The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-06-22
THE DIAMOND MARKET.
Prices Are stin and VIII Go Higher
by Next Fall.
Washington Star.

Washington star
A article I noticed recently in the Star on
imitation diamonds reminds me OF a fact or two
concerning the real article, which may prove Of
interest TO those who possess these gems and 10
those who would like 10 have them" said the
diamond expert in a Washington Jewelry house,
the price OF these Jewels would 20 down by this
time, instead Of which the wholesale and nee
essarily the retail price has steadily climbed
next fall than they are to-day. The wholesale
diamond market is unlike that OF other mar
by a surplus, with attending drop in prices.
The only diamonds on the market to-day come
Brazil are now worked. No new mines are be-
ing discovered. as is the case with gold and
the South African mines is, therefore, a matter
Of estimate and conjecture, and even II new
the diamond trust could be relied upon 70 control
them. At any rate, none are being discovered,
and thus the market stands to-day. This In one
measure accounts for the stifening and upward
tendency Of the market. CT course, you under
the diamond mine trust, and they can let go or
hold back as little or much as they please. and
importer, a friend Of mine, went abroad for the
purpose of putting in diamonds any way up 10
the market was fierce meaning that at the
present prices OF high-grade stOnes-and my re-
as they merely follow along In line-there was
no money in them 10 buy wholesale abroad. You
see. we are retailers, and IL the wholesale mar
a big raise on our. retail prices that the change
is at once noted by purchasers, and il makes
them hesitate and balk a bit.
1--WE have sold more diamonds in Washington
in the past two years than in any three or our
previous history. The demand, like the market,
is stiff. and when such is the case reduction Of
rrfces is. OF course, not thought OF. The big i'm
porters do not like 10 buy heavily in the face
OF a continually rising market, for II the tide
should turn they would be badly caught. as com
petition IS keen. and some Of the importers do a
business on a margin OF 10 10 20 per cent profit.
Assuming that they did business on a margin
Of . per cent. profit. a slump OF y per cent.
would scorch them badly. The retailer can do
business on a more independent margin OF profit.
Thus, II he can get 80 Der cent he will take o..
while he may. to effect a sale. be satisfied with
20. or even 10 per cent. It all depends upon the
house. The retailer must necessarily make a
good margin OF profit on diamonds as compared
with his other stock, because their sale Is pro-
portiOnately less in quantity, and where a dealer
may have TO hold goods for a long time he
would soon 90 out or business n his profit was
not large. Where goods are turned over quickly,
as groceries. a small profit IS money-making.
Retailers, however, keep up their end Of the
market. and IL is seldom that you will find one
cutting the other on diamonds: IL wouldn't pay
all around.
Another point about the diamond market Is
this: Steel-blue stones are scarce. and their
value II high and uncertain; that is. they may
be worth $500 a carat or $500. wholesale. II de-
ponds upon how much the purchaser desires the
particular stone or stones. Dealers VIII keep
these high-grafe stones In their safes. perhaps
for years, before they viii let them 90 until
they get their price. They are not shown usu-