It is time to move matters forward. For many months I have been discussing issues in the diamond pipeline, with an emphasis on transparency, disclosure and knowledge. In those articles I attempted to flush out sore points, examine them and provide an alternative approach.
In recent articles, I have explored the way that consumers make decisions about buying diamonds and diamond jewellery. I have shown how these decisions are affected by age, income level, and geography, and how the relatively recent introduction of gem-quality lab-grown diamonds is giving consumers a significant new alternative in purchasing decisions.
The long history of diamonds, which we have covered here over the past few weeks, has been the exclusive story of natural diamonds – nature’s beautiful creation. However, what about those diamonds not created by nature? And more importantly, what about their value? And does it endure over time?
In our last article, I identified the primary consumers of diamond jewelry today. I noted that more than 50% of diamond jewelry pieces are destined to be worn by a married woman, and that income is the single most important variable when determining diamond consumers. I also outlined how branding is—and will continue to be—a critical marketing tool to establish diamonds as a premium luxury item for the next generation of consumers.
Two weeks ago, I showed the diamond manufacturing's economy of loss, defining the midstream as the diamond pipeline’s gatekeeper of rough diamond prices for the entire industry. The report centered on an analysis of diamond manufacturing costs and how they result in a loss, and presented an alternative approach that would result in profit. This week, I will conduct the same analysis, based on the latest prices and costs.