Economic indicators for the US jewelry market are showing a long term downward trend and price is not the reason for lost consumer demand.
Diamond Business - Page 6 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:
What is the Price of a Diamond?
Not too long ago, I posted a question on Twitter, asking people what they thought was the average price of a diamond. Specifically, I wondered how much, in informed people’s opinion, was the average wholesale price per carat of polished diamonds. Just for fun, pick a figure before reading on, and keep it in mind. In response to my question, …
Sight Okay, Retail Not at All
De Beers finally got the message and lowered Sight prices. Retail sales were worse than previously stated and the future does not look bright.
Sightholders Begin New Contract Period Cautiously
On Monday, 84 Sightholders and two will begin attending the first Sight of the new contract period – but quite cautiously. The Sight is not expected to be very large, around $400 million, because Sightholders opted to start the contract by scheduling fewer goods for the upcoming Sight. Why Are Sightholders Acting Cautiously The first Sight of the 2015-2018 Global …
Jewelry Expenditure Rises amid Stunted Growth, Millennials Stepping Off the Plate
According to a new survey of the US consumer market, even though Americans increased fine jewelry and watch purchases in 2014, the rate of growth declined. This reaffirms other indicators that while 2014 was a year of growth, it was a stunted growth. According to the 2014 Mid-Year Consumer Expenditure Survey, in the period between July 2013 and June 2014, …
Rethinking the Diamond Model
Sometimes, connecting figures in ways in which they are not usually put together can highlight a great truth – a truth hiding in plain sight. Most people who follow the diamond industry already are familiar with the following figures. Yet what they disclose in this context is perhaps new and may require rethinking the diamond model.
“Less for More” Turns into “More for Less”
After the 2008 financial crash, a De Beers research study found that consumers continued to spend during the holiday season, but more cautiously. They bought fewer items, yet were willing to spend more per item – if it had long-lasting value. They called this trend “less for more,” and consumers were indeed willing to buy nice diamond jewelry items. The …
Refusals, Strops, Contracts and Conspiracies – A Rough Market Review
In a way, there were no surprises this past week, and that in itself should be a surprise. De Beers offered a large rough diamond supply to its clients – at slightly higher prices – and the market just could not digest it, leading to many refusals. Why did the miner offer so many goods in an overloaded market? Why …
Jewelry Purchases, the Education Factor
Because education is an important factor in creating the ability to generate higher earnings, it is not surprising that people that have not graduated from high school spent the least on fine jewelry purchases and watch buying when comparing expenditure by education. Based on the latest consumer expenditure survey of US households, those that have not graduated from college spent …
The 2015 US State of the Jewelry Market Report
Discover one of the first in-depth analyses of the U.S. jewelry market, covering consumer buying habits, jewelry sales, Millennials’ spending patterns, retail market share, seasonal demand, and industry trends. Based on extensive market research, the report examines who buys jewelry, how much they spend, where they shop, and how purchasing behavior is reshaping the jewelry industry. A valuable resource for jewelers, diamond companies, manufacturers, retailers, investors, and market analysts seeking data-driven insights into the U.S. jewelry market.