This was written in February of 2009

It’s a strange thing. The past few years have brought a new degree of genuine “commodity type” behavior for diamonds. Declining value of the US dollar triggered large and consistent increases in the value of most wholesale diamonds, as it did with other commodities. A weakening global economy and subsequent strengthening of US currency precipitated declines in diamond values.

Now we have banks calling loans so diamond manufacturers are forced to liquidate inventory just to stay solvent. This desperate attempt to exercise inventory coupled with the publics’ scramble to pawn engagement rings for cash has brought about a bit of a glut in product… especially for certain shapes and sizes. However, the freeze in capital has also halted manufacturers’ ability to produce new inventory.

The boston jewelry exchange's wholesale diamond and jewelry affiliates and discount jewelry retailers goal is to  buy as much as possible between the 35-75% back mark of the bread and butter 1-3 carat goods, preferably certified, and hold until things turn around. I hope we see things start to mend in 6-12 months, but this very well could be a 2-4 year correction. Whether the global markets genuinely heal or inflation hits, I figure we as a company will be primed to make great margin on what we bought “very right” now.