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Gaetano Cavalieri: I expect our industry to experience steady growth, but not at the pace of the past few years
gaetano_cavalieri_preview.jpgThe World Jewellery Confederation (CIBJO) represents the entire jewelry industry embracing a whole variety of companies, from those mining precious metals and gems to those, which are manufacturing and selling final products. The confederation members are national jewelry associations from more than 40 countries, including Russia. In 2006, the CIBJO was the only organization granted the official status of a consultant to the UN Economic and Social Council on the development of the global jewelry industry. Gaetano Cavalieri, President of CIBJO, has kindly agreed to give this interview to Rough&Polished and to talk about his vision of the situation in the diamond industry.

Investments that Make One Beautiful and Happy
svetlana_maximova_x.jpgSvetlana Maksimova, CEO of the Casting-House jewellery company (with the office in the Triumfalny trade centre, specializes in the designer items using high quality Yakutian diamonds with their origin being beyond any doubts and their cut flawless). She is a founder of the Yakutian polished diamonds trademark (Yakutskiye Brillianty). She has graduated from the Yakutian State University and the Far-Eastern Institute of Psychology and Psychoanalysis. She worked as a Senior Deputy Director General at the diamond cutting and polishing Tuimaada Diamond company, AK ALROSA (in the Centre for co-operation with cutting and jewellery companies) and also as a Director of the Almazny Dvor (Diamond House) trading and exhibition centre and a Director General of the Diamond Club of Russia.

Igor Kevchenkov: Money Invested in Polished Diamonds and Gold are the Most Reliable Investments
igor_kevchenkov_x.jpgRusskaya Yuvelirnaya Kompaniya (Russian Jewellery Company) established in 1998 is now an advanced company manufacturing exclusive jewellery and selling it in the Russian market. The Holding comprises Moskovskaya Yuvelirnaya Fabrika (Moscow Jewellery Factory) and multi-brand stores located in Moscow, Novosibirsk and other Russian cities. The jeweler's retail store chain offers a wide range of goods starting from high-end diamond jewellery sets to the one-of-a-kind designer silver jewellery. It is also a partner of leading Russian and foreign manufacturers like MYuZ, Russkie Samotsvety (Russian Gems), Adamas, MZSS and other firms. Igor Kevchenkov, Director General of Russkaya Yuvelirnaya Kompaniya, answers the questions from Rough&Polished.

De Beers Group turning more sophisticated in their technological line-up to identify synthetics
simon_lawson_06042015_x.jpgjamie_clark_06042015_x.jpg







Besides diamond mining, The De Beers Group of Companies has been engaged in diamond research for many years and this kind of involvement is now paying back helping the global diamond industry to prevent its market from being eroded by synthetic diamonds. As part of De Beers Group, De Beers Technologies and the International Institute of Diamond Grading & Research (IIDGR) have been quite busy recently developing techniques and producing a range of easy-to-use equipment focused on detecting treated and synthetic diamonds. Simon Lawson, Head of De Beers Technologies UK and Jamie Clark, Commercial Director for the IIDGR described the latest know-how offered to the diamond industry in their interview to Rough&Polished.



News

27.04.2015
India’s polished exports for fiscal year down 5.46%; down 10.37% in March
India’s cut and polished exports for Mar’15 registered a decrease of 10.37 percent recording $ 1749.38 million (2.828 million carats) as against $ 1951.76 million (3.231 million carats) during Mar ‘14, according to the provisional figures announced by the Gem & Jewellery Export Promotion Council (GJEPC) of India.

27.04.2015
Tanzania to establish mineral trading centre to curb smuggling, black markets
Tanzania will establish a mineral trading centre in Arusha as it seeks to have a credible market for the country’s minerals.

27.04.2015
Big banks to support Dubai’s diamond trade ambitions
At the recent concluded Diamond Conference, three leading UAE banks are backing Dubai’s ambition to become a global diamond trading centre. Emirates NBD, Mashreq and National Bank of Fujairah pledged to support the emirate’s growing diamond business, with a multibillion dirham commitment to facilitate the purchase and sale of diamonds.



India as a world diamond centre

03.09.2012

From ancient times to the present day

Since ancient times, India has been a historical center of diamonds. Several thousand years ago people there were able to mine diamonds and used them to make jewelry. Merchants from many countries exchanged goods and gold for Indian diamonds. Moreover, in the Indian treatise Arthashastra (literally “the doctrine of wealth”) by Kautilya there is a mention of duties imposed on diamonds, which indicates the importance of diamond trade among other goods.

The first diamonds were found and then mined in India more than 1,000 years BC. It is known that Alexander of Macedon brought the first diamond to Europe from India in 327 BC. Almost two thousand years, until the end of the 19th century (1896), India was the only country in the world where diamonds were mined. The diamond mines of Golconda near the modern city of Hyderabad are renowned around the world for the most famous diamonds in history found there.

