Corpus Christi Caller Times Caller.com - Diamonds mean more than love

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Sunday, February 13, 2000

Diamonds mean more than love
Valentine sales show faith in economy

Since tomorrow is Valentine's Day, it only makes sense to consider what something cold and hard that looks like ice can tell us about how prosperous we are.
   U.S. retail diamond jewelry sales grew 9 percent in 1998, the most recent statistics available, according to the Diamond Information Center, which disseminates information for De Beers, the world's largest diamond mining company. The numbers for last year are expected to be at least as good, and as for 2000, "all indications are that it's going to be a very good year," says Joe Richardson, an account supervisor with the center.
   The Zale Corp., the nation's largest specialty jewelry retailer, has been doing even better, with sales up 13.3 percent last year, the company's third consecutive double-digit increase, and net earnings up 28 percent.
   And here's another indicator to ponder: The average price paid for a diamond engagement ring has reached $2,000, according to the Diamond Information Center.
   It's a good bet that when people spend that kind of money on something they can't eat, drive or take shelter inside of, they're feeling pretty sure about the source of their next several meals.
   'A quality mindset'
   "The consumers are in a good mindset right now," Richardson says. "They're looking to make meaningful purchases. A lot of them are turning to diamonds to do that.
   "I think there's also a quality mindset. Consumers are looking for higher-quality and larger stones."
   They are indeed exhibiting some large stones.
   Generous buying is going on in Corpus Christi, too, local jewelers say.
   Young professionals are spending freely, says Robert Racusin, owner of Robert's Jewelers downtown. He defines young professionals as twentysomethings to seventysomethings.
   "They're all doing good," he says. "We're seeing refinery workers. We're seeing bankers, lawyers, doctors, city employees, county employees. . . .
   "How can they afford it? You'd be surprised."
   'A pretty good mood'
   Local customers are buying bigger and higher-quality diamonds, says Denny Bales, owner of Susann's Custom Jewelers. And so he's stocking them.
   "We even now carry something we never dreamed of carrying," says Bales, whose store has been in business 18 years. "We have an 11-carat diamond on hand.
   "We've sold several five, six, as well as eight-carat diamonds. And if they'll buy an eight-carat diamond, they'll buy an 11-carat diamond.
   "We sold more two-carat total-weight diamond earrings in December than any in our history. That's a carat in each ear. That's $8- to $10,000.
   "What it tells me is the economy is strong and it tells me that people are in a pretty good mood and they're optimistic about what's going to happen in the future. And they're more willing to step up to something more expensive."
   A nice surprise
   Bales, like Racusin, says many of his customers are regular working joes and josephines. That's interesting considering that we're talking about an upscale jeweler. We're talking about a store that sells Rolexes. Remember that line from the movie "Glengarry Glen Ross?" ("You see this watch?" Alec Baldwin says. "That watch cost more than your car.")
   "You would think that the people who would be interested in something unique or higher-quality would be your doctor-lawyer-Indian chief," Bales says. "It's really across the board.
   "These people are no different from the people who have megadollars. Maybe they can't buy the quantity but they can buy the quality."
   It's nice to know that people are doing so well. And it's nice to know that their significant others are about to get a nice surprise.


Tom Whitehurst

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