Diamond Industry

The economy of the diamond industry untangled. Thorough analysis, granular data, and background on the diamond market. All this put in context with clarity.

What is the Diamond Industry?

In some ways, it is an industry just like any other despite the aura of an industry shrouded in mystery. It needs to satisfy consumer demand, promote the retail category, address technical problems, and secure financing to operate and grow.

It is also a unique one. It faces very certain expectations from consumers and governments alike. The modern diamond business is highly skilled and involves heavy use of technology and innovation. And yet, it is very traditional, relying heavily on a backbone of family structure, and it is highly fragmented compared to other industries.

Why is There a Diamond Industry?

It is human nature to desire to be decorated. Jewelry arose as a way to look better, to make a statement about who you are culturally, to declare your financial status, and to reveal your marital standing. Diamonds have been part of this storytelling for hundreds of years.

Ever since they were first dug along riverbanks in India and Brazil, the yearning for diamonds has grown to the point that a sophisticated value chain be developed to satisfy this demand. Although the iconic ”a diamond is forever” marketing campaign is no longer running, desire for diamonds remain high. Most people, of practically all ages and of nearly all cultures, still covet diamond jewelry. And most buy it too.

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

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

Expect Higher Diamond Prices This Holiday Season

Expect Higher Diamond Prices - Edahn Golan

Consumers should expect higher diamond prices as strong demand has been driving them up in recent months. After consumer retail purchases dropped in March and April, US retail activity surged in the summer months. This renewed demand includes jewelry and diamonds and is causing diamond prices to rise.

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De Beers’ Market Share Falls in 2019, Hides a Surprise

De Beers’ Market Share Falls in 2019 - rough sorting - Edahn Golan diamond Research and Data.jpg

After a year of pains, and in the midst of one of the most complicated years since World War II, De Beers’ market share sank in 2019. Not only De Beers, but ALROSA, Rio Tinto, and Petra all lost market share.

4

Diamond Production Dropped, Now It Is Nosediving

Diamond Production Dropped. This Is How It Nosedives - rough diamonds mining - Edahn Golan

Global diamond production sank 6.9% in 2019, the deepest plunge in a decade. By value, diamond production dropped 6.2%. There were good reasons for this, and the updated diamond production forecast calls for an even more significant slide in 2020.

6

Diamond Business Absorbs Blows

Diamond Business Absorbs Blows

The diamond business keeps suffering from declining prices and a decrease in consumer spend on jewelry due to COVID-19. Persuasive marketing can address underlying issues.

This Is How COVID-19 Impacted Jewelry Sales

This Is How COVID-19 Impacted Jewelry Sales featured

COVID-19 hit the world like a wild and destructive storm and the diamond industry was not spared. Following are the figures showing just how COVID-19 impacted sales, and how the tide is perhaps starting to turn.

The Rush for the Holy Grail: Cash Flow

The Rush for the Holy Grail Cash Flow - featured Edahn Golan

Diamond wholesalers, just as any other business owners in the COVID-19 era, need to jump start their business activity, and those that could did. The result was a mid-single digit drop in wholesale diamond prices in May. Polished Diamond Prices Tumble Seeking Cash Flow The desire to generate cash flow, accompanied by pressures to do so quickly, led traders to …

4

Polished Diamond Prices Edge Down in April

Polished Diamond Prices Edge Down in April

Conventional wisdom holds that trading in the diamond industry should have come to a complete stop in April. This is largely true, but there are some exceptions. Polished diamond trading has continued, though at a much reduced level. Prices naturally declined, down a low single digit. Jewelry stores in China are mostly open, and a good number of stores remained …

2

Diamonds in the Age of COVID-19

April 2020 webinar - Diamonds in the Age of COVID-19 featured image

Diamonds in the Age of COVID-19: The diamond market, from mining to retail, has changed dramatically under COVID-19. In a webinar given with AWDC, current diamond market dynamics, needed steps, a glimpse into the future, and our poll results were discussed. We covered a lot of ground.

The Golan Diamond Market Report – Q1 2020

Edahn Golan Diamond Market Report-Q1 2020 - Featured image

The Q1 2020 issue of the Golan Diamond Market Report reviews transaction polished diamond prices, changes in midstream inventory & demand, and updates on prices and demand in the LGD market. All that, plus an exploration of consumer attitudes.

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Ruin to Resurrection, the Perpetual Path

Ruin to Resurrection, the Perpetual Path - the diamond industry in the age of COVID-19 and after

The growing stream of bad news is threatening to engulf us like a depressing cloud of darkness, fueling a bleak outlook of ruin in the diamond industry. Yet, diamond jewelry demand has always re-surged as consumers sought solace and celebration. The following is a data-backed pep talk of resurrection.