Innovation and automation can conquer any challenges

Rahul Gaywala, the CEO of STPL has been with the Sahajanand Group since 1993 and in his tenure with STPL, he has proved to be a hard-core innovator and technocrat intent on helping to transform the diamond trade from a labour-intensive industry to an...

06 april 2020

Memorial Foundation of Carl Fabergé continues to fulfill its tasks

Valentin Skurlov, Ph. D., who is an Honorary Academician of the Russian Academy of Arts, professor, scientific secretary of the Fabergé Memorial Foundation, consulting researcher studying the Fabergé heritage at the Russian department of the Christie's...

30 march 2020

Gaetano Cavalieri: We need to protect the long-term health of our industry

The 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...

23 march 2020

Sierra Leone mulls setting up entity to buy diamonds from artisanal miners

Sierra Leone will revise its Mines and Minerals Act that will, among other issues, pave way for the establishment of a State entity that can buy diamonds from artisanal miners, an official has said. The National Minerals Agency of Sierra Leone director-general...

16 march 2020

David Block, CEO of Sarine Technologies believes that AI will play a bigger role in the industry in the next few years

Armed with an MBA degree from the Kellogg-Recanati School of Business, and a Bachelor's degree in Computer Science from the Tel Aviv-Jaffo Academic College in Israel, David Block is the present CEO of Sarine Technologies, a worldwide leader in the...

10 march 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

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Table 2

World diamond mining by enterprises

analyt_04112019_2_eng.png

Table 3

Diamond value added after cutting, by countries

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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.

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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

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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