Little Impact from Synthetics

RAPAPORT… Retailers in the U.S. report limited awareness of synthetic diamonds among their customers. Judd Rottenberg, principal at Boston-based Long’s Jewelers, which has many customers who work in high-tech industries, has gotten a few queries from customers. But these generally have been “techies” who are aware of these diamonds for their industrial uses and are simply curious about them; they’re not interested in buying them.

David Boufford, vice president of public relations for Sterling Jewelers, said that Sterling’s experience is that its customers prefer natural diamonds. While customers might be comfortable with synthetic colored gemstones, according to Boufford, diamonds are different because they’re a symbol of love and appreciation, as well as a stored-value vehicle.

Sterling does not sell synthetic diamonds and promotes the fact that it carries only natural diamonds. Boufford feels it’s important for the industry to be vigilant when it comes to insuring that detection technology keeps synthetics from making their way into the supply chain. He also emphasized the importance of full disclosure to the public by jewelers when they sell synthetics.

The Real Deal

The fact is that, when it comes to diamonds, most consumers seem to want the real thing. Susan Stevens, president of Sid Stevens Jewelers, Albany, Oregon, said that when she has a couple who can’t afford a real diamond, she encourages them to invest in a beautiful setting and purchase an inexpensive cubic zirconia (CZ) stone for $20, then upgrade to a real diamond when they can afford it within a few years.

John Purvis, owner of Purvis Jewelers, Lakewood, Colorado, outside Denver, is seeing some misrepresentation in the marketplace. One young woman showed him a stone that her fiancée had paid $130 for because he thought it was a synthetic diamond. It was actually a cubic zirconia that Purvis would have sold for five dollars.

Purvis has no plans to sell synthetics. For one thing, prices for synthetics and more expensive imitation diamonds such as moissanite are high enough that consumers might as well buy a natural diamond. And, he’s concerned about keeping the two inventories straight. He doesn’t want to sell a synthetic as a natural or a natural as a synthetic, accidentally getting half the price that he should.

Seasonal Ups and Downs

July and August can be unpredictable for some retailers, alternating between slow and busy. Purvis reported his business as essentially even across most categories, although not as strong as he’d like it to be most weeks. Still, pleasant surprises keep popping up. The most recent was two customers interested in high-ticket pieces with colored gemstones in settings accented by smaller diamonds. “If I sell either of these, they will be the most expensive, single, colored stones I’ve sold in the 32 years I’ve been in business,” he said. That sort of big-ticket item is what makes or breaks a month for his business.

Purvis’ store does well with colored diamonds, but that’s because they’re a passion of his and he’s been collecting them for 30 years. He’s now getting several colored diamonds made into pieces of jewelry so he can show them to prospective customers — he’s found his clients need to see something tangible to get the idea and then can decide changes they want. He plans a major marketing campaign to upscale clients once he has the necessary critical mass completed; the campaign will run later in the fall.

Jeff Jaffe, president of Harold Jaffe Jewelers, Toledo, Ohio, describes this time of year as a bit of a “crap shoot,” with most of his business being bridal. “We’ve had a lot of action there, whether it be kicking the tires or actual purchases, but bridal activity is pretty strong,” he said.

Stevens reported that the store has been selling a lot of diamonds for anniversaries and these tend to be large diamonds — couples are jumping up to 2-carat diamonds from sizes of under 1 carat. Somewhat to her surprise, marquise cuts, which had been “dead for us for years,” are seeing some popularity. She’s finding that Journey pieces do well—the designs resonate with her customers, although they don’t like the marketing campaign at all.
A trend Sterling is seeing is customers going for combinations of yellow and white, such as white diamonds accenting a larger, yellow diamond. “They want to wear both and customers are finding ways to weave them together,” said Rottenberg.

The Marketplace

• G-H is predominant color choice.
• Preferred clarity is S1-S2 range.
• Size preferences start at 1/2 carat to
1 carat and up.
• Demand is strongest for square shapes.
• Vintage cuts are gaining in popularity because younger customers appreciate their retro charm.
• Younger buyers also are buying bigger than their parents did.
• Retailers say they’re able to get the
supplies they need.