For 24 months all we have heard is that rough is more and more and more expensive. Every day one self elected guru or the other would inform me that rough diamond prices and polished prices have not been historically linked. This is like saying that gold coin has nothing to do with gold bullion. I believe the correct word is speculation.
In fact, polished prices have everything to do with rough prices. In times of tight supply, polished prices follow rough prices, albeit with a heavy lag. In times of limited demand, rough prices follow polished prices. (As we have seen recently.)
The difference it seems is that polished speculation is much weaker than rough speculation because of the difference in the players in the market - buying power has a lot more to do with price fluctuations in a speculative market, than does rationale. Rough prices went to far more astronomical highs and have and will continue to come down to far deeper lows.
The first question will of course be whether the big players will sit on their diamond cellars, and wait for the possibility that they will be better use mixed with concrete or whether some reason will enter the market, and everyone will realize that diamonds are not really scarce, and that new mine openings have been happening very aggressively. It's tough out there and it isn't coming to an end soon.
The second question is whether the auction model for dispensing of rough tenders will be grown as it seemed 6 months ago or whether this new reality will diminish it's future potential.
The third question is whether the largest market in the world - older American women, are becoming less interested in Jewelry. We've all seen the reports but we also saw the Fox News polls that said McCain was going to pull through. Polling is as much about who is calling as it is about who is answering the phone.
Either way - this roller coaster will be quite interesting. It has the potential to set patterns in macro economics, and in our sector that can determine the speculation of the future. (Or we'll just forget all about this 5 years from now, run up ridiculous debt again, and enjoy the same punishment.)
And now for the shameless plug: When you buy from diamond closeouts or closeout diamond jewelry from Simplex you are buying at either the lowest prices from 6 months ago or the lowest prices of 6 months from now. We predict market trends and discount accordingly. Our wholesale diamond jewelry is the most aggressively priced anywhere.
http://www.simplexdiam.com
Enjoy!
Tuesday, November 11, 2008
Monday, October 27, 2008
Simplex Diam Reaches New Milestone in Diamond & Jewelry Purchases
New York, NY – October 21, 2008 SimplexDiam, Inc. today announced purchases of over $50 million at retail in the month of July 2008 alone, signaling a move into a new growth phase of its liquidation division.
According to Chairman & CEO, Yogesh Madhvani, “This marks the first time we have gone public with the magnitude of business we do, but it is appropriate to let our prospective clients know our capabilities. Our asset recovery and services firm’s specialty is the diamond and jewelry industry, and we plan to expand further in this important arena.”
As financial regulators and the markets struggle to contain the ongoing credit and mortgage crisis, Simplex’s niche business has, among other major acquisitions, included the entire residual inventory of Friedman’s Jewelers, Inc (Formerly NYSE:FRM). Said a Vice President at Friedman’s, "I appreciate the input they gave us in evaluating our inventory in 2005 and 2006 …The mix of product was too wide…and even included a 17 carat plus GIA certified diamond. It would have been difficult to accomplish what we did without their help. In particular, their suggestions on how to best segregate the inventory and on how to structure the sale to get the maximum recovery were most useful.”
SimplexDiam also worked on the much publicized bankruptcy of LID Inc. as a “stalking horse” bidder, so named for setting the minimum reserve price on a bankrupt company's assets.” Chris Ellis, the President of Consensus Advisers LLC & CRO in the LID Bankruptcy noted, “SimplexDiam played a number of significant roles during the valuation phase and eventual auction of the $70 million of LID inventory. Their efforts contributed to a greater than expected recovery from the sale of the inventory. We value SimplexDiam's input and would readily work again with such an industrious team.”
Simplex’s services and consulting division was selected as the sole buying agent in India for a major publicly traded American retailer. Most recently, they have been consulting with the World Jewelry Center. According to Bill Boyajian, former President of GIA and current Managing Director of the WJC project, “We have been working with SimplexDiam and the Madhvani family for some time, and are impressed with their industry knowledge and ability to work on many different creative projects. They are true pioneers and we regard their contributions highly.”
Yogesh Madhvani has been an entrepreneur for over 33 years, founding and running companies in markets as diverse as textiles and the diamond industry. Among his current operations is a manufacturing business that caters to many fine American jewelry retailers. Madhvani was also a founding director of the Indian Diamond & Colorstone Association (IDCA) and a founding member of the Indo Argyle Diamond Council (IADC). He is a member of many other trade bodies such as the Jewelers Vigilance Committee (JVC), the Jewelers Board of Trade (JBT), and the American Gem Trade Association (AGTA). He is also a donor to numerous charitable organizations.
For more information on SimplexDiam, or to request a confidential appointment, please call (212) 883-0888, email sales@simplexdiam.com or visit http://www.SimplexDiam.com.
According to Chairman & CEO, Yogesh Madhvani, “This marks the first time we have gone public with the magnitude of business we do, but it is appropriate to let our prospective clients know our capabilities. Our asset recovery and services firm’s specialty is the diamond and jewelry industry, and we plan to expand further in this important arena.”
As financial regulators and the markets struggle to contain the ongoing credit and mortgage crisis, Simplex’s niche business has, among other major acquisitions, included the entire residual inventory of Friedman’s Jewelers, Inc (Formerly NYSE:FRM). Said a Vice President at Friedman’s, "I appreciate the input they gave us in evaluating our inventory in 2005 and 2006 …The mix of product was too wide…and even included a 17 carat plus GIA certified diamond. It would have been difficult to accomplish what we did without their help. In particular, their suggestions on how to best segregate the inventory and on how to structure the sale to get the maximum recovery were most useful.”
SimplexDiam also worked on the much publicized bankruptcy of LID Inc. as a “stalking horse” bidder, so named for setting the minimum reserve price on a bankrupt company's assets.” Chris Ellis, the President of Consensus Advisers LLC & CRO in the LID Bankruptcy noted, “SimplexDiam played a number of significant roles during the valuation phase and eventual auction of the $70 million of LID inventory. Their efforts contributed to a greater than expected recovery from the sale of the inventory. We value SimplexDiam's input and would readily work again with such an industrious team.”
Simplex’s services and consulting division was selected as the sole buying agent in India for a major publicly traded American retailer. Most recently, they have been consulting with the World Jewelry Center. According to Bill Boyajian, former President of GIA and current Managing Director of the WJC project, “We have been working with SimplexDiam and the Madhvani family for some time, and are impressed with their industry knowledge and ability to work on many different creative projects. They are true pioneers and we regard their contributions highly.”
Yogesh Madhvani has been an entrepreneur for over 33 years, founding and running companies in markets as diverse as textiles and the diamond industry. Among his current operations is a manufacturing business that caters to many fine American jewelry retailers. Madhvani was also a founding director of the Indian Diamond & Colorstone Association (IDCA) and a founding member of the Indo Argyle Diamond Council (IADC). He is a member of many other trade bodies such as the Jewelers Vigilance Committee (JVC), the Jewelers Board of Trade (JBT), and the American Gem Trade Association (AGTA). He is also a donor to numerous charitable organizations.
For more information on SimplexDiam, or to request a confidential appointment, please call (212) 883-0888, email sales@simplexdiam.com or visit http://www.SimplexDiam.com.
Subscribe to:
Posts (Atom)