Diamonds have continued to shine during the global pandemic. The diamond business, like most industries, was frightened by the dramatic shutdown of parts of the global economy. How would both supply and demand affect prices? Was anyone going to buy diamonds?
The diamond supply chain is unique: when demand decreases or market uncertainty looms, the manufacturers (diamond cutting firms like ours), stop production. Therefore producers (miners) stop mining or hold on to goods resulting in a constrained supply chain (miners have the luxury of knowing that the diamonds in the ground will not spoil). With the limited production of polished diamonds and a surprising amount of demand, prices for diamonds have held pretty steady. In actuality, it has become increasingly hard to fulfill the demand, which in turn has led to the restart of production and mining. Though there have been a few momentary price fluctuations in the past 40 years, market forces and consumer demand have traditionally created stable pricing for diamonds.
Although there is price stability, overall revenue for firms is down, and like every business, cash flow is king. This has created a unique situation in which many firms need to liquidate important diamond inventory to raise cash. Because of this, we have been able to acquire several diamonds and pass the savings on to our customers.
Rehs Co. has been fortunate, and over the past three months, we have delivered diamonds and jewelry to customers throughout the world. What we offer is exceptional expertise, the finest craftsmanship in the industry, and everyone’s favorite -- wholesale pricing.
