The R&M “Lettre”

There are some current affairs that pass nobody by, and the Volkswagen scandal is one of them. What does it have to do with the diamond industry?

A review of US consumer expenditure on fine jewelry in the past year is sobering at best. Americans are spending a lot less on jewelry, and this is a near across the board trend.

Don’t be fooled by the pitch that touts shortage as a reason for investors to plough dollars into the diamond mining sector. In fact, like many other commodities in the world today, the diamond industry is also drowning in a supply glut.

Pop quiz: Rough diamond prices were reduced at Sight 7 by: 13%, 9% or 5%? If you examine the price list, you’ll see that the price of some goods decreased by as little as 2.5%, whereas others were cut by as much as 20%.

The return from the summer break has been anything but smooth. While the focus has been on the Sights, there are other issues, such as long-term trends, that are becoming clearer as we dive deeper into the current crisis.

Don’t be surprised if diamantaires are suddenly talking about Zhou Xiaochuan and Janet Yellen. The actions of the two – who respectively lead the People’s Bank of China and the U.S. Federal Reserve – may put additional pressure on diamond demand and ultimately polished prices.

Drawing its inspiration from the iridescent blue and the light in which the Indian city basks, the Jodhpur necklace, the key piece from the Bleu de Jodhpur collection, from Maison Boucheron, oscillates between innovation, exuberance and transparent effects.

From retailers in Middle America to jewelry manufacturers in India, from polishers in Israel to rough traders in Antwerp and miners in Africa – the global diamond industry seems tired, pessimistic and gloomy.

The rough diamond market is now at a tipping point and De Beers must reduce its prices by 10 percent to 20 percent if the miner has any chance of restoring its own growth prospects – never mind diamond manufacturing profit.

Far be it from us to suggest that you get married several times! But the beautiful wedding rings from the De Beers Jewellery collection would be worth the trouble…

Hallmarking, long used in precious metals, is being promoted as a means to differentiate diamond production as plans for industry-wide chain of custody standards are on hold.

De Beers will allow sightholders to defer as much as 25 percent of their supply at next week’s sight as rough diamond sales continue to slide.