For years the diamond industry’s outward attitude to lab-grown goods was that these stones were some sort of fake. Even the nickname given them expresses that disdain – “synthetics.” Yet underneath this expression of disrespect lies a deep sentiment, a real feeling that one can almost smell – a mixture of contempt and deep fear. Don’t balk because that fear …
Diamond Industry - Page 4 of 7
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:
How Lab-Grown & Brands Are Improving the US Jewelry Market
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 …
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
Who is the lab-grown consumer? 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 …
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 Improve, Rough Prices Down, Optimism Ensues (Unjustly)
Fine jewelry sales improved in the US, posting 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 …
This is the Lost Year in Rough Diamonds
It was the lost year for the diamond industry, and 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 have been avoided, and what lessons can be drawn from it, short-term …
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 …