Diamonds

After every financial crisis, curious eyes turn toward the luxury trades. Last week, many eyes turned toward diamonds. Sardonically, they noted the following developments in three great world diamond centres:

1) In Amsterdam, buyers deserted the Tulpstrat and the Saphartistraat, famed centres of diamond cutting; the Dutch Diamond Association voted to reduce working days from six to three a week, from Dec. 8 to Jan. 4.

2) In Antwerp, largest diamond cutting centre of all, Belgian diamond magnates gathered to discuss the impossibility of finding work for 15,000 highly paid cutters, decided to suspend all operations from Dec. 7 to Dec. 21.

3) In London, the Diamond Syndicate, source of over 90% of all gem diamonds, announced that it would for the time being suspend all offers of raw diamonds to the trade.* Observers sensed, in last week's announcement, the wily hand of Solly Joel, London tycoon and onetime South African miner, potent in Syndicate circles.

Thus from Amsterdam, Antwerp, London came the sound of many voices mourning the loss of a record Christmas buying season, blaming the recent stock market crash. In Manhattan, arose voices to differ with them. Authoritative among such voices was that of Walter N. Kahn, agile, dark president of the American Diamond Cutters Manufacturers Association, envoy from them to the U. S. Senate Finance Committee. Master diamond cutter is Mr. Kahn, able to instruct his many workmen to such good effect that diamonds cleave well, cut well, in trade parlance "run" well for him. Mr. Kahn blamed the unsettled state of the diamond tariff (TIME, Aug. 26). Ably he pointed to the gradual slump in buying since last summer, due to the retail hope for lower schedules. Happily he pointed to the accidental under-stocking that has allowed Manhattan jewelers to weather the storm. Confidently he predicted renewed buying by stock-shy investors of safe, eternally valuable precious stones.

*Fortnightly, for many years, the Syndicate has given "sights" or options on packets of assorted diamonds. Buyers have inspected the packets for "loupe-clean" diamonds--diamonds perfect under the jeweler's magnifying glass--have taken the "sights," have always redeemed them later in justified fear of syndicate displeasure.

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