The diamond industry is not just mining rough diamonds and manufacturing polished. It is also trade in these gemstones. While there is its retail end to do the job when it comes to public at large, many jewelers, investors, collectors or buyers seeking something special turn to those in the industry who are able to satisfy their requirements – companies offering buying services based on their expertise. Moti Israeli Diamonds is one of them and says that making a decision between two diamond reports is as if reading a film script without watching the movie for choosing between two actual gemstones is the reality, which has no substitute. Moti Israeli, running a second-generation family business, gave this interview to Rough&Polished.
Could you briefly describe the business of your company?
We offer a complete buying service for purchasers of diamonds that require reliability, regularity of supply and the best value for money when working with fixed budgets.
What is Moti Israeli Diamonds doing to promote its goods and services?
We have launched an informative, comprehensive website that receives regular blogs and interesting discussions, this is in addition to presenting ourselves at international trade fairs, and being well represented and recommended by professional bodies.
Could you give some figures describing your company’s performance?
Our trading figures show an upward trend even when times are volatile.
Moti Israeli Diamonds appears mainly to sell goods ranging from 80 points to 2.5 carats. At the same time you say your customers may include investors and collectors, who, as we know, tend to hunt for larger stones. Do you mean they buy within this product range?
There are many different types of collectors and investors and although the media reports in the main the glamour stories of large single stones, the carat range that we have mentioned has excellent investment results when purchased correctly at the opportune times.
In a YouTube ad, your company promises a 20% discount for diamonds it offers; meanwhile many diamond manufacturers say they can hardly be able to reach even a five-percent margin nowadays. Can you comment on this?
Our ad shows that our prices are lower than websites offering sales of diamonds; we are therefore able to ensure that our customers will benefit from a profit margin on the basis of current worldwide sales and our own prices for available merchandise.
Forty years in business is quite a history. With this experience under your belt, could you share your vision of the imbalance between rough and polished goods which disturbs the market from time to time?
In reality the rough and polished goods businesses are two separate entities and the rough business does not take into consideration the eventual sales of the polished goods market. However, when taken over a long time period the imbalance as you call it, does in fact rectify itself.
If there is a remedy to fix this situation, what is it, in your view?
The remedy will be the consolidation of the two separate ends of the trade and with the rapid increase of the role the Internet is playing in the industry - this will cause the wide gap to narrow.
Do you think the diamond industry is losing the market to other luxury goods?
We think the opposite is the case, large luxury goods brands have been suffering during the last year, which we attribute in the main to branding expanding to lower value goods. Large sectors of the jewellery market have switched from gold to silver and other metals which are also encompassing diamonds, we therefore feel that the demand for diamonds as a commodity is therefore still present and has not lost its image in emotional, advertising or investment terms.
Was the start of 2013 promising for Moti Israeli Diamonds or not?
The year started well for us and assuming that this will continue, we look forward to our trading position in 2013.
What is your outlook for the diamond market this year?
In light of all we have said in this interview, we expect that the diamond market will consolidate itself in very satisfactory terms during the coming year.
Vladimir Malakhov, Rough&Polished