The Prof recently wrote eloquently about the upcoming Hong Kong event, and hopes for a resurgence of the dormant pearl industry. Maybe so, but not many others subscribe to this possibility as the bell cow of pearl buyers around the world (America) is pretty much dead on its feet.Here’s what a major player in Asia, a widely respected pearl dealer, had to report to me recently on this matter:
We are estimating that the U.S. pearl market, on the wholesale level, is dead as a duck. None of the big hitters seem to have any appetite whatsoever... and this for many months, and likely many more months to come, so it seems. This is a huge market that is lifeless in the water, and, of course, it is us, the middle-men, who are suffering.
But imagine the farmers: the pressure on them grows by the week. Do you realize that the largest market just a few years back has practically closed its doors to purchasing? It’s a terrible situation. Many of us can only hang in because we are very small, innovative, and established also in Europe, Japan and Asia. We cannot count on the U.S. market any longer.
Here in Asia, quite a few medium and larger sized companies are in deep trouble too, mainly because they have loans with the banks and they MUST show a profit to these banks to maintain their loans and credit with the result that many are no longer honest and therefore are fiddling their figures to appear they are staying in the black. Unless the situation improves soon, this is a terribly deadly, self-perpetuating scenario.
This pearl picture looked bleak a few months ago... but the way many of my colleagues and I see it, it has NOT improved, and is not improving. To the contrary, it is becoming worse... and worse... and worse. I fervently hope that there are some of us to put the last lights out, should it come to this.
Sorry to be the conduit of bleak news. But this is a clear vision of what folks outside the country are thinking these days.
Perlemeister
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7 comments:
too many middle men in Asia anyway. It is time some of them go away - and disapear for good. It wuld help our market a lot. And the big companies who fidle with their figures - will eventually have to face their musik - it has been out of tune since long time.
By Asia, do you mean Asia, ex-Japan? or Asia which includes Japan? because the distinction is significant.
I really think you need to clarify this post, A LOT. Things are rough in the jewelry world and the pearl world will face many challenges over the next few years. There may even be some major changes in our little piece of the world.
With all of this in mind, I think it is a bit early to be assuming the entire US wholesale infrastructure is a "dead duck".
If you are referring to a specific sector, please clarify. If you are being dramatic for the pure drama, please stop. Things are challenging enough without broad statements on the state of the entire pearl industry based on one insiders comments.
We have lots to talk about and analyze in the coming months and years, but is this really the tact we want to take?
Yeah, right, spot-on! The industry shrunk tremendously and can no longer feed all the people it employs. We are in the process of major adjustments, which will take years to complete. Watch the number of dead bodies accumulating on the side-walks... the stench grows by the week. There are now two types of pearlers: those who take drastic steps, adapt quickly, and manage to operate with much reduced sales (and costs!), and those who can't adapt. The latter ones are (or will eventually be) published in the obituaries of the trade press.
Yes, you turd, Japan happens to be in Asia! Ever seen elementary school from the inside, and set foot abroad? Well, there are only TWO volume markets in Asia: Japan and China. Singapore, Malaysia, Korea, the Philippines, etc. enjoy NO wholesale markets of any volume when compared to the two giants (Korea was, at one time, coming quite close). Any more questions from newcomers who don't see over their fences?
Actually, Asiaperler, I do know Japan is in Asia. But, to lump Japan inside Asia when describing the pearl business is not exactly correct. Japanese pearl dealers are way more advanced in everything about the pearl business, including drilling, stringing, polishing, etc. General know-how. Of course the China is good at producing big volumes of FWP, but we all know how that pans out for the market. As far as SSP, Tahitian, and Akoya production go, Japan's production and distribution is NOT the same as Asia's (HK, China, SE Asia), hence the distinction is significant.
any word on how the paspaley auction went in september?
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