Evening Republican, Volume 22, Number 282, Rensselaer, Jasper County, 22 November 1919 — DIAMONDS GO UP ON EUROPE MART [ARTICLE]

DIAMONDS GO UP ON EUROPE MART

Intwerp Clubs Reveal Efforts of Germans to Control . Gem Trade. MONEY DEPRECIATION HELPS Wen of Wealth, Nervous as to Financial Outlook, Buy Diamonds instead of Securities Because the Safest Investment Antwerp.—Antwerp Is In the throes >f a “diamond fever” such as has lever been known anywhere before. Not less than six "diamond lave In the last three nonths. i These are “clubs” only In-name, for hey have bottling of the usual com'ortable accommodation generally astoclated in our minds with such inititutlons. Their main feature is a arge room filled with rows of small rard tables. The room looks for all ■Jie world like a card playing estabi ishinent. • I It is the guests, however, who pre- ; .ent the strangest appearance. There ire smart young meh dressed in the ! atest styles, and important looking ■ nen bearing the unmistakable mark if thp stock exchange habitue anil pemliar old men with long' beards and lolled linen and ancient Prince Albert mlts all mingled together and driving bargains among themselves at figures hat would rejoice any banker even in America. Handling Diamonds. i Two by two they sit, opposite each, dher at the little green tables, careessly fingering handfuls of uncut-dia-nonds they were common poker •hips. , The conversations ate' pretty much I he same all over the room : “How much did you pay for this ot ?” • L__ ; : g . ...... I “Two hundred thousand crowns."— "All right; I’ll buy it with 8 per ent profit for you." “Done.” And thy money Is handed over at ince in cakh. Then the seller looks tround and having nothing better to 10. leans over the shoulder%f an ac- ' (ualntance at another ' table, driving mother bargain. And the gambler 'ever gets him again and he feels lorry he has sold. So he buys andher Jot and sometimes he buys back he very one he has sold. Thus ‘ the 'prices tire 'pushed - tip 'Ter his extraordinary “diamond ex•hange" of tlie world. One of the oldest firms has given he following figures concerning dla,uond- prices; \ - ~ Before the war the uncut stone cost ;23 a karat and $32 after cutting. I mmedlately after the declaration of vttr the price slumped to $23 and renatned that low as long as 1915, when he Germans, beginning to get nervius about the value of paper, money, j tarted buying all the diamonds they I ould find on the market. ! France. Switzerland. Italyand Eng- ! find followed suit, and the price went hp by leaps and bounds. On the eve T the armistice the karat was worth ITO and fell again to $34 within a ew weeks of the cessation of hostilties.

Since the beginning of the year the Ifamond market has boomed, owing o the general depreciation of Euro>ean money, the difficulty of exchange tnd the embargo on export of currenles from one to another European •ountry. Demand Is Heavy. Today a karat of uncut stone finds tn easy market at $l5O. Merchants •eed no longer seek customers. Credt is no longer given." As soon as a lew consignment from Lonlon the dlfctnond clubs are filled to krerflowing and the bidding starts

vHth unheard of zest. Many accounts are settled In America, and even there merchants prefer to be paid in -kind nrthvrthan In money. 1 1 seems certain that the price of dlamiuvls will continue to rise until the economic condition of the world is better balanced than at present. In every country there is an astonishing number of rich men who are still very nervous as to the financial outlook, especially In relation to possible labor troubles. These men do not buy securities and do not keep large bank balances. They buy diamonds because they know they are tlie safest investment and the easiest to transport. The fact that Gormans have been the heavrest purchasers of cut and uncut stones since 1915 Is beginning to worry the allies who find in it the explanation of the apparent optimism shown in Germany as to the economic ■future of the country. It is said that the greatest supply of diamonds in the world is now safely stored by Germans who, when they choose, are In a position to command the market.