Diamond manufacturers adjusted their operations to the current low and declining loose diamond prices and high rough diamond prices. In the backdrop are fixed overhead costs and costly financing, according to traders.
Diamond Business - Page 7 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:
Interview with Rubel & Menasche
In an interview for Rubel & Menasche, The Old Days Are Gone, A New Way Of Doing Business Is Here, Edahn discusses how lab-grown, transparency, Amazon’s low price-point jewelry, Anglo American’s takeover of De Beers, and high retailer fragmentation are influencing the diamond industry today. A few excepts: Lab Grown Lab-grown diamonds are an interesting concept, among other things because …
De Beers’ Sales +11% in 2014
De Beers‘ results were announced this morning. The diamond mining company saw a sharp rise in sales, helped by a jump in average price per carat on its rough diamonds. De Beers’ Results Summary Sales: $7.114 billion (+11%) Carats sold: 32.73 million carats (+5%) Underlying EBITDA: $1.818 bln CAPAX: $689 million Return on CAPEX: 15% Highlights from the 2014 financial …
It’s Official: Specialty Jewelers’ Sales Crashed This Holiday Season
American specialty jewelry stores generated $8.87 billion in holiday sales this past November-December Holiday Season, a 4.7% decline compared to the 2013 Holiday Season.
Rio Tinto’s Diamond Sales +5.8% in 2014
Rio Tinto had a good year in diamonds. A strong rise in rough diamond prices have led to an increase in Rio Tinto’s gross revenue from diamonds in 2014 despite a sharp drop in diamond production. Gross revenue increased to $901 million, up 5.8% from $852 million in 2013. In 2014, the company mined 13.87 million carats, a 13% year-over-year …
Specialty Jewelers’ Sales Tumble in November
November 2014 sales by specialty jewelers in the US declined 7.1% year-over-year to $2.73 billion, based on preliminary figures from the US Bureau of Labor Statistics.
Large December Sight
As expected, De Beers has an uncharacteristically large December Sight. According to early estimates, the Sight this week offered ~$650 million worth of rough diamonds. There was very little ex-plan reported and box assortments are leaning towards smaller size goods, which possibly explains the somewhat lower prices. The large rough diamond supply at the December Sight follows a characteristically smaller …
ALROSA Returns to Dubai
ALROSA has reopened its ARCOS East DMCC sales office in Dubai in November after suspending activity in the emirate during the market downturn in 2009. In a press release published today, ALROSA said the decision to reopen is connected to the rapid growth of Dubai as a global diamond-trading center. Among the Russian diamond miner’s goals for the Dubai presence …
Rough Diamond Market Report: Subdued Market Ahead of Diwali
Even with a very small supply of rough diamonds from the major diamond suppliers De Beers and Alrosa during this diamond cycle, premiums in the secondary market were so low that in some categories it meant selling at a loss for the first hand buyers – the Sightholders and Alrosa clients. There are several reasons for this, the upcoming Diwali holiday …
