Fine jewelry sales in the US posted 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 prices …
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:
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 …
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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 US State of the Jewelry Market Report
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% …
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 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 …
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