Industry alarmed at Raplist decision to drop price list by 5-8%; companies remove stocks from RapNet

Diamond companies are coming together to boycott Rapaport's price list in an effort to force RapNet to revoke its price drop
Industry alarmed at Raplist decision to drop price list by 5-8%; companies remove stocks from RapNet

While the industry at large is trying to combat a global crisis, Raplist, the industry’s only diamond trading platform has decided to drop its price list by 5 – 8% for no rhyme or reason. Industry sources say that RapNet held an estate auction from 16-19 March and made profits knowing very well that it will drop its price list the next day and stakeholders are deeming this move by Rapaport unethical.

On 10th March, members of RapNet also received a message from Martin Rapaport on how such challenging times should be turned into opportunities and another letter was sent ton the 19th stating that it would be doing everything in its power to create liquidity at fair market prices given the scenario. However, the decision to drop price list is absolutely contradictory to both letters.

After a global shutdown, when the market begins to bounce back, buying will be defined by heavy discounts anyway. Decreasing the price now makes no logical sense and only puts the stakeholders in a tougher spot. The margin for wholesalers and brokers are very low, probably between 2-3 per cent and such a marked drop in price list is detrimental for the industry.

Many people in the industry believe that this price drop comes at a very challenging time, when the industry is already struggling to fight a bigger crisis. As RapNet has been an integral body of the diamond industry for many decades, stakeholders believe that the decision to drop the price could’ve been postponed for the common good of the industry. Today’s decision to drop price will lead to lack of confidence in diamond prices and panic amidst diamond manufacturers to create more liquidity.

Stakeholders came together to ask Martin Rapaport to reconsider his decision of bringing down the prices during such a challenging time. The decision has not stemmed from the fact that the demand is low, but because of a global lockdown and supply chain issues. Companies like Ario, Yondor, Barbi, Samir Gems, Pristine Diamonds, Paloma and more decided to show solidarity against Rapaport’s decision by removing their stock from RapNet and stating the same on their social media handles.

However, efforts have been in vain, as Martin in a statement sent earlier mentioned that Rapaport Price List reflects the “realities” of the market and that the price list is used by buyers not just sellers. The statement read that buyers want to be sure that they are buying at “correct” price levels. But who is to decide what the right price is? The price list offered by Rapaport is neither backed by research nor data but has been something the industry has accepted as a standard for decades. The industry has to protect itself from further blows and the only way to do it is by boycotting Rapaport’s Price List.

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