Diamond Industry - Page 7 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:

De Beers Sales +11% in 2014

Rough diamond sorting - De Beers

Anglo American announced its results this morning and with it De Beers‘ results: 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 report: De Beers’ underlying EBIT increased by 36% to $1.4 billion (2013: $1.0 billion). The increase was due primarily to solid demand across …

Rio Tinto’s Diamond Sales +5.8% in 2014

Rio Tinto’s Diamond Sales +5.8% in 2014 The Argyle Pink Jubilee Diamond

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 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 decrease. The decrease coincides with the move from open-pit …

Japan’s Diamond Imports in 2014: Less for More

Japan's Diamond Imports in 2014: Less for More

Japan’s polished diamond imports edged up in 2014, however, the quantity of diamond imports by carat has declined, according to data recently released by the country’s ministry of finance. Japan is one of the world’s four largest diamond-jewelry consumer markets. In 2014, Japan’s gross polished diamond imports totaled $888.6 million, up 1.6% over the prior year. The average value of imports …

Large December Sight

Sorted rough in bags. Photo: De Beers

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.

ALROSA Returns to Dubai

Palm 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 …