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HEY!! I'm Not Rappaport (Diamonds): Don't Blame Me!
I'm Not Rappaport was a Tony Award-winning play by Herb Gardner.
Originally presented by Seattle Repertory Theatre, the first Broadway production, directed by Daniel Sullivan, opened on November 19, 1985 at the Booth Theatre, where it ran for 891 performances. The cast included Judd Hirsch, Cleavon Little, Jace Alexander, and Mercedes Ruehl. Hirsch won the Tony Award as Best Actor, and the play itself won for its lighting design and as Best Play.
Inspired by two elderly men Gardner met in New York City's Central Park, it focuses on Nat Moyer, a cantankerous white Jew, and Midge Carter, a feisty African-American, who spend their days sitting on a bench, trying to mask the horrible realities of aging, mainly through the tall tales that Nat spins. The play touches on several issues, including society’s treatment of the aging, the difficulties dealing with adult children who think they know what's best for their parents, and the dangers that lurk in urban areas.
There is another Rappaport currently in our Diamond Industry and that is Martin Rappaport who is the Editor of The Rappaport Diamond Report who publishes a weekly (Thursday-Friday) diamond price list showing wholesale diamond prices. This list, first introduced in 1975 has become the de facto standard Bible for diamond manufacturers, wholesalers, and retailers in configuring prices for their diamond inventory. The list is controversial with the main criticism being that it does not accurately reflect actual market buy and sell pricing conditions.
Martin Rappaport
Last week on Friday May 23rd, Rappaport startled the Trade and caused quite a stir by coming out with his list showing significantly higher prices across the board. While higher prices are justified for larger fine-make diamonds of 3 carat+ sizes of which there is a shortage and high demand; the price increases for smaller diamonds of which there is an abundance is in our opinion totally unjustified.
Rappaport seems to agree as he has conveniently backtracked and issued a disclaimer, explaining that these price increases may not be accurate, may go down, and that consumers should proceed with caution.
Mr. Rappaport says in his latest press release:
Question: Why does Rapaport increase prices on the one hand while issuing a caution about external economic forces and warning that diamond price levels may not be sustainable? Isn't that a contradiction?
Answer: The global economy is undergoing a period of extreme volatility. Oil prices have doubled. Rice is up 80%. The dollar has plummeted. Gold surged through $1,000/ounce and has recently corrected back down to $890. And then of course, there is the U.S. mortgage crisis. These are not normal times and they are impacting diamond prices. Rapaport does not set or control diamond prices. We report them.
At the same time we believe that it is responsible to present our opinion that higher prices are the result of external forces that could suddenly reverse direction. If gold prices can go up and down, the same can and probably will happen to diamond prices. We believe it is important to communicate the risk of volatility to the diamond trade. Furthermore, the higher diamond prices go the greater the risk that they may correct. Finally, we hope that our warning may cool down some of the speculation in the rough markets and cutting centers."
In our opinion, Mr. Rappaport has done our Industry and Consumers a grave disservice. There is no current valid, rational reason for diamond prices to be listed higher to the magnitude and percentage as indicated in the May 23, 2008 Rappaport Price List. Diamonds are a luxury product and with the state of our current and global economy, arbitrarily publishing ridiculously high price increases pushes away rather than attracts consumers to our beautiful products.
Let's see what type of reaction Martin gets from Industry Tradespeople and Jewelry retailers at this weekends annual major Diamond & Jewelry show in Las Vegas.
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Comments
We've already seen it.. The "guide" the claims to report current pricing, not set pricing, has caused a nearly instant jump in wholesale prices across the board.. A quick look at any of the industry diamond trading websites will show that quite obviously.. I'm seeing prices 20% higher than they were last week and already have customers who didn't pull the trigger two weeks ago complaining about the "new" prices..
Thanks again Martin, for an industry leader you sure do an awful lot to harm the industry while putting money in your own pocket..
Posted by: Feydakin on May 30, 2008 3:05 PM
Steve;
Couldn't agree with you more.
Regards,
Posted by: Barry G. on May 30, 2008 3:20 PM
Gentlemen,
I completely disagree with you.
Martin Rapaport's latest price rises reflect the prices not just in the USA but the world.
American diamond merchants are the most insular in the world and seem to only look at diamond prices within their own very limited market place.
They seem to forget, like most self centred Americans, that there are other people out there who buy diamonds apart from just themselves.
I appreciate American concern about customer resistance to new increased prices hurting your businesses in the short term.
However Americans need to realise that the market demand for diamonds has shifted to very quickly growing nouveau riche middle classes of Russia, China,India and even Panama.
America sadly for some is not once the economic powerhouse it was so much so that more dealers are now buying diamonds in Euro dollars rather than US dollars to avoid the risk of currency fluctuations.
The big money if you follow it is now elsewhere and the new prices are reflected by those new emerging markets.
