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 …
Diamond Business - Page 4 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:
- Rough diamond sales
- Diamond polishing
- Polished diamond wholesaling
- Jewelry making
- 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:
Global Diamond Production Decreases 4.2% in 2015
Diamond production in 2015 had mixed results. According to just released Kimberley Process figures, 127.4 million carats of diamonds were mined around the world, a 2.1% increase compared to 2014. The total value of production decreased 4.2% to $112.3 billion. The rise in volume and decrease in value resulted in a decline in the average value of production. Prices fell …
Be Real, Maintain Price, Don’t Be A Clone: Viva Las Vegas
While clearly better than last year’s show, the recent JCK Las Vegas trade show proved that the fine jewelry industry is still far from being out of the cold. Diamond booths were surprisingly busy, and it seems that generally the industry is making strides to combat some of its main issues: generic marketing and lab-grown goods. Exhibition Business – Jewelry …
The Lab-Grown Consumer Numbers You Need to Know
For several years, the diamond industry has been grappling with the introduction of gem-quality lab-grown goods to the consumer market. However, even with all the talk, one essential component seems to be missing – hard numbers. Just how many such items were bought by consumers, in what sizes and shapes, in what sales patterns, and most importantly, what do they …
Resurrection: Fine Jewelry Sales Rise 1.1% in 2015
Fine jewelry sales in the US totaled $66.5 billion in 2015 after consumers rediscovered jewelry in the fourth quarter, leading to a resurrection in demand. After a well felt slump, mostly among diamond suppliers, interest in fine jewelry sparked trade throughout the diamond pipeline. Fine Jewelry Sales +1.1% Fine jewelry retail sales in December totaled $12.7 billion, according to our …
Deconstructing De Beers’ $540M Cycle Sales
De Beers announced on Tuesday that the total value of rough diamonds it supplied during the first sales cycle of 2016 was $540 million. This number, and the context in which it was revealed, requires some explanation. It is not the value of the Sight, but rather that and beyond. Just what does this number include? Basically, all the rough …
Fine Jewelry Sales Up, Rough Prices Down, Optimism Ensues (Unjustly)
Fine jewelry sales in the US posted a rise in November, and there are signs that December was alright too. In the last couple of weeks of December, Mumbai diamond traders had a sudden rise in sales, both from the US and China, leading to a burst of optimism that drove demand for Sight goods. De Beers in turn lowered prices …
This is the Lost Year in Rough Diamonds
What a horrible year it was. Miners, traders and retailers will remember 2015 as the year of lost capital, walking on the cusp of bankruptcies, lost opportunities and diminishing value of diamonds. How did it happen, could it been avoided and what lessons can be drawn from it – short term and long? The Last Cycle of 2015 – Sight …
An Illustrated Guide to Cause & Effect
If the cause is declining consumer share of wallet, then the effect is a sharp drop in rough sales. This means that we can expect rough diamond price reductions, fewer goods purchased at the December and January Sights, and bank financing to continue to be difficult. To visualize the poor state of affairs of jewelry demand among American consumers, examine …
Waddling Forward, Will Sight 9 Total Less than $100 Million?
A quick note before Sight 9 – it’s going to be small, but it will take place. De Beers is adapting to the market, or as some may say, they are playing it by ear. The company is trying to meet the changing needs of its clients. Sadly, these changing needs seem mostly like detrition. According to one definition, detrition …