Financial institutions are another key stakeholder in the diamond supply chain, which Ehud believed expected greater transparency from the diamond sector.
"Bank financing is the lifeblood of the industry. Without it, there would be no money for exploration or new store openings," Ehud stated in 2015. He also stressed the need to boost confidence in the diamond industry. This lack of confidence is evident in, for example, the decline in available bank financing over the past several years.
Beyond diamond players, Ehud explored other supply-side topics that have sparked debates over the years where he believed that similar to demand-side issues, greater transparency is central to address them. Lab-grown diamonds provide a good example.
While their emergence was accompanied by rising concerns across the industry, Ehud believed lab-grown diamonds can play a complementary role to that of natural diamonds, provided consumers gain a better understanding of the inherent value of natural diamonds.
As another possible way to solve the problem of fragmentation in the diamond sector beyond consolidation, Ehud encouraged the industry to explore strategic alliances.
Ehud explored possible methods of addressing the issue of fragmentation, drawing in part on lessons from other industries.
First among them was simply consolidation, whether natural or through mergers and acquisitions.
Delving further into the issue of fragmentation in the midstream (manufacturing) of the diamond sector covered in last week's post, Ehud said in August 2015, "The more we examine the facts, the clearer it becomes that the main problem faced by the diamond industry is that the midstream – the manufacturing sector of the diamond pipeline that mainly polishes diamonds – does not get its fair share of the pie."
In addition to improving pricing transparency, Ehud believed that the diamond industry should also tackle the other issues that have led to a decrease in trust in the sector as a whole.
Improving the pricing transparency of polished diamonds is the first part of the two main components of the Crystal Clear philosophy. The other part, driven by the first, is the ability to then determine the prices of rough diamonds.
The rationale that Ehud used here was that, ultimately, it is consumers who determine the price of a rough diamond based on how much they are willing to pay for its polished output.
The introduction of a transaction-based polished diamond price list is possible. The Mercury Diamond™ Price List which Ehud founded, provides wholesale polished diamond prices based on transaction prices in the wholesale market.
A key component of Mercury Crystal Clear™, the diamond pricing system which Ehud founded, is expanding consumer knowledge of diamond characteristics beyond the 4Cs (Carat, Color, Clarity and Cut) known to the ordinary buyer.
"The importance of a transparent and easily understood pricing system for diamonds cannot be stressed enough. For many years, the general press and many consumers have been stating that the misunderstood differences in diamond prices are a turn-off."
In the diamond industry, Harry F. Oppenheimer is known as the former head of De Beers and the man who controlled the global diamond industry for decades. However that description does not do him justice. Taking controll of great gold and platinum assets, and was a South African parliamentarian who fought the country's apartheid rule.
Two men were behind the establishment of the De Beers, Cecil Rhodes and Barney Barnato. Barnato was born to a Jewish family in the East End of London in 1851 or 1852 as Barnett Isaacs. The future diamond magnet was born to a poor family and had a very unpromising beginning. His mother Leah died a year after he was born, and his older sister raised him and his two other siblings. His father, Isaac, was a shopkeeper who sold secondhand clothes. The family's poor financial situation forced the child to leave school early and help support the family by working at his father's shop as well as other odd jobs. Another way to support his family was to perform as an entertainer.
One of the most revered and popular jewelry brands was born out of unusual circumstances. Most of today's leading diamond brands were formed either in Europe or the US. Even then, they were established in one of a very few cities – Paris, London or New York City. H.Stern, however, was formed in Brazil by a Jewish immigrant, who escaped Nazi Germany as teen right before World War II.
One of the most revered and popular jewelry brands was born out of unusual circumstances. Most of today's leading diamond brands were formed either in Europe or the US. Even then, they were established in one of a very few cities – Paris, London or New York City. H.Stern, however, was formed in Brazil by a Jewish immigrant, who escaped Nazi Germany as teen right before World War II.
Abraham 'Bram' Fischler was honored numerous times throughout his life for his many achievements, but more than anything, he should be credited for his pivotal role in establishing the Kimberly Process, a United Nations backed effort to limit trade in rough diamonds to countries that adhere to strict controls and by doing so to prevent diamonds from being used to help finance civil wars.
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