Diamond Business - Page 3 of 7

A constant examination of the global diamond business from mining to retail. Using industry data and analytics, it is explained in context with clarity.

What is the Diamond Industry?

The diamond industry is a fascinating sector, with a rich and, at times, controversial history. To satisfy global consumer demand for diamond jewelry, the diamond industry invests in exploration and has developed new ways to extract diamonds from the ground.

It employs sophisticated ways to assess rough diamonds without the need to first cut them open, and has developed state-of-the-art technologies to plan diamond polishing. In addition, the industry has sophisticated ways to grade diamonds, and a complex way for determining a diamond’s value.

The diamond industry also includes design and jewelry manufacturing. Some are ultra-modern, and others very traditional. In all cases, they address consumer demand and tastes.

Are Diamonds Expensive?

Diamonds come in all sizes and clarities, and in many colors. The rarer a diamond, the higher is its value. Some are very pricy, and some are less so. There is a diamond for every budget.

Along the value chain, miners, polishers, jewelry makers and retailers do not have a wider margin than their counterparts in other sectors.

Surprised? Read the following insight posts and reports to learn more about the economics of the diamond industry.

What Are the Components of the Diamond Industry?

The diamond industry includes:

  • Exploration
  • Mining
  • Rough diamond sales
  • Diamond polishing
  • Polished diamond wholesaling
  • Jewelry making
  • Retailing
  • Consumer demand

The following posts provide insights into how exactly the diamond industry works, the ways miners sell rough diamonds, how diamond polishers tackle changing demand in a lengthy polishing process, and the financial issues that all parts of the diamond industry face.

For a deeper look into this topic, please see below:

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LGD Prices – Not What You Might Expect

LGD Price list grid LGD Prices – Not What You Might Expect

After a very long period of slow development and use, we are now at the stage where a walloping leap occurs as market adoption of lab-grown takes place. After an initial 30-40% drop in wholesale prices, prices of LG goods below 1-ct keeps falling, while larger goods are steady. Oh, and there is a LGDs transaction price list!

Although Sliding, Jewelry Retail Prices Remain High

Although Sliding, Jewelry Retail Prices Remain High

After reaching a historic record high in 2017, consumer prices of fine jewelry have softened so far in 2018. However, jewelry retail prices are still high, which may explain a number of consumer trends. Are these prices fueling demand for lab-grown? We know that the US market is very price sensitive, and that dictates polished diamond prices, as well as …

The US Jewelry Market Is Much Smaller Than You Think

The US Jewelry Market Is Much Smaller Than You Think - Edahn Golan

Anyone who has ever done a back-of-the-envelope calculation of the US fine jewelry market in the past few years arrived at figures that were far below the official numbers published by the US government. The differences were so wide that the government figures were downright puzzling. Recently, the US government has revised ten years of market estimates, dating all the …

Lightbox: Disrupting the Disruptors and Evolving

Disrupting the Disruptors and Evolving - featured

De Beers announced the launch of a lab-grown (LG) diamond jewelry line. Yes, it’s late in May, not April 1, but this is no joke. In September, it will launch Lightbox, a line of jewelry priced between $300-$1,000. They are fighting the LG producers by using an age-old Silicon Valley approach – disruption. They are disrupting the disrupters. The strategy …

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Baselworld 2018 and the Marginalization of Diamonds

Baselworld 2018 and the Marginalization of Diamonds

Many years ago, a De Beers director quietly admitted to me that even if all the marketing efforts were working well and diamond sales were on the rise, the diamond industry would still not catch up with the luxury market and would continue to lose market share to it. If Baselworld is telling the industry anything, it is that the …

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US Diamond Trade: The Figures Reveal Oddities

US Diamond Trade: The Figures Reveal Oddities - featured image

Diamond import and export figures can tell a story, and a good story sparkles with oddities. Good stories start with facts that raise questions. In this case, the question is why a consumer market would import eight times the amount of diamonds it consumes. Or how a country with no diamond mining might export more rough than it imports. Polished …

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Marketing, Sure – But of What Kind?

Marketing, Sure – But of What Kind? - featured

If there is anything that the diamond industry is famous for, it is its marketing. Turning a rare and out-of-reach product into an attainable household desire was a brilliant success, and the marketing slogan “A diamond is forever” is one of the best ever penned. Yet today, the diamond industry is suffering from dismal marketing that has toppled all the …

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The Scary Stuff Nightmares Are Made Of

Growing Demand for Lab-Grown and the Scary Nightmares it Induces

For years the diamond industry’s outward attitude to lab-grown goods was that these stones were some sort of fake. Even the nickname given them expresses that disdain – “synthetics.” Yet underneath this expression of disrespect lies a deep sentiment, a real feeling that one can almost smell – a mixture of contempt and deep fear. Don’t balk because that fear …

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How Lab-Grown & Brands Are Improving the US Jewelry Market

How Lab-Grown & Brands Are Improving the US Jewelry Market - featured

As we head to the Las Vegas shows in a few days, it’s worthwhile looking at the US jewelry market and the brands in order to understand what it’s going through today. The changes are many: some of them are slow-moving, whereas others are fast paced. Some changes have even slipped by almost unnoticed by many, but all of these …

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Global Diamond Production Decreases 4.2% in 2015

The Lesson of Sight 8: No Need for More Rough - featured

In 2015, 127.4 million carats of diamonds were mined around the world, a 2.1% increase compared to 2014, according to just released Kimberley Process figures. The value of global diamond production decreased 4.2% to $112.3 billion. The average value of production fell 6.2% to $108.96 per carat. Russia is by far the largest diamond producing country by volume and value. In …