Diamond Traders Protest Drop in Price List

Diamond traders in Antwerp and Ramat Gan were angered last Friday when they discovered that the Rapaport price list had lowered prices on goods below what they felt was their true value. The irate traders were so unhappy that they started circling a petition, with some saying they are willing to go as far as pulling their advertising from Rapaport’s magazine.

Last Friday, the weekly price list lowered prices on many 3/4, 1/2, and 1/3 carat goods. A check of IDEX Online’s Diamond Prices shows that many of these items lost some of their luster, softening 1–2 percent, while others may have gained that much. However, according to Rapaport's price list, the drop takes place across the board, up to 6 percent for some articles.

In Antwerp, one HRD board member started to organize the four diamond exchanges in the city to send a mutual petition to Martin Rapaport.

Due to the reaction in the market, a meeting between the sides took place in the Israel Diamond Exchange (IDE) Monday morning. During the meeting, the traders asked that Rapaport consult with them before announcing such price alterations and urged him to rectify the price changes. Following their demands, Rapaport said he was willing to consider the possibility that the price reduction was a mistake and that he might need to revise prices at their request.

At the end of a second two and half hour meeting today (Tuesday) called by Martin Rapaport, traders reported that Rapaport is willing to listen to them, and asked them what they thought the prices should be.

"Now we need to wait and see what happens when the new list is published on Friday," concluded one trader after he met with Rapaport. "I hope he corrects the prices."

This is not the first time that Martin Rapaport has faced an angry reaction from the market. After the terrorist attacks of September 11, 2001, he reduced prices across the board only to bring them right back up following vocal market protest.