The R&M “Lettre”

Let’s start with the bottom line – U.S. retailers need to pay more for the jewelry they are selling, and don’t get that much more when selling it.

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.

Diamond industry analyst Chaim Even-Zohar of Tacy Ltd opened the afternoon session of the final day of Israel Diamond Week with a presentation on the ‘State of the International Diamond Industry’.

Dubai is actively working to position itself to replace Antwerp as the rough diamond-trading center of the world.

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.

When talking about the future of the diamond industry, we are usually directed to expected growth in demand from China and India, as well as the continued leadership of the U.S.

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.  ‎

The outlook for the diamond industry suggests that market fundamentals are set to grow increasingly attractive. Harry Winston Diamond (TSX:HW,NYSE:HWD) said in its fact sheet for the third quarter of the 2013 fiscal year that demand for rough diamonds will exceed supply, while rough diamond supply will be constrained for the next seven to 10 years.

The world is in constant flux, and nothing remains static. Diamond centers, just like other kinds of trade centers, are constantly shifting. Amsterdam long ago lost favor to Antwerp, which enjoyed the benefits of Belgium’s rule over Congo.

I’m sure our readers can’t failed to have noticed the scandal involving horse meat being passed off as beef, which began in Britain, but is slowly engulfing the rest of Europe and indeed the world, although in South Africa no horse was found but they did discover traces of water buffalo, goat and donkey.

The most recent De Beers sight closed with an estimated value of $550 million as the company adjusted assortments to reflect higher values in its boxes.