September 7, 2022 – In early September 2022, Industry analyst Edahn Golan issued a mini survey via his Twitter account, asking” “What do you think are the most pressing issues in the diamond industry?” He listed
- rough diamond prices;
- low level of marketing
- the popularity of LGDs
Edahn’s questions can be condensed into a single question: How do you cope with the changes occurring throughout the diamond supply chain? As we have noted frequently on this platform, change is the one constant in our professional and personal lives.
Are prices, marketing, and LGDs the most pressing issues of our trade? The three topics Edahn chose are all thought to be “manageable.”
- When current polished stocks run out, polished prices will again follow rough price increases, and the balance between rough diamond supply and polished prices will be restored.
- The increasing supply of ever bigger sizes of polished LGDs is causing prices to drop further.
- The – perceived – low level of marketing is endemic to the diamond trade’s long-ingrained contention that marketing should start at the top of the chain and is not the middle market’s responsibility. However, the Natural Diamond Council is marketing diamonds and diamond jewelry to the public thanks to the major diamond miners/producers.
Marketing is the key factor we should pay close attention to. Ultimately, it’s all about the consumers’ desire for our product, i.e., for diamond and diamond-set jewelry.