A group of leading Israeli diamond traders and manufacturers have decided to post their diamond stocks at full prices on the RapNet Diamond Trading Network (RapNet).
The decision follows the publication of the latest Rapaport price list which showed that Rapaport had reduced the prices of a wide range of diamond categories without any commercial justification.
The group expressed not only its frustration and concern with the lack of transparency as to how the Rapaport price list is compiled, but also noted that the high frequency and the sharp changes in the price list are among the major causes of the volatility in polished diamond prices. The companies therefore decided to post list their stocks on RapNet only at full prices.
The companies participating in this initiative on RapNet are all companies which manufacture and trade diamonds, in Israel and abroad.
Expressing their concern with the negative effect that frequent price changes have on the downstream diamond market and, ultimately, on the confidence of the end-consumer in diamonds, they suggested that the diamond industry would be much better served by a long term price list that would advance price stability, significantly increase customer confidence and, last but not least, prevent unnecessary commercial damages to diamond manufacturers.
The Israeli companies' initiative is also in support of a similar step taken by a number of Indian diamond companies which became a major topic of discussion in the corridors of the Israel Diamond Exchange complex and garnered outspoken support from the Israeli diamond business community. It seems that this will not be the last word to be said about the Rapaport price list's influence and lack of transparency.
