In the wake of the recent crisis in Japan, experts say that diamond prices and demand will show little to no change globally despite initial fears within the industry. Although stocks from other luxury goods companies have been hit hard as a result of the destruction of the quake and tsunami, there is a logical explanation.
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"Japan hasn’t been a large consumption market for diamonds in some time because the country has been in a recession, explains Ben Janowski of jewelry industry consulting firm Janos Consultants here. Janowski recalls a Japanese diamond dealer speaking at the Gemological Institute of America’s Symposium some 12 years ago, saying even then that diamond sales in Japan had been dropping off for five years.
“As tragic as that event is, I don’t think it’s going to have a huge impact globally in where diamond pricing and diamond sales are going to go,” Janowski said. “I think it’s going to have some impact but really minor.”
Figures provided to National Jeweler by Rapaport on Wednesday showed that polished diamond imports to Japan totaled $694 million in 2010. While that figure makes Japan one of the world’s larger consumers of diamonds, the level of consumption is nowhere near what it is in the United States or Hong Kong, where polished diamond imports exceeded $16 billion and $10 billion in 2010, respectively, Rapaport research shows."
Source: National Jeweler
This news is undoubtedly relieving to those in the jewelry business, however, there are no real winners here. Our thoughts go out to the victims of this horrific tragedy.
If you haven't already, please be sure to do your part and support legitimate charities to help those suffering in Japan.
To donate to the American Red Cross visit www.redcross.org or text REDCROSS to 90999 to make a $10 donation to Japan's disaster relief fund. ~vK