Every day it seems we hear about another jewelry store closing or in bankruptcy. Jules R. Schubot in Troy, Michigan; Standt’s in Muncie, Indiana; Carrol’s Jewelers in Coral Gables, Florida; and Mednikow’s branch in Atlanta are just a few of the big-name independents recently announcing they are closing. Leo Robbins & Sons in Philadelphia is being forced into bankruptcy. And the Finlay going out of business sale is going on across the country.
The true value of diamonds has been dropping for months. Everyone hears about the economy tanking, the mortgage crisis, imminent auto manufacturer bankruptcies, factories closing down, and more.
Finally we have a week for Jewelry in New York. Mayor Bloomberg will be issuing a proclamation that April 20-26th will be considered “Sparkle Week.” Department stores, jewelry retailers, and others are expected to promote aggressively and help build this into a major event.
Robbins brothers filed chapter 11 today. It is expected that they will be split into two parts, each sold off. Consensus Advisers will be financial adviser to the creditors. Another one down. There has to be a record in there somewhere.
Ok so this is our chance to boast.
After we won the Friedman’s deal: Click Here
We went on to win the Whitehall deal: Click Here
I’ve started hearing good things again. As some customers are seeing more and more difficult times, others have turned the corner. Today, the call of the day was from a customer in the South. In the last ten days he sold ten stones over 1 carat. That’s impressive.
I was sitting in the train a few days back listening in on a conversation. Riders beware, this is a regular event.
I just returned from India after the shortest trip I’ve had in years. It is impressive what sentiment will do in a third world country. From my ships window, the small portal I have into the larger world, things seem surprisingly okay over there. The markets are flailing, with people suggesting another thousand point drop. The banking industry is tightening its lasso around corporate necks. The mortgage market is very safe but as a result the real estate inventories are astoundingly high. And yet…and yet. Perhaps it’s wishful thinking, but I do believe India as a whole is just in a funk whereas New York and America seem to have found a canyon.
For 24 months all we have heard is that rough is more and more and more expensive. Every day one self elected guru or the other would inform me that rough diamond prices and polished prices have not been historically linked. This is like saying that gold coin has nothing to do with gold bullion. I believe the correct word is speculation.