GOLDNET.MARKET - “We want and are working to provide business with the opportunity to develop a lot of activity areas”

Today, almost all jewellery companies have their own wholesale websites, online stores, and social media pages. But a year ago, GOLDNET.MARKET, the first jewellery wholesale marketplace appeared in Russia, a new effective tool for the jewellery market...

20 september 2021

Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

06 september 2021

There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

30 august 2021

The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

23 august 2021

Industry Speculation Remains Primary Concern

18 november 2009

Speculation that is driving rough diamond prices higher emerged as the main concern among attendees of the Antwerp Diamond Symposium on Monday, as the disconnect between the polished and rough markets has become more apparent in the past year, RAPAPORT reported.
“The significance of this paradox has been felt strongly during the past 12 months of crisis,” said industry consultant Anish Aggarwal, the managing director of Gemdax, at the symposium on Monday. He identified three factors that influence rough demand: normal diamond sales through the pipeline, industry financing and market speculation.
Aggarwal stressed that speculators are legitimate participants in the pipeline who have a direct influence on the market. As a result, Aggarwal urged the industry to consider and control market speculation and finance as separate activities.
Chaim Pluczenik, the managing director of Pluczenik Diamonds, who monitored a workshop on rough supply at the symposium, noted that rough speculation was increasing and that there was a significant lack of rough in the market, which was also impacting prices.
Concerns about high rough prices became more apparent this month after reports circulated of hikes of approximately 5 percent at the Diamond Trading Company (DTC) and Rio Tinto October-November sights and at the November BHP Billiton tender. Many at the symposium claimed that the tender system was encouraging speculative practices among manufacturers and dealers, claims which mining companies rejected.
“Prices reflect supply-demand fundamentals in the market,” said Chris Ryder, the marketing director of BHP Billiton, in explaining the company’s decision to market its diamonds through a tender system. He explained that the BHP Billiton Group generally prefers to market its products based on a spot price mechanism, rather than on benchmark pricing.
“We aim to follow the market and realized that we cannot outperform it, so we try to work according to the spot price of the day, every day,” Ryder noted.
Similarly, Rio Tinto announced the implementation of a tender system for a minor portion of its production, with the system to serve as a price mechanism driven by market dynamics. Asked whether industry giant De Beers would follow the same trend, Tim Dabson, De Beers executive director of beneficiation, stated that the company already holds rough diamond tenders through its Diamdel subsidiary, which sells rough to the secondary, or non-sightholder, market.
Symposium attendees praised the mining companies for their response to the economic downturn, specifically for cutting production and answering manufacturer’s calls at the 2008 symposium to act in a responsible, collective manner in doing so.
Many attributed this year's improved conditions within the industry, compared with one year ago, to the responsible behavior of the mining companies and the banks. As a result, spokespersons for the symposium concluded that 2010 is likely to be a year of growth and that the sector needs to understand that there is now a "new normal" in the global economy and with that new normal, a new way for the industry to operate.