Podcast: The Diamond Buyer’s View

Scott Berg, president of US retailer Lee Michaels Fine Jewelry, shared how changes in the diamond market — and drops in prices — have affected his company’s buying strategy. 

Declines in polished valuations have enabled the southern US-based jeweler to offer triple Ex stones with no fluorescence for the price that less desirable goods commanded in the past, Berg said on the latest episode of the Rapaport Diamond Podcast.  

“It’s a really unique time to be in this industry,” he said. “I hearken…back to when I first came into the industry 24 years ago. I think the prices are back to where they were then.” 

That is “a little scary, but on the other side, it presents a great opportunity for someone…in the natural-diamond market,” he continued. 

Finding nice SIs in 1- to 2-carat sizes is relatively easy now, though 3-carat and larger can be more challenging, added the jeweler, who has been visiting India on sourcing trips for the past 20 years. 

“The market is the most buyer-friendly market that’s ever existed for natural diamonds,” he commented. 

Berg also spoke about the differences in jewelry demand across regions of the US, including in the southern and southwestern states, where Lee Michaels operates 10 stores across Louisiana, Texas, New Mexico and Mississippi.  

“Trends tend to come [to the southern US] slightly later than they do maybe in the east coast or west coast,” he noted. “But the one thing that you get out of the south is family values, right? You’ve got people that care about people, communities that really want to make sure people succeed.” 

He also discussed Indian manufacturers’ pricing model and enhanced flexibility owing to the market downturn, as well as what he thinks about plans to shift parts of the sector from Mumbai to Surat. He also described his experience visiting a diamond mine in South Africa. 

Listen to the podcast here: