Diamex Lab: Our technology allows you to trace the history of the origin of each stone

Gleb Sverdlov, CEO of Diamex Lab told Rough & Polished in his interview below about the development of IT technologies for the market of rough and polished diamonds and jewelry.

17 february 2020

The future of the market goes hand in hand with gemology

After 2019, a challenging year for the global diamond industry, we asked Yuri Shelementyev, head of the Moscow State University (MSU) Gemmological Center and president of the National Gemological Association (NGA), to share his views...

10 february 2020

Diamond industry in healthier position going into 2020

The diamond industry is in a healthier position going into 2020 due to actions taken last year, according to De Beers. Group spokesperson David Johnson told Rough & Polished’s Mathew Nyaungwa that the actions taken included reducing rough diamond production...

03 february 2020

Ethical sourcing and Diamonds Standards Organization

The diamond sector is ready to embrace a new decade and overcome some of its historical challenges. Ethical sourcing has proven to be undoubtedly one of the main aspects that industry professionals need to address. Antonio Cecere, President of Geneva...

27 january 2020

Ali Pastorini: Challenges make us think out of the box and be closer to customers

Ali Pastorini is the co-owner of DEL LIMA JEWERLY and President of Mujeres Brillantes, an association which brings together more than 1,000 women working in the gold and diamond trading sector, mainly from Latin America, as well as from Turkey, Spain...

20 january 2020

Will the crisis unfold in the global diamond market?

16 december 2019

2018 World Diamond Pipeline

This year, a well-known global diamond business analyst, Chaim Even-Zohar, published the structure of the global diamond pipeline in 2018 (Diamond Pipeline 2018. IDEX Magazine No. 4, April 2018). This time, such enterprises as ALROSA, De Beers and others appeared in it. The fast-growing market for synthetic rough and polished diamonds is shown, which already accounts for 5% of the natural market. The forecast for 2018 on the natural diamonds sales was $15 bn, and the value for cutting diamonds in Russia was $300 mn.

Based on this data, tables have been made up that characterize the global diamond market (Tables 1, 2, 3, 4).

Table 1

World diamond mining by countries

analyt_04112019_1_eng.png

Table 2

World diamond mining by enterprises

analyt_04112019_2_eng.png

Table 3

Diamond value added after cutting, by countries

analyt_04112019_3_eng.png

Table 4

Diamond Jewelry Sales by countries        

analyt_04112019_4_eng.png

Prospects for the diamond market until 2020

Using the method of a triangular diagram developed by the author, let us look at the prospects for the development of the global diamond pipeline in 2019-2020. Figure 1 shows the world diamond pipeline pattern in 2006-2018 made using the triangular diagram.

Fig. 1. The world diamond pipeline in 2006-2018.

analyt_04112019_5_eng.png

The 2018 point is not far from that of the 2009 crisis year, which may indicate the forthcoming severe recession in the global diamond market. It will primarily make impact on diamond cutting and mining.

Table 5 shows the performance of the global diamond market in 2006-2018 and the author's forecast for 2019-2020.

Table 5

The global diamond market in 2006-2020, $bn

analyt_04112019_6_eng.png

Brief conclusions

1. As the global diamond market is not sustainable today and the demand for diamonds is declining in 2019, it is unlikely that a drastic change will occur or the situation will change for the better given the tensions in international trade and politics.

2. The study of the world diamond pipeline using a triangular diagram shows that in 2018, it is close to the 2009 global diamond business crisis, and in future, in 2019-2020, there will be further exacerbation of the recession due to the problems in the midstream of the diamond pipeline.

3. If we consider the prospect for diamond-mining countries and enterprises, Russia and Russian ALROSA company will continue to maintain their leading positions in the world in terms of production and value of rough diamonds sold.

Yury Danilov, Ph. D. in Economics, independent analyst and expert