Diamond Industry - Page 6 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:

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What is the Price of a Diamond?

What is the price of a diamond? Diamond polishing

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, …

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Sight Okay, Retail Not at All

Sight Okay, Retail Not at All - Gem Diamonds

De Beers finally got the message and lowered Sight prices. Retail sales were worse than previously stated and the future does not look bright.

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Sightholders Begin New Contract Period Cautiously

Smallish Sight Expected as 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. The first Sight of the 2015-2018 Global Sightholder Sales (GSS) contracts will …

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Jewelry Expenditure Rises amid Stunted Growth, Millennials Stepping Off the Plate

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, …

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Rethinking the Diamond Model

Rough diamond sorting - De Beers

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.

Refusals, Strops, Contracts and Conspiracies – A Rough Market Review

Refusals, Strops, Prices, New 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 …

The US State of the Jewelry Market Report

US Market report jewelry diamonds consumer expenditure

Millennials spend more on jewelry than any other age group Age group between 25-34 spent 28% more than average household Consumers are buying more jewelry but at a lower price-per-piece Fine jewelry sales in the US reach $68.8 billion Watch sales reach $9.13 billion, increasing 7.7% Buying season spans throughout the year, with sales during traditional holiday season dropping 1.2% …

What Do The Weak Hong Kong Shows Say About Our Future?

Hong Kong Show weak, diamond prices current

There were very few smiling faces on the way out of the March Hong Kong trade show. The few people that did express a positive sentiment were either oblivious to the outcome of the shows or simply happy to see a familiar face they had not seen in a while. The social aspects of all trade shows are important, but …

Indian Diamond Companies Improve Cash Flow

IIJ Feb 2015

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.