Ali Pastorini: “We have to change a little the way to sell the idea that buying jewelry is just for glamour”

Ali Pastorini is the co-owner of DEL LIMA JEWERLY and President of Mujeres Brillantes, an association which brings together approximately 1000 women working in the gold and diamond trading sector, mainly from Latin America, as well as from Turkey, Spain...

18 february 2019

Indian gem and jewellery manufacturers have the skill and capabilities to cater to any market in the world

Besides spearheading the “White Paper” last year, Colin Shah, Vice Chairman of the Gem & Jewellery Export Promotion Council (GJEPC) has been actively involved in the initiatives of the Council like MyKYCBank and many more… A first generation...

11 february 2019

The Indian gems and jewellery industry was progressing in the past and will certainly progress in the future

Dinesh Navadiya, the Regional Chairman (Gujarat Region) of The Gems & Jewellery Export Promotion Council (GJEPC) of India, is also the representative of the Gujarat G&J sector at various organisations as well as government authorities...

04 february 2019

The Russian Diamond Line: We do not believe that gifted persons would win through on their own

The Russian Diamond Line, a Moscow international jewellery contest of jewellery design, has been held for a decade already. At the end of the year, the results of the jubilee RDL-2018 contest were summed up, and on December 14, the prizewinners of the...

28 january 2019

New lending will have to be fully asset-backed with true provenance and transparency in the flow of goods and monies

After handling Gem & Jewellery (G&J) industry financing as a banker for many years, Erik A Jens sees an opportunity now that numerous banks are withdrawing from the sector. He is exploring opportunities to establishing a financing firm focusing...

21 january 2019

ABN AMRO predicts uncertain future for diamond industry

18 january 2019
abn_amro_logo.pngThe global diamond industry has moved from a relatively stable environment to a highly uncertain environment due to lab-grown diamonds, according to The Diamond Insights report published by ABN AMRO Bank recently.
In her report, Georgette Boele, ABN AMRO’s Co-ordinator FX & Precious Metals Strategy, refers to De Beers launching lab-grown diamond jewellery in 2018, which will result in the growth lab-grown diamond jewellery in 2019 and the years ahead - a disruptive phase for the natural diamond buyers sector on the whole as retailers and wholesalers will de-stock and hold less inventory eventually resulting in lower demand for natural diamonds as well affecting prices.
Boele points out that many people in the diamond industry are willing to jump on the lab-grown diamond bandwagon and many more will follow in the future. Her suggestion is that miners could speed up mining activity to cash in on their diamond reserves as natural diamonds may not hold their value for long. Second, the miners could stop searching for new mines as the high exploration costs will unlikely be paid back by future income from natural diamonds. Also, as prices for smaller and less desirable diamonds will decline as they can’t compete with lab-grown diamonds, so the miners will focus on good quality and larger diamonds above 0.5 carat, which still has value. Thirdly, Boele suggests that miners could launch lab-grown diamonds or team up with a lab-grown diamond producer.

                             Image credit: Lightbox (De Beers Group)

In addition, Boele has a few strategies for lab-grown diamonds producers as well. For instance, they can secure cheaper energy supply;  focus on technology; improve their distribution, and offer lab-grown diamonds for wedding jewellery at more attractive prices.
Most importantly, in her report, Boele expects prices of rough and polished diamonds to go down for various reasons. First, cautious natural diamond buyers will scale back their natural diamond purchases; secondly, some natural diamond buyers will want to offer a wider range of diamonds, including natural and lab-grown diamonds, thus eating into the budget of buying natural diamonds; third, the power of the miners is decreasing because of higher uncertainty and the industry may change from an oligopolistic structure to a more competitive and stronger structure; fourth, if consumers are more attracted to lab-grown diamonds for jewellery, it will result in lower demand for certain groups of natural diamonds. And wider acceptance of lab-grown diamonds will result in rough and polished diamond prices moving more in sync.
Finally, the report concludes that higher lab-grown diamond production and better technology will drive lab-grown prices lower. And with consumers being the ultimate winners, they will be able to buy diamonds at more attractive prices but to be informed that they do not hold investment value.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished