope and the show participants are forecasting a much better second half of the year. BASELWORLD truly managed to live up to its name once again.

The next year’s event will be held in Basel between 18 to 25th March.

News from the Markets

New York

The New York Market is slowly and steadily picking up. The unexpected success of the Basel show has created an optimistic outlook in the market. Interest in goods has increased and the trade is hopeful that a strong second and third quarter of 2009 will make up for the low numbers in the early part fo the year.

The biggest movement has ben seen for 0.05 to 0.15 cts, whose demand has really picked up. The other categories where demand has improved are the 0.50+ carat fancy cuts. The short supply for Carat sizes and larger in G-K / SI+ has helped in stabilizing the prices for these articles.

Antwerp

Trading has increased to decent levels at the Belgium diamond exchange. This market has also benefited from the positive energy of the Basel Show. Rough buyers who were absent for a long time have started making inquiries again although not much is happening in terms of actual sales as rough prices are still very high. In terms of demand, it is slowly picking itslef up across the board , with no category shoing significant movement.

Mumbai

A rise in local demand has put some life into the maket. So much so that some manufactures are contemplating going in for new production. A few overseas buyers have started making inquiries. Trade experts feel that these are optimistic signs for the market. The highest demand is for round in small parcels of 0.005-0.15 cts, F-J / SI and 80 pointers in F-J / VVS.

We hope that you found the update useful. We will continue to rpovide you with similar news and updates from around the World. Suggestions are welcome to make the update more informative. If you have any questions about diamonds or the diamond trade, then please feel free to ask us.

Thanks

The TradersDiamonds Team

Introducing TradersDiamonds.com.

2009-04-01T23:34:00.000-07:00

TradersDiamonds.com is the second e-commerce website from CaratLane Trading Pvt Ltd. This comes 8 months after the launch of CaratLane.com, which was India’s first consumer website dealing in loose diamonds and diamond jewellery. The consumer business is up and running and we have managed to change the diamond buying ways of many Indians and some foreigners too. With TradersDiamonds.com, we now plan to change how the diamond trade - the jewellers, brokers and wholesalers go about the business of procuring loose diamonds.

Today, trade members work directly or indirectly with a handful of diamond manufacturers. The diamond options for the jeweller (who is the end customer in the trade business) are limited to the combined inventory of these manufacturers. His price depends on the number of intermediaries between him and the diamond manufacturer. Usually, there are at least two middle-men which results in two more levels of price mark-ups. Procurement involves a lot of back and forth between the buyer and his different sellers before the order can be placed with one of them. This task is cumbersome and time taking.

Life can change for the jeweller with TradersDiamonds.com. He will now have an easy-to-use website where he can simultaneously view the inventory of more than 4000 manufacturers. And that is not all. He can go ahead and place an order and TradersDiamonds will deliver the diamond at his doorstep. The advantages are manifold – more choice, better prices, simple and convenient selection and buying processes and more.

TradersDiamonds.com is restricted to members of the trade only. This is important because the diamond prices on TradersDiamonds.com are trade level prices and far lower than consumer market prices. By restricting access to regular consumer, TradersDiamonds.com ensures that a price differential is maintained between traders’ price and end consumer’s price. It is therefore possible for a trader to buy from TradersDiamonds and compete with even CaratLane.com for a consumer sale. Restriction to trade is ensured by providing user account based access. A verification process confirms whether the potential member belongs to the diamond trade or not.

We have been servicing trade requests for some time now. This was largely done through email and over the phone. The surge in trade enquiries validated our long-held belief that we had a system based on our network of over 4000 manufacturers which could be beneficial not just for regular consumers but for trade members as well. This lead to the conceptualization and subsequent creation of TradersDiamonds.com.

Until now, the benefits had largely been about giving traders a larger choice and better prices. But still the traders needed to come back to us frequently. A consumer requirement involves optimization of various parameters to give the best value for the money spent. This optimization process is iterative and hence the traders kept coming back to us time and again as they tried to find the stone with the best balance of all the parameters. This process was extremely cumbersome. Sometimes the inability to quickly respond to a requirement is the reason for losing the sale.

TradersDiamonds.com will take care of this problem and add to the overall value proposition that we offer. The website empowers the trader with a simple tool which will allow him to instantaneously compare all the available options and respond to customer requirements in almost no time. It is very similar to the way online models have simplified the task of booking airline and railway tickets. We have all the options in front of us and that makes it very easy to decide on the best option.

Online models have forced us to change many of our old ways. We have changed the way we bank, shop and communicate. TradersDiamonds will change the way traders buy diamonds.