The diamond industry pipeline starts with mining, then rough trading, manufacturing, jewelry setting and finally retailing. It may look like a short and efficient journey, however it is anything but that. In this new article series, the entire diamond pipeline will be presented from one end to the next, with facts and statistics on the issues it faces.
Let us start by stating an unstated truth: The world has much less desire for gem quality diamonds. Consumer demand is shrinking and the $23 billion or so retail sales of yesteryear that the industry was used to are not taking place today. It is important to acknowledge that.
Over the past few months, I have carefully detailed the value components of polished diamonds. These components – Color, Clarity, weight, shape and quality of workmanship – were presented and explained. I broke down the bearing of yield, and described how these different aspects interact in terms of impact on value.
The closure of an Indian manufacturer and the large debts it left behind is probably the most important news of this week, followed by the trade show in Hong Kong.
After covering the main polished diamond shapes, it is worth taking a moment to discuss some less common and even esotericdiamond shapes. Some of these shapes, such as Baguettes, are fairly common and serve specific jewelry and setting needs. Others, like the Shield, are created to take advantage of an oddly-shaped rough diamond and turn it into something unique.