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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:
- Rough diamond sales
- Diamond polishing
- Polished diamond wholesaling
- Jewelry making
- Consumer demand
For a deeper look into this topic, please see below: