Buy Less Rough: Lessons from the September 2016 Hong Kong Show

(ehudlaniado.com) - In a departure from other shows over the past year and more, the September show in Hong Kong saw a decent amount of business, and many exhibiting diamond firms reported a rise in transactions compared to previous shows. There is a good reason for the change, and it does not necessarily serve as a positive sign for the diamond industry. A characteristic shared by most goods in demand at the show is that because their prices have declined to such an extent, they are now fit for smaller budgets. That is, even after the widespread price declines, consumers are still mostly interested in items that fit certain price points, creating an almost overriding demand for those types of polished diamonds. Therefore, the pickup in demand in Hong Kong signifies that prices are finally at the right level. At this lower price, consumers are beginning to buy, and that is an important message to everyone in the industry.