Diamond cutting also originated in India, where diamonds were skillfully cut and polished by Indian craftsmen since the beginning of the 16th century. Not surprisingly, the evaluation of diamonds and gems also appeared there. Diamonds in India were evaluated similar to the division of society into castes (varnas): Brahmans - transparent colorless diamonds, Kshatriyas – diamonds with a reddish hue, Vaisyas - diamonds with a greenish or yellow hue, and finally Shudras - gray or dark color diamonds. Varna in Sanskrit means quality, color, category.

Production of and trade in diamonds in India

In India, the Madhya Pradesh state has a primary diamond deposit (Majhgawan) and a few placers, the total reserves of which are estimated at 2.6 million carats. Their diamond output is insignificant (Table 1, Fig. 1).

India is the largest consumer of rough diamonds in the world. At the same time, as it was mentioned above, its diamond output is negligible (Table 2).

Table 1

Diamond mining in India, 2006-2011

















According to the Kimberley Process

Table 2

Import and export of diamonds in India, 2006-2011














According to the Kimberley Process

India - the world's largest diamond cutting center

India is the undisputed global leader in the polished diamond market: it holds a 60% market share by value, 80% by volume and 92% by the number of stones. India’s diamond and jewelry business involves about 1.3 million workers engaged in 25,000 enterprises.

Today the country produces 8 out of every 10 polished diamonds in the world. If earlier it was mainly the so-called "Indian goods" - small diamonds, now there is a trend to increase the range of processed diamonds including stones of two carats and above.

India is engaged in intensive construction of new factories with modern equipment, where laser diamond processing and computer diamond marking are being brought to perfection.

India’s diamond cutting industry is concentrated in the west of the country in Mumbai, Surat and Ahmedabad. The entire diamond business is concentrated and controlled by 2,500 families who practice Jainism and are closely linked by ties of kinship. This community, adding up to 0.5% of India’s population, plays an important role in trade and finance.



































 










Fig. 1. Diamond industry of India

India is confidently in the first place as the world's largest producer of polished diamonds. The number of employees in Indian diamond cutting companies is about one million people.

The diamond cutting industry in India is a highly organized sector with a hierarchical structure. At the top of the "management pyramid" is the Indian Gems and Jewelry Export Promotion Council. The aim of the Council is to coordinate the interests of the state and industry, as well as to assist in promoting Indian jewelry industry goods on the world market.

The second tier is occupied by major private import-export companies. All of them are engaged in cutting, except for two. MMTS – the state-owned export-import company trading in minerals. The second one, Hindustan Diamond Company Private Limited (HDCPL), is a joint venture of the Ministry of Trade and Industry of India and De Beers Group, which hold equal stakes in the company. HDCPL was established in 1978 and is one of the leading agents in rough diamond trade in India. HDCPL is a DTC sightholder and supplier of diamonds to the Indian diamond industry, mainly to small and medium factories.

The third tier consists of small and medium-size enterprises in the formal sector of the industry. They are working under contracts with major importers of rough. Their main distinction is that they are highly specialized depending on the nature of processed products.

The fourth tier may include small-scale enterprises of the informal sector operating within a system of subcontracts and specialized in processing very small diamonds. Actually, they source their rough in the secondary market.

Jewelry production in India

India's jewelry industry is export oriented. Jewelry companies in India are highly organized operations using all the modern technologies of management with due account for local conditions. Even small factories (25-50 persons) in this sector have modern equipment.

India’s jewelry industry is mainly producing jewelry pieces of Western design. Still they leave a place for exclusive and expensive products made in the traditional Indian manner.

Jewelry manufacturers use the most up-to-date equipment, casting techniques and elements of computer design.

The Government of India and Gems and Jewelry Export Promotion Council contribute their efforts to win leading positions not only in diamond cutting, but also in manufacturing and exporting jewelry. It was the government’s policy which facilitated high production and export performance being aimed at liberalizing the jewelry sector and domestic market of precious metals and stones.

India’s prospects to preserve leadership in the global diamond business

The high competitiveness of the diamond industry in India is defined by the following factors:

1. Historical traditions and a large number of people employed in the diamond business with a relatively low wages, as well as introduction of modern techniques and equipment making it possible to develop the diamond and jewelry industries in a dynamic way.

2. State protectionism practiced to maintain import and export of goods and virtual absence of state control over the circulation of diamonds and jewelry.

3. High rates of GDP growth in India, as well as high rates of growth in certain branches of India’s industry contributing to higher living standards and thus to an increase in domestic demand and consumption of jewelry and diamonds, which is a huge potential for further development in a country with a population of over one billion people.

Yuri Danilov, Ph. D., Director of the Department of Regional Subsoil Management Economics, Institute for Regional Economics of the North at Ammosov North-Eastern Federal University

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