I recall last year in Las Vegas, Martin Rapaport stating the obvious about Asia and the growth there.
In fact some of you may have missed the auctions for the new dot Asia domain buying sites recently.
For example we have secured DiamondImports.Asia
I must admit I was surprised about the 1/3 to 1/4 carat diamonds increasing but I am not worried.
They are still affordable and a natural flow on effect from the larger diamonds.
It's time Americans realise the diamond business is a global business not just an American one.
Rest assured this is the beginning of the first real diamond boom since 1979/1980.
I have been preparing for this day for the last four years collecting and hoarding stock so I could capitalise on the growth potential while keep our overheads low.
Start thinking globally with diamonds not just domestically.
It's ironic that those who condemn the Rap are quite prepared to use it the Rap when the moment suits them.
Good Trading
Daniel F Katz GG
Sydney Australia
Posted by: Daniel F Katz GG on May 30, 2008 5:49 PM
Daniel;
Advancing an argument by insult is the refuge of someone without a clue to a valid argument.
We Americans are many things but "self-centered" is not one of them. I believe your country is one of many recipients of American aid (in many forms, genero$ity and large$$e.
Advancing your 'argument' by quoting a statement by Martin Rappaort at last years JCK conclave is circular reasoning.
While India and China's demand for polished diamonds is increasing, there is more than a sufficient amount of polished diamonds in the .20- 2 ct range which are the bread and butter items for 95% of the buying public and certainly for Indian and Chinese citizens whose incomes are slowly increasing and that are only now being exposed to diamond sell-marketing by major diamond manufacturers and retailers. Shortages in larger goods from 3 carat+ do exist as demand is high and price premiums in those categories are justified, not in the smaller goods.
Posted by: Barry G. on June 2, 2008 10:29 AM
BTW David;
We have not raised prices on our SuperbCert in-house ideal diamonds.
Posted by: Barry G. on June 2, 2008 2:41 PM
Daniel,
I think that you are missing the point.. Martin has always claimed that he does not "set" prices, he simply "reports" current wholesale values.. This is not the way things just happened.. Wholesale values had not changed at all until Martin raised the prices in his "guide"..
This effectively gives one man control of most diamond pricing in the United States.. That is the problem..
Posted by: Feydakin on June 5, 2008 9:14 AM
Barry,
I am from Australia. I can not recall our country receiving aid from USA ever.
You must think Australia is a banana republic.
We have one of the highest living standards in the western world ( AND OUR COFFEE IS BETTER ! )
You must be mistaken.
In fact the USA is so busy subsidising your farmers who are unable to make a buck for themselves that legitimate beef, lamb and wheat farmers who receive no government handouts in Australia here are leaving the land because they can not compete.
How that helps us I have no idea.
We are supposed to support the USA while the USA schtoops us on trade against our main importers. Thats great support and largess as you call it.
Our troops are always asked to come and give the USA a helping hand..why I do not know.
It's never our wars but in the interest of good relations Australia always supports the USA.
Our country is used by the USA for it's strategic monitoring via it's satellites in northern Australia.
In fact your USA security depends on it and makes Australia a target.
How my comment defeats my argument has no relevance other than you possibly being offended.
Ask any non American how Americans are perceived and the answer is that most Americans are very insular and unworldly.
It's not their fault.
They have no need to buy or look elsewhere or even travel as much.
When I lived in LA back in the 80's most Californians thought I was New Yorker.
The concept of someone coming from Australia so far to live astounded them.
Many American like Australia emigrate from other countries..both our countries our melting pots of humanity.
The USA has no concept of other countries , their traditions or the problems we all face.
Rest assured we all have to hear about the USA in our media here.
The opposite applies when in the USA. Y9ou rarely hear about what is happening in Australia when in the USA.
Again this is a fact of life so need to complain.
Americans are famous for being easily offended.
This does not mean you are bad people.
A lot has to do with your education system.
Your past Presidents have had difficulty even referring to our prime ministers by their correct names and that tells you a lot.
The slightest criticism of the USA brings out the ugly patriot in so many Americans.
Go anywhere in Europe and Asia and see how Americans behave as tourists
You would cringe... loud obnoxious ignorant and ill mannered without considering other people's feelings.
Again it does not mean they are bad people but selfish yes especially the older ones.
Fortunately your younger folk will redeem you maybe.
When I often travel to the USA most Americans rubbish your own current President.His unpopularity astounded me when here in Australia most tolerate him for his courage.
It's strange how you are the goldfish in the bowl and we are looking in because you can not do the same.
Now that you are probably deeply offended down to business.....
Certain sizes you mentioned are always in demand..
I was surprised by the 0.30ct to 0.40ct sizes increasing.
But I have had shortages in 0.40 to 0.49 D- E VVS to VS in Ex to VG
Likewise 0..58-0.69ct and 0.80-0.89ct are running hot in Ex / Ex
The demand for these sizes is incredible and one of our strengths is carrying these in stock
The other big shortage and one of our biggest movers is 1.15 to 1.49ct D to F IF to Si1.
