The magic of diamonds is weakening, and trade is under threat
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We will translate and interpret an article published yesterday on InstoreMag from a third-party perspective for our industry partners. The content of InstoreMag is mainly aimed at the retail community, so the content it publishes often has a significant impact on the retail industry.
The term "magic" used multiple times in the text is temporarily translated as "magic". Please understand. There are three reasons behind the value of natural diamonds:
1) Rarity
2) Emotional Magic
3) They confer a certain status to the wearer
However, landslides still occurred.
With the growth of top appraisal institutions like GIA, people have begun to place more emphasis on the level of diamonds, while attention to their magic has decreased. Greed has caused "too many merchants" to start selling diamonds with certificates and discounts. The original sales skills were relegated to the second tier, thus eroding the magic of diamonds.
The Internet has accelerated this evolution.
Many people (businessmen) believe that they can obtain goods through consignment and sell them at a meager profit, making it easy to make money. For example, they can get a diamond for $5000 and sell it for $5200, earning 200 from it themselves is enough.
However, they all made mistakes. Those internet sellers have gone bankrupt or disappeared one after another, but at the same time, they have indeed made money by buying and selling diamonds.
Some wholesalers have also started selling directly to consumers, some of whom are driven by greed, while others are driven by despair.
Today, many retailers are no longer stocking up (note: InstoreMag's background information is mainly based on the US market), but only doing consignment sales and then taking the goods out of the warehouse when needed. Everyone can feel the pain brought by this mode.
But these are just minor issues. Now this industry has a bigger problem: cultivating diamonds has emerged, and they have had a significant impact.
Many years ago, zircon was also considered a threat, but they were not.
This time it's different.
For the first time in history, real diamonds are appearing at very affordable prices and are still being lowered. Years ago, the cost of cultivating diamonds was very expensive, so it did not pose a threat to the market. But later on, all of this changed, and the cost of raw material production began to rapidly decline, and the price of finished diamonds also decreased.
Yes, some people may also want to buy natural diamonds, but part of the reason people buy natural diamonds is to show off
