Traders Optimistic at Israel Diamond Week

RAPAPORT... Sentiment was strong at International Diamond Week in Israelas traders displayed optimism about the market and noted shortages were supporting prices.Visitors observed increased traffic and exhibitor numbersfrom last year, with dealers from around the world attending theMonday-to-Wednesday event at the Ramat Gan bourse. "It's a positive market, and we are happy to be here," said Digesh Shroff, senior sales executive at Venus Jewel, one of many India-basedtraders who came to exhibit at the fair.Shortages of goods are boosting themarket for sellers, visitors told Rapaport News.Whiledemand for the categories that Venus manufactures - higher-quality solitaires - is alwaysstrong, Shroff said, lower supply is supporting the market further."Withavailability of such polished production being less, the demand is high," henoted. "There is all-round demand from Israel, America, Asia, which is apositive sign."High rough-diamond prices are resulting in the lowermanufacturing levels and limited polished entering the market, according to anIsrael-based trader who wished to remain anonymous. He observed shortages inthe I-to-K color ranges, and VVS-to-VS clarities. "There are not a lot of goods on the market," he said."Either rough prices will come down, or polished will go up. I think polishedprices going up is more likely." Strong US retail sales over the holiday season also liftedsentiment, commented Shaul Shiri, president of G.S. Diamonds, an Israel-basedmanufacturer and supplier focused on fancy shapes. "The market has been recovering, both at the end of [last]year and now," said Shiri, whose business is mainly focused on the Americanmarket. "There are many reasons - workers got their bonuses, the economy isgood. There is an improvement. I don't know if it's significant, but it's animprovement." At the event, the Israel Diamond Exchange launched ane-commerce partnership with Chinese online retailer Alibaba, opened aninnovation center to house startups, and unveiled CARATS.IO, a diamond-basedcryptocurrency. The Israeli government will also give more than $286.6million (NIS 1 billion) to support the nation's diamond industry, EconomyMinister Eli Cohen announced at the event.