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Anglo American, which completed the consolidation of its 85-percent stake in De Beers last year, has gained control over the world’s largest diamond mining company possessing unique assets, a distribution network and brands, one of which, “A diamond is forever,” is recognized as the most effective slogan of the 20th century.
In many respects, the contrast could not have been starker. Two vastly different diamond industry events took place this week, one in Dubai and the other in Ramat Gan, seemingly with different agendas and each reflecting different aspects of the trade.
The World Diamond Council (WDC) was established in 2002 to pool the efforts of the two pace-setting players in the global diamond market, the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA) for their team work within the Kimberley Process.
There is an increasing unease in the diamond trade that the banks are reducing their exposure to the industry. For a trade so heavily reliant on credit, the concern is justified.
India’s Gem and Jewellery Export Promotion Council (GJEPC) tends to set an ambitious agenda for itself. With around 5,300 members across India, the industry body is tasked with lobbying government, trade and consumers to ensure growth for the gems and jewelry sector.
Diamond business, like any other, is subject to cyclicality. All of us could see this clearly quite recently – from 2008 to the current year, 2013. The intensive growth of the world’s economy and Russia’s in particular, provoked an outburst of trade in rough and polished diamonds in the mid-2000s.
The Jewelers Vigilance Committee (JVC) was established in 1917, a bit less than a century ago, with a view to promote education and self-regulation in the U.S. jewelry industry.
As far as trade shows go, there are only a select few, among the many on the diamond and jewelry industry calendar, that tend to set the tone for the market.
You may have gathered over time, if you are foolish enough to read a few of my burbles, that I am not one to resist too strongly the odd glass of wine passing my lips.
The decision by the Chinese authorities to clamp down on advertising luxury products is a red flag for the diamond industry. While China represents the primary growth opportunity for the trade, the government’s restrictions are presenting hurdles even if its intentions may be pure.
De Beers’ profits for 2012 fell 49 percent year-on-year to just $506 million. The sharp drop in profit comes on as sales fell 16 percent to $6.1 billion. Rough diamond sales decreased 15 percent to $5.5 billion.
Harry Winston Diamond Corp’s sale of its luxury brand to Swatch Group is the most significant step yet taken by this rapidly evolving company. Essentially, the deal marks the end of Harry Winston the mining company, as the brand returns to its luxury roots, and the mining business is renamed Dominion Diamond Corporation.