What an unusual period we are in. Looking back a month, everything appears to be upside down. Rough diamond imports were out of sync: values were up, but not volumes. Polished diamond exports ahead of JCK were lopsided. Polished diamond prices eased instead of rising, but rough prices increased. Are these signs of a normal market, or of a diamond …
Diamond Manufacturing - Page 2 of 2
The economics and activities of diamond manufacturing. A sensible place to start a background journey into the midsection of the diamond value chain.
What is Diamond Manufacturing?
It is the series of actions that transform a rough diamond into a polished diamond ready to be set in a jewelry item. It is an activity that not only transforms a rough stone into a polished diamond, the transformation process is also where the most value is added to a diamond.
The polishing process takes place in the midsection of the diamond value chain, commonly referred to as the midstream. Here is the place where knowledge, skill, and cutting edge technology come together, and are of the outmost importance for the diamond value chain.
What Happens in Diamond Manufacturing?
Diamond manufacturing involves:
- Rough diamond purchasing
- Rough diamond assessment
- Sophisticated technological tools
- Cutting
- Polishing
- Grading
- Wholesale of polished diamonds
Where are Most Diamonds Manufactured?
The majority of diamonds are polished in India. Manufacturing also takes place in Belgium, Israel, China, and Thailand.
Issues Related to Diamond Manufacturing
This section of the diamond value chain is not just the key transformation spot for diamonds, it is also the most vulnerable part of the diamond value chain. It is heavily reliant on complex financing and suffers from the thinnest margins of all sections of the diamond industry.
It also bears the greatest risk. Diamonds can break during the polishing process. The thin margins and difficult profitability means that business and can easily fall into losses. Most manufacturers are in a volume business, which does not lend itself to improved profitability.
For a deeper look into this topic, please see below:
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 …
Sightholders Don’t See Relief in Sight
Pop quiz: Rough diamond prices were reduced at Sight 7 by: 13%, 9% or 5%? If you examine the price list, you’ll see that the price of some goods decreased by as little as 2.5%, whereas others were cut by as much as 20%. One report may have been based on a simple average of the discounts and came close …
Rethinking the Diamond Model
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.
The 2015 US State of the Jewelry Market Report
Discover one of the first in-depth analyses of the U.S. jewelry market, covering consumer buying habits, jewelry sales, Millennials’ spending patterns, retail market share, seasonal demand, and industry trends. Based on extensive market research, the report examines who buys jewelry, how much they spend, where they shop, and how purchasing behavior is reshaping the jewelry industry. A valuable resource for jewelers, diamond companies, manufacturers, retailers, investors, and market analysts seeking data-driven insights into the U.S. jewelry market.
Indian Diamond Companies Improve Cash Flow
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.
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. In some categories, it meant selling at a loss for the first-hand buyers – the Sightholders and Alrosa rough diamond clients. There are several reasons for this, the upcoming Diwali …
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