Sripriya Yarlagadda and Olga González explore how a newly available tool helps jewellers to competitively price their diamond inventory in real time. Read the original article article in the latest issue of Gems & Jewellery magazine, Gem-A’s member publication.

The diamond industry, historically known for its exclusivity, undergoing a transformation thanks to innovative technology platforms such as Liquid Diamonds. At the forefront of this revolution is the company’s Pricing Co-Pilot, a cutting-edge tool designed to help jewellers optimise their pricing strategies, enhance inventory turnover and maximise profits. In an ever-evolving diamond trade, the Pricing Co-Pilot offers a much-needed solution for both suppliers and retailers in an increasingly competitive landscape. Liquid Diamonds, a New York-based company founded by Kashyap Mehta and Mark Molloy in 2017, taps into decades of diamond industry expertise merged with advanced technological development. Mr Mehta’s unique background, combining both software and game development with a deep family history in the diamond business, helped shape this vision. “Growing up, conversations at the dinner table often revolved around the challenges in the diamond trade that were holding it back from its true potential,” Mr Mehta explained. “Our goal is to democratise the diamond industry, making it as efficient as sectors like auto, finance and pharmaceuticals. By enhancing transparency and liquidity, we aim to attract substantial financial capital and restore consumer trust in a traditionally opaque industry.” Mr Molloy was instrumental in the early stages of the platform’s creation. A brilliant man who held thirteen patents across multiple fields, his vision for price discovery in the diamond market helped bring the platform to life. Although Mr Molloy passed away in 2020, Liquid Diamonds continues to honour his legacy.

A GAME CHANGER FOR JEWELLERS

The key offering from Liquid Diamonds, the Pricing Co-Pilot, addresses one of the diamond industry’s biggest challenges—finding the right balance between inventory turnover and profitability. Traditional pricing strategies often pit speed of sales against margins, forcing retailers to choose between the two. The Pricing Co-Pilot seeks to eliminate this dilemma by leveraging real-time data and market trends to help jewellers optimise both their turn and margins. “Our Pricing Co-Pilot uses artificial intelligence (AI) to help diamond suppliers price their diamonds accurately based on market trends,” Mr Mehta noted. “This tool empowers suppliers to price their inventory competitively, leveraging real-time market data to drive more efficient sales.” The tool uses a patented auction technology that brings real-time price transparency to the market. Instead of relying on opaque pricing methods and lengthy negotiations, jewellers can now adjust their prices quickly and accurately based on live market conditions. This allows these jewellers to stay ahead of competitors, ensuring they never miss a sales opportunity.

Understanding the Market with Real-Time Data.

What makes the Pricing Co-Pilot so powerful is its ability to evaluate each individual diamond in a jeweller’s inventory. Using specific criteria—such as carat weight, cut, clarity and colour—the tool compares diamonds against similar stones on various platforms. This ensures that the jeweller always has a clear understanding of where their inventory stands in the marketplace. “Traditionally, the diamond industry has operated on personal relationships and opaque pricing structures,” Mr Mehta notes. “This lack of transparency led to inefficiencies in price discovery and limited access to capital. Our platform is changing that by offering real-time price visibility and creating an open marketplace where buyers and suppliers can interact directly.” One of the standout features of the Pricing Co-Pilot is its automated price adjustment notifications. These alerts are triggered when there are shifts in the market, such as increased competition or changes in demand. By notifying jewellers in real time, the tool allows them to adjust prices quickly, ensuring they remain competitive without the need for constant manual monitoring.

The Pricing Co-Pilot ensures that each diamond is priced to sell, reducing the amount of time inventor
sits unsold…

ADVANTAGES FOR JEWELLERS

Time-Saving Capability.

Pricing diamonds manually and reviewing prices regularly can be a labour-intensive process. The Pricing Co-Pilot automates this task, allowing jewellers to focus on other essential aspects of their business, such as customer service and marketing.

Increased Profitability.

By providing real-time market insights, the tool helps jewellers optimise pricing to maximise margins without sacrificing turnover. This results in a more profitable business, as diamonds sell faster and at better prices.

Improved Inventory Management.

Slow-moving inventory can tie up valuable capital. The Pricing Co-Pilot ensures that each diamond is priced to sell, reducing the amount of time inventory sits unsold and freeing up capital for new stock. Mr Mehta highlighted how this approach helps jewellers in the United States who often struggle to access the volume discounts available to larger wholesale buyers. Smaller suppliers, especially diamond cutters and polishers in India, also benefit as they typically lack access to global markets. By addressing these challenges, the Pricing Co-Pilot fosters a more equitable diamond industry.

OVERCOMING INDUSTRY RESISTANCE

Integrating new technology into a traditional industry like diamond trading is no small feat. Mr Mehta admitted that their journey was not always smooth. “We initially overestimated our understanding of the market and over-engineered our product, facing resistance from the traditional diamond and jewellery traders,” he recalled. “However, we discovered that our platform’s ability to constantly monitor smaller suppliers offering the best deals was a key differentiator.” Despite the initial pushback, Liquid Diamonds has facilitated over $50 million (£37.38 million) in transactions, primarily between New York wholesalers and Indian manufacturers. With the Pricing Co-Pilot gaining traction, the platform is poised for continued growth.

Shaping the Future of Diamond Trading.

As the diamond industry continues to evolve, Liquid Diamonds is not resting on its laurels. The platform is constantly being updated to stay ahead of industry trends, including rising consumer demands for sustainability and ethical sourcing. “We ensure that all diamonds on our platform meet stringent certification standards, including compliance with the Kimberley Process,” Mr Mehta confirmed. “We are also evolving our platform to support smaller, are focused on meeting these new demands from socially-conscious consumers.” With plans to expand partnerships with jewellery retailers in the U.S., Liquid Diamonds is committed to democratizing access to diamonds. The company’s goal is to create a seamless experience for all users, from suppliers to retailers, while continuing to drive innovation in a traditionally slow-to-adopt industry.

LOOKING AHEAD: THE FUTURE OF LIQUID DIAMONDS

The road ahead for Liquid Diamonds is full of opportunities, as Mehta and his team focus on scaling the business. Educating traditional players about the benefits of adopting new technology remains a challenge, but Mr Mehta is optimistic about the future. “Our focus is on delivering value to every customer,” he said. “Once we reach a critical mass– estimated at $250 million annually – network effects fully kick in, drawing more buyers and suppliers.” By leveraging the Pricing Co-Pilot, Liquid Diamonds is not just optimising the diamond trade; they are reshaping it for the future. With groundbreaking technology, transparency and a customer-centric approach, Liquid Diamonds is paving the way for a more efficient and accessible diamond industry.

Discover more about Liquid Diamonds at www.liquid.diamonds.com