Sales continue to climb, but the cost of inventory is rising as well

(diamonds.net) - What a difference a year makes. Optimism was abundant in the market this past month, carrying through to predictions of a strong holiday season. Even with an eye on shrinking margins, positivity reigned. “The one thing we have to look out for is price increases — if and when they come,” said Yosef Poplack, vice president of sales at New York-based wholesaler Gem Wave. Gem Wave’s niche in melee, layouts and matched pairs of fancies has temporarily shielded the company from the tight margins that many in the industry are facing, Poplack said. While he has not encountered any problems securing inventory, he believes the reduced workforce at Indian factories due to Covid-19 is a concern for the industry. As to whether politics was affecting his business, he declared that it was “not even an issue” and that the important thing was “getting the domestic and global economy going.” “Retail stores are buying jewelry,” Poplack reported, adding that even last summer, he’d been able to “sneak into the office” and ship out goods to new clients, who continue to buy from him. Several months ago, Gem Wave expanded its offerings to include Gemological Institute of America (GIA)-graded stones of half a carat and up in rounds and all fancy shapes. All its inventory is “100% natural mined diamonds,” a selling point the company displays on its website and documents. Poplack’s association with several trade groups has helped further his company’s reputation and extend its client base, he said. And his consistent advertising has generated calls from potential clients. “If things keep going the way they are now, I can only see business increasing through the holiday season as demand gets higher. Things are coming back to life.”