So what the hell is going on over at GIE?! According to a release today Coeroli is out and and promotional funds diverted to only the three major markets. How does this make any sense?Coeroli was one of the best things to ever happen to GIE. He has had so much influence over the industry and done such a great job promoting French Polynesia's number one export to the world. I would put him right up there with the likes of Wan, Domard and Assael.
The events in the industry are understandable. The US economy sucks. The dollar is dropping like a rock against every currency but the yen. The primary buying markets for Tahitian pearls are Japan and the US. Jewelers are scared to stock pearls. Wholesalers are stuck with inventory that is not moving. They are not interested in buying more. This has meant a huge drop in demand that is hitting at the same time an over-abundance of supply is hitting the market. Everyone has 8-10 mm goods to move. They can barely give them away.
Hopefully this is just another wave through the industry. Things always have a tendency to be cyclical. Things will get better. But what about the GIE? Are these changes permanent? Are they going to abolish the export tax?
Questions, questions questions... only time will answer them all.
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3 comments:
If the prices drops then more and more people will be able to afford them. So the buying and selling should continue.
It is a little more complicated than that.
Currently a lot of Tahiti's production does not leave Tahiti. It stays there because it's crap and its value is less than the export tax. So no one will take it out of the country.
If the export tax is lifted then every seller of crap jewelry looking for the next cheap thing will jump on it. Tahitian necklaces for $49.95. Can you imagine it? The quality would be like oyster shit and the entire industry would suffer an image crisis like the Rice Krispie pearls from China in the 70s and 80s.
Wow! I didn't know the prices of Tahitian are really dropping to an all time low. They have been once considered the rarest and most prized pearls. A lof of Tahitian pearl farmers or lovers are dissapointed seeing their treasures lose it's value day after day.
I think they should start cultivating
white and golden South Sea pearls and even Akoya too!
It is predicted that if Hainan, China will start South Sea pearl productuction then the prices of all pearls will start to drop. That is good bcoz more people can now afford to buy them and adorned their house, their pets and everything else in pearls but I think for collectors and connoisseurs like me will focus on collecting more natural pearls since they never lose their investment value.
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