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 …
Diamond Market Activity and Analysis - Page 8 of 8
The diamond market explained. Using our research, detailed data, and knowledge of the diamond industry, we put it in context with clarity.
What is the Diamond Market?
It is the collected set of activities that result in a piece of jewelry set with a diamond adorning a person. It covers a wide range of activities, and requires a wide range of disciplines to continue and develop. And yet, it is a relatively small industry that generates less than $100 billion in global retail sales.
Why is There a Diamond Market?
It is human nature to desire to adorn jewelry. Diamonds have succeeded to catch the attention of many thanks to their exceptional beauty, but there is more to this picture. The successful use of marketing since the early 1940s has had a large contribution.
Since the dawn of humanity, people have sought to adorn themselves. The desire to look good and decorate ourselves is set deep into our DNA. Be it a simple string of small shells or flowers, or an elaborate crown full of details and complex workmanship, we want it.
Of all the components that can be set in a decoration, diamonds reign supreme. Thanks to their sparkle, shine, rarity, and overall beauty, diamonds have always been coveted. It is that desire that the diamond market serves. It is the reason that a multi-billion dollar exits – to serve a human desire.
What Are the Components of the Diamond Market?
The foundation of the market comprises:
- 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:
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.
Interview with Rubel & Menasche
In an interview for Rubel & Menasche, The Old Days Are Gone, A New Way Of Doing Business Is Here, Edahn discusses how lab-grown, transparency, Amazon’s low price-point jewelry, Anglo American’s takeover of De Beers, and high retailer fragmentation are influencing the diamond industry today. A few excepts: Lab Grown Lab-grown diamonds are an interesting concept, among other things because …
De Beers’ Sales +11% in 2014
De Beers‘ results were announced this morning. The diamond mining company saw a sharp rise in sales, helped by a jump in average price per carat on its rough diamonds. De Beers’ Results Summary 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 …
It’s Official: Specialty Jewelers’ Sales Crashed This Holiday Season
American specialty jewelry stores generated $8.87 billion in holiday sales this past November-December Holiday Season, a 4.7% decline compared to the 2013 Holiday Season.
Rio Tinto’s Diamond Sales +5.8% in 2014
Rio Tinto had a good year in diamonds. 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 diamond 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 …
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 polished diamond imports totaled $888.6 million, up 1.6% over the prior year. The average value of Japan’s diamond …
Large December Sight
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. The large rough diamond supply at the December Sight follows a characteristically smaller …
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 …
