Can the diamond market look forward to a complete recovery by end-2010? There are some in the sector who express confidence that the worst is over, and that prices for uncut as well as polished, have bottomed out. 2010 looks good, they say. Yet there are others who differ in opinion.
The crisis in the diamond industry has hit bottom, and the industry can now look forward to growth, according to DeBeers managing director Gareth Penny. Mr. Penny relayed this message to a room full of diamond merchants, manufacturers, and leaders at the Diamond Town Hall Meeting on June 3rd.
Namdeb, a Namibian subsidiary of world diamond mining giant De Beers, reported on Tuesday that it will put its employees involved in diamond mining on paid leave for at least three months to cut costs. For full story, click here
Traders, cutters, and retailers are all warning that the diamond business’ struggles will cause a restructuring of the entire industry.
In 2008, as the bleak economic outlook deepened, there were significant repercussions for the diamond industry. Early on in the downswing it seemed that the industry would withstand the economic current. However, under close examination it was apparent that a storm was brewing.
De Beers Canada has laid off 128 Snap Lake diamond mine workers and terminated outside contracts that affect 90 other workers as it reduces production to meet the forecast decline in rough-diamond sales. For more information, click here
De Beers is to borrow $500 million from Anglo American and other shareholders as the global financial crisis cuts demand for the diamonds. For more information, click here
De Beers suspended production at its diamond mine venture in Botswana since the start of the year because sales declined. Sheila Khama, chief executive officer of the company’s Botswana business, said: The mines, the source of half of De Beers’ supply of rough diamonds and almost a quarter of the world’s by value, sold no diamonds [...]
Global Diamond industry is undergoing a strong transition towards growing demand for "conflict-free" or "violence-free" or ethical diamonds- guaranteed to originate from ethical and environmentally responsible sources. This transition is in response to the growing awareness among people and consumers worldwide about the so called "Blood diamonds"
With the Christmas buying season upon us jewelry companies who would typically have their biggest sales of the year are bracing for disappointing numbers. A study completed this fall by the Harrison Group and American Express Publishing found that of all the luxury categories, jewelry could take the biggest hit in the downturn.
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