, 1921-08-04
NO REDUCTION IN
DIAMOND PRICES

In some sections of the country q
newspaper story to the effect that
diamonds were to be materially re.
duced in price.
This matter was Immediately taken
up by the jewelers. Vigilance Com
mittee and a thorough investigation
made as to the authority for such a
report. with the result that Lee
Richman, Chairman Of the Diamond
Committee of the jewelers. Vigilance
Committee. has sent out for publica-
ton the following, which has been
published in the New York Evening
Journal and other prominent news
papers of the country:
1.-THE diamond and jewelry in
dustry was astonished at the sensa-
tional publicity given to the abso-
lutely false and misleading state
ments on the slump in the diamond
prices and the intimation that this
was the sudden cause Of loss Of
fortunes to many diamond dealers
and individual diamond owners
The first fact cited is the reduc-
ton of prices per carat for rough
uncut stones from $45 to SIT per
carat. 1t certainly must be obvious
to any intelligent person that rough
diamonds at the prices quoted above
are absolutely unfit for ornamental
purposes and as far as the jewelry
industry is concerned stones at this
price would be better used for street
paving purposes. 1t Is absolutely
impossible to make a quotation other
than to state that rough diamonds
which are cut in this country average
1875. equaling at the present rate Of
exchange 800 per cara, tina sizes
starting at one carat in the rough up
wards which when cut into a finished
gem nets about 40 per cent of it's or
iginal weight. Finer gems costing
more In proportion. To the above
prices quoted must be added duty,
cost of labor for cutting and polish
ing and some profit for the dealer.
1.-The second statement made, that
a prominent diamond broker of Lon
don cannot DISPOSE of $500, 900 worth
of diamonds for SEQ, 900 il so utter
Nv false and absurd that ia pitfable
we are compelled to dignity It with
a denial, The writer is Of the opinion
hat this so-called (prominent?1 mer-
chant could not properly hold a lob
collars behind a counter.
"Actually the facts are. there has
been little or no ~profiteering in the
diamond and iewelry business, as is
evidenced by the fewer financial dis
asters in the Jewelry Industry as
compared to all other industries. 1t
still remain an absolute fact that
diamonds in the hcnds of consumers
for years have proven themselves to
he Of greater intrinsic value, aside
from the pleasure they afford, than
anv other commodity that could have
been nurchased by them. The writer
donbts tho authenticity OF any such
interview with a reputable diamond
dealer and believes thai It was in
sn,rcd nv some one with an Interior
motive"
We also wish to publish herewith
a renort which comes from Chicago,
ana which IA the result Of a very ex-
hanstive Investigation regarding the
conditions Of the diamond marke
and the probability of a priceereduc-
tion The report is as follows:
"The present price of diamonds
will, he maintained. This may be
stated authoritatively. The mini
nun retail price for diamonds of
fine onaIitv ia 1850 a carat. The
london diamond Syndicate, which
markets the rough output of the
South African mines, recently an
nounced OFFICIALLY that there would
he No Reduction in prices. The stand
Of the syndicate which controls 50
ner cent Of All rough diamonds on
the worlds markets. ia backed up by
the recent action of the manufactur-
orc the Association Of Dealers in
Polished Diamonds. the Association
~ and Commisaion Mer-