CollectionsApr 30, 2024
12 Otherworldly Pieces From Tiffany & Co.’s 2024 Blue BookThe “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
SourcingMar 24, 2020
Companies Pull Goods off RapNet in Droves After Price Cut
Mobilized via Instagram, hundreds of companies have removed their diamonds from the trading platform in protest.
This is a screenshot taken Tuesday of @stock_off_rapnet, the Instagram account started in protest of the recent price cuts to the Rap list. The Instagram account ignited a global movement, with hundreds of dealers pulling their diamonds off the trading platform.
New York—Hundreds of diamond companies have removed their goods from RapNet after Martin Rapaport cut prices by an average of 7 percent across all types and sizes.
The movement started last week after the latest Rapaport Group price list came out on Friday morning.
During a Skype interview on Sunday, Martin Rapaport told National Jeweler he made the decision to cut prices after he saw them going down amid the spread of COVID-19.
The movement started last week after the latest Rapaport Group price list came out on Friday morning.
During a Skype interview on Sunday, Martin Rapaport told National Jeweler he made the decision to cut prices after he saw them going down amid the spread of COVID-19.
The Rapaport Group chairman expressed sympathy for dealers during the unprecedented crisis but said the point of the price list is to reflect what’s going on in the market and establish a benchmark that’s fair to both dealers and buyers.
“I am doing my job—to communicate diamond prices and to establish a fair balance,” he said. “If you don’t like it, don’t look at it, don’t use it. [But] I can’t put out false information.”
Rapaport’s decision ignited a firestorm among diamond dealers and a protest mobilized via Instagram.
Doron Serrouya, owner of Israel-based Yondor Diamond, said his son, Ido Serrouya, helped him start the Instagram account @stock_off_rapnet, which had more than 1,600 followers as of Tuesday morning and already more than 500 posts.
The account is a compendium of the logos of companies that have pulled their goods from RapNet and/or are benchmarking their diamonds against an older Rap list.
The Instagram account includes messages from some of the largest players in the diamond industry including Rosy Blue, Diamex Inc., Pluczenik, Venus Jewel and Taché.
Serrouya said in a telephone interview last week he woke up last Friday (March 20) to see prices slashed.
“We are not the stock market,” he said. “It’s not normal that you wake up in the morning and all the diamonds are less because of the coronavirus crisis.”
“Instead of helping the industry, [Rapaport cuts prices],” he lamented. “It’s not normal. It’s really not normal.”
Serrouya and a fellow diamond dealer created @stock_off_rapnet, jumpstarting a viral, global movement of diamond companies—more than 450 as of press time—deflecting from RapNet in protest of the price cut.
It caught on “like a fire,” Serrouya said. “Everybody decided to do it.”
The Suspension Question
In Sunday’s interview with National Jeweler, Rapaport dug in his heels when asked if he would consider rolling back the price cut: “No way. I’m not a liar,” he said.
But in a letter sent to dealers Monday, Rapaport offered another alternative—giving RapNet members the opportunity to vote on suspending the price list until Friday, May 1.
Editors' Picks
Sponsored by
“Many have expressed outrage about the reduction of prices in our March 20 price list. Others have asked that we suspend publishing the price list. While we reject the idea that prices have not declined and requests that we recall the March 20 price list, we are receptive to calls for a short-term suspension of the price list,” the letter reads, noting this would mark the first suspension of the list in its 42-year history.
Voting was slated to close around 10 a.m. EDT Tuesday, but the rallying cry on Monday afternoon among those who united via @stock_off_rapnet was for another boycott—a boycott of the vote.
Results of the vote were not available as of press time Tuesday. National Jeweler will report the results of the vote in a separate story.
“For the first time ever, the diamond industry is united and determined to create its own trade platform, which is transparent and independent, not from a private company,” Yodor Diamonds said in an official statement shared via WhatsApp.
“There is no meaning in freezing a price list, which we never agreed to.”
Price Protest Déjà Vu
This is not the first time RapNet has caused an uproar.
A similar controversy arose in 2008 but, back then, it was a price hike (as much as 25 percent for some goods) amid the financial crisis and just ahead of the Las Vegas jewelry trade shows that roiled dealers.
This time, however, there is growing sentiment among dealers worldwide Rapaport might have crossed a line that could spell the end of his long-standing trading platform.
“Prices haven’t gone up, prices haven’t gone down, prices haven’t gone anywhere,” New York-based diamond dealer Ronnie VanderLinden said in a phone interview Monday, noting trade has been non-existent for the past week and a half due to the coronavirus. “He really stepped over the line.”
In addition to being president of Diamex, one of the companies that has pulled its goods off RapNet, VanderLinden is president of the Diamond Manufacturers & Importers Association of America.
On Monday, he sent a statement to DMIA members suggesting they consider trading platforms other than RapNet, like IDEX, Polygon or Virtual Diamond Boutique, while also noting that a new, alternative industry platform is in the works.
“This is not an endorsement of any of these specific platforms at this point; I am only citing them as examples of existing viable alternatives,” the statement read. “Whether you continue to use Rapaport’s services is your decision and your decision alone. However, I urge you to consider other options as well.”
The letter goes on to state DMIA members “must consider the future well-being of our industry.”
“The time has come to diffuse and diminish Rapaport’s overwhelming and indeed conflicted control over our industry,” VanderLinden wrote. “Restoring this industry to a free, open and transparent marketplace is in our collective best interests.”
More on Sourcing
The Latest
MajorsApr 30, 2024
Zales Celebrates 100 Years With New CampaignThe brand also created a 100-carat lab-grown diamond necklace in honor of its centennial.
MajorsApr 30, 2024
Platinum Guild International Appoints New CEOTim Schlick has been promoted from his previous position as COO.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
Events & AwardsApr 30, 2024
Canadian Jewellers Association Brings Back the Summit It’s the second year for the event, slated to take place in October in Toronto.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
Recorded WebinarsApr 29, 2024
Watch: Diamond Identification and Evaluation - How to Protect your BusinessSupplier Spotlight Sponsored by GIA
CollectionsApr 29, 2024
Simone I. Smith Mixes Denim and Diamonds in New Collection“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
IndependentsApr 29, 2024
Venus Jewelers Relocating After 45 YearsThe retailer is moving to a newly designed space in the same shopping center.
SurveysApr 29, 2024
Mother’s Day Jewelry Spending to Reach $7B, Says NRFGifts that are unique and thoughtful are top of mind this year, according to the annual survey.
CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
FinancialsApr 24, 2024
Kering’s Jewelry Brands a Bright Spot in Tough Q1The luxury titan posted declining sales, weighed down by Gucci’s poor performance.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
