He gives a dramatic example of the enormous appetite Chinese buyers have for pearls from the annual – and highly anticipated – Robert Wan pearl auction, which takes place at the Hong Kong show in September.
“He held an auction when we were in Hong Kong, and the night before a Chinese guy came and bought the entire Robert Wan auction,” says Sethi. “The auction was cancelled.”
Sethi says that multicoloured Tahitian pearls in 9-11mm and 10-12mm necklaces were going for $40,000 wholesale. “But in March they were $10,000, $12,000, $14,000.”
The current dynamic is unsustainable, says Sethi. “Right now there are no pearls to sell and no pearls to buy.”
“The bottom line is that the whole pearl industry, the farmers and the manufacturers, are in seventh heaven,” he says. “I’m happy because I’ve sold a lot, but I’m not happy because we can’t buy anything. It’s going to be a very difficult last quarter and into next year. Demand is not slowing down.
Sethi advises retailers to manage their expectations accordingly. “We have a sad story – we have to tell people we can’t supply them,” says Sethi. “We were selling 8mm pairs of Tahitian pearls for $500 retail a pair, and now the price is going up to $800 to $1,000 retail a pair, and we don’t have the supply.
“My suggestion to all retailers is to look at their suppliers and if they have older stock and they’re willing to sell at old prices, don’t even blink – grab it,” he adds. “Once that stock is gone, supply is going to be very tight unless the Chinese market does a 180. It’s madness.”
Elite white South Sea pearl drops (13-14 mm) in 18-carat white gold with 1.88 ct. ww. diamonds, $4,095; Tara Pearls
