In reaction, Martin Rapaport said that “the market always responds with shock to a fall in prices. The company had received strong responses from people who think that the prices should not have gone down. We check the prices of the under 1 carat diamonds carefully. If there has been an error, it will be corrected.” Rapaport added that meetings are being held with diamantaires and that “we are sensitive to the market and to those involved in the market; and we are building improved communication channels with traders of this type of merchandise”.

Rapaport list published last weekend an average reduction of 5% in the prices of diamonds in the 10 – 90 point range surprising and disappointing the Diamantaires at the same time. Many diamantaires expressed discontentment and a large group of diamantaires signed a petition against the reduction. An emergency meeting was held at the Rapaport office, attended by leading diamantaires who handed the petition over to Rapaport on January 23, 2006.

“Despite the great demand for VVS and SI, and the expectation of price increases in this category, Rapaport decided to reduce the price,” said Ilan Samuel of Samuel Rozenbaum and a board member of the Israel Diamond Exchange. He added that among the scores of diamantaires he spoke to, many were concerned that the drop in prices could cause irrevocable damage to their business. A senior diamantaire said, “Rapaport wants to announce his presence, and therefore he is shocking the market. A way must be found to prevent Rapapot from being a monopoly.”