Perhaps De Beers’ new venture into secondhand diamond dealing is, as it claims, simply a way to learn more about the diamond trade-in market. But setting up a four-person lab in New York City, a website, and fledgling distribution network (involving 15 doors), is a pretty elaborate way to research something.
[two_third]The new venture, called the International Institute for Diamond Valuation (IIDV), was seemingly telegraphed by CEO Philippe Mellier at the De Beers forum at the JCK show in Las Vegas. When asked about possible threats to consumer confidence, he — rather surprisingly — said secondhand buying. If consumers don’t receive good value for their diamond trade-ins, he explained, that will shake their confidence in the product and industry.[/two_third][one_third_last]
“In the last few years, an estimated $1 billion in diamonds have been sold secondhand.”
So this is the company’s response. De Beers has said that it simply wants to research, and possibly reform, the diamond trade-in business. But it wouldn’t likely do this if it didn’t see a business model there.
[two_third]In the last few years, an estimated $1 billion in diamonds have been sold secondhand — and that number will likely grow as the population ages. (Martin Rapaport has declared that the biggest diamond mine may be in Florida.) But every recycled diamond represents one less sale from De Beers’ mines. Some have even called trade-ins a threat to its business model. Now it has come up with a way to get a piece of the action.[/two_third][one_third_last]
“However, if this business takes off, it could even start its own recycled diamonds line. (…) The 2014-model company clearly wants to go where the action is, and that is close to the consumer.”