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

Diamond industry wary of rough stone price bubble

18 november 2009

A speculative bubble in rough diamond prices is likely to pop by mid-2010 and threaten a rerun of last year's industry crisis, according to an executive of the world's second-largest producer, Russia's ALROSA.
Prices for rough or uncut diamonds roughly halved from August, 2008, peaks to March but have since pulled back about 50 per cent, without an appreciable pick-up in polished prices or consumer demand for diamond jewellery.
Speakers at a diamond conference in trading capital Antwerp on Monday talked of a possible speculative bubble.
“It is very likely that it will explode in late spring or summer,” Sergey Oulin, a vice-president of state-owned ALROSA, said during a break in the event. “We will have difficult times, maybe more than in September/October 2008.”
That crash, prompted by the global financial crisis, led to job losses for almost half a million of some 800,000 workers in India, the centre of diamond cutting and polishing. Some industry insiders have speculated the industry will emerge from the crisis 30 to 40 per cent slimmer.
However, wide-scale bankruptcies have been averted, partly because producers slashed output and banks did not abruptly pull credit in an industry with debt last year of up to $15-billion.
“If the stakeholders had not acted in a co-ordinated fashion we would have had a massacre in terms of liquidity,” said Victor van der Kwast, international diamond and jewellery group head at ABN AMRO, one of the main names in the business.
He said the recovery was fragile and warned market players not to “jump too fast“.
Global retail demand for diamond jewellery will decline by almost 10 per cent this year after falling 9 per cent in 2008, with a pick-up of only 0.4 per cent seen in 2010, an industry report says.
The United States, whose consumers buy over 40 per cent of the world's diamonds, emerged from technical recession in the third quarter but the run-in to Christmas, normally accounting for 40 per cent of annual sales, is expected to be little better than a year ago.
U.S. imports of polished diamonds dropped 43.5 per cent in the first nine months and by 23.4 per cent in September. U.S. consumer sentiment fell to its weakest level in three months, according to November data released last week.
The diamond industry has great hopes for growth in emerging markets, notably China and India, but neither will make up for shortfalls in the developed world for now.
“If the U.S. falls 10 per cent, China has got to double to make up,” RBC Dominion Securities analyst Des Kilalea said, adding diamond sales normally picked up late in a recovery with consumers more interested for example in first paying off debt.
One challenge facing the industry is to ensure that consumers are willing to buy gems in the future, stemming decreased interest from a younger generation more focused on iPods and addressing a rise in ethical consumerism.
Top diamond producer De Beers, 45 per cent owned by Anglo American, used to foot the bill for generic advertising, but the big players plan to share the marketing burden from next year with the newly formed International Diamond Board.
It will seek to promote buying diamonds and also counter “shocks” or negative publicity such as from the 2006 Hollywood movie “Blood Diamond” about conflict stones.

Yekaterina Davydova, Rough&Polished Asian Bureau Editor in Beijing