All excellent cuts.
These for me are bread and butter goods.
As for all the 3ct plus size of which we keep a current stock of never less than USD$5 million they have doubled over the last two years.
Has that helpled me ? No....
The prices go up but very few people buy these bigger diamonds here.
It may be a great capital gain but the same money would generate 8.5%pa in the bank here.
So you see I am not very smart when it comes to money but when it comes to loving diamonds and making people angry I excel.
I wish you well
Hag Sameach
Daniel F Katz GG
Sydney Australia
Posted by: Daniel F Katz, on June 5, 2008 12:32 PM
We have a difference of opinion.
There is no shortage of goods for us to sell, except in the larger sizes.
There was/is absolutely no reason for Rapaport to have raised prices of up to 25% at this time. For him to say now after the fact, that Tradespeople do not have to follow his price list is ludicrous and self-serving. Furthermore, can there be a conflict of interest here as Martin receives a commission on every diamond sale that is consummated off his Rapnet website diamond listings?
With the global economy in its current turbulent state and diamonds being a luxury item, raising prices now is counter productive. These price increases will push many consumers to purchase lower carat weight or lower color/clarity combinations that were not their first choice.
Current "bread and butter" items will collect dust in the safe together with current hard to move sizes. Is this what we really want?
I don't think so.
Posted by: Barry G. on June 5, 2008 12:55 PM
Barry G,
1)Shortage of larger sizes Agreed
2) No reason for increases. Disagree..USD$ is weak. Devaluation of the USD$ has to be compensated for espiecially if your older stock was purchased against a strong USD$.
3)Conflict of Interest... possible only if you are saying Martin is not being honest.Agreed there is a perceived conflict of interest.
In my opinion the Rap list is like an appraisal report. Appraisers should remain independent and not be trading to avoid that perception
4) Everything sells eventually. I stopped worrying about what does not sell anymore. I just buy because I fear losing a sale so I try to cover all bases. Not pragmatic or sensible I know but every diamond becomes part of me and finds a home in one of my safes.
Besides it makes those drop shippers and memo freaks look silly :-) which really gives me a lot of pleasure knowing that alone hehehe it's my pary and I'll cry if I want to cry if I want to ~~~~~
Now stop thinking and start selling !!!!
Atta boy Barryyyyy !!!!!
DK
Posted by: Daniel F Katz, on June 5, 2008 1:56 PM
Chinese Inflation Affects Diamond Prices
The Chinese government has increased supplies to control pork and grain prices as inflation hits 8.5%.
Made in China may be cheap products for the rest of the world but for those living in China the cost of living has increased so people are wanting higher wages...at least 12% more in Shanghai already.
China is becoming the world's largest exporter and Chinese goods despite cheap labour now cost more than they did three years ago because of the Chinese Yen strengthening against the US dollar by 20%.
The cost of raw materials is affecting their once competitive edge also.
It's only a matter of time before China exports it's inflation to global consumers.
Thousands of factories working on very low margins have shut down because they can not compete with surging production costs.
The coming Hong Kong fair is approaching.Those diamond dealers in Las Vegas two weeks ago should be grateful if they did not sell as much as expected.
The Chinese will probably prove to be better and bigger clients.
The rich Chinese will be on the hunt for large diamonds in their bid to combat the growing inflation rate.
Prices may increase again.
Rapaport will be vindicated if this happens.
Good Trading
Daniel Katz
Sydney Australia
Posted by: Daniel F Katz GG on June 14, 2008 4:39 AM
I have a great and honorable respect for Martin Rappaport and his movement, after watching the film "BLOOD DIAMOND" and Diamond Road; i wouldn't buy a diamond if u paid me>its sick, and the american people who ignore and support the people/CO.s who slave the minors/diggers in africa, have no love>in the love of Jesus Criest, they need help, i pray 4 Uz!
And all these women (simple minded), who believe a diamond on your finger means/signifies your marrige is secure:
u bitches are just as nieve as the male consumers who feed into that marketing BS the industry exposes u2!
Your man is going out and fucking some other bitch too, ur just the dumb wife at home that Your husband considers as his expensive TROPHY or your the finac$al degree of his success.
LOVE is an EMOTION>thats a human feeling thats given, retrieved, acknowledged and shared; that evolves into TRUENESS or GENUINE LOVE, that needn't be judged; because non of us are GOD!....Leave the job 2 him!
Jewelry is an expression of art design ones emotional state yes, but to express love for another out of the disreguard for/at the expense of human life and wellness>that sounds like hatred to me.
And you people think ur happy but ur not really happy>U THINK U HAPPY CAUSE U LOOK SNAPPY...ha haht yeah that my rap lol....
Martin Rappaport i support you......U R A HERO!
Posted by: IsisStaR on July 1, 2008 5:48 PM