Cautious Buying

The summer edition of International Diamond Week Israel (IDWI) concluded in Israel, there were few common sentiments that echoed throughout the diamond week like need to adapt to changing economy, reaching out to the millennial buyers and most importantly acting with caution during the current market conditions.

The fifth IDWI took place at the Israel Diamond Exchange in Ramat Gan from August 30th to September 3rd. IDWI hosted more than hundreds of buyers with representatives from countries, including Belgium, India, Turkey, China, the U.S., Russia and Switzerland. The IDWI was organised by the Israel Diamond Exchange in close cooperation with the Diamond Dealers Club of New York (DDC), the Antwerp Diamond Bourse (Beurs voor Diamanthandel), and, for the first time, also by the Bharat Diamond Bourse.
Israel Trau, CEO of Union Bank, was the guest of honour for the opening ceremony of IDWI. During the opening ceremony, IDE President Shmuel Schnitzer, honoured the parting President of the Antwerp Diamond Bourse Marcel Pruwer with an honorary IDE membership in recognition of Pruwer's valuable contribution to the fruitful cooperation between the Belgian bourse and the IDE.
The diamond industry is currently grappling with market uncertainty and it was evident during the recently concluded IDWI. It’s more than a year that the industry has been struggling to cope up with the volatile market conditions. Tight liquidity, too, has added to the existing woes. Reports of bankruptcies from the industry have only added to the host of issues that the industry is fighting with. A number of wholesales, manufacturers at the diamond week said that there is cautious buying; buyers are buying as per the needs and only those goods that could easily sell. Even some of the manufacturers of natural diamonds raised concern over growing threat of lab-grown diamonds on their business.

IDE’s Technology Service Center (TSC) Prior to the grand inauguration ceremony of IDWI, the Israel Diamond Exchange’s (IDE) newly renovated diamond Technology Service Center (TSC) was inaugurated at a ceremony held in the diamond trading hall. Located on the trading floor, the TSC allows members use a wide range of the latest technological devices and gemological equipment, both for rough and polished diamonds. “I believe that the means we are providing to diamond manufacturers will be fully utilised and will assist in the expansion of diamond production in this country,” said Shmuel Schnitzer, President of the Israel Diamond Exchange. “The re-opening of this technological service centre joins other efforts we are making and marks the continuation of the history of the Israeli Diamond Industry.”

Ranjeet Barmecha, Niru Diamonds
In certain sections we have also reduced the manufacturing. DTC reduced the prices in 1 carats up so it does not affect us but people in that category were losing more than 9 per cent. I think this is not a good move they should have not announced the price reduction and should have given better assortments.
Sooner the weak people go out of business, better it is for the market. In Israel, if a person refuses to pay the cheque, his name is on the list. And now they are going stricter. The producers could have helped us to structure it better since the beginning of the year. We check every stone which we sell to brands and till now there is no problem. But CVD is a threat to the industry. We have to safeguard our brand.
Watch industry is also down 15 -20 per cent.
Three months before, we were feeling it might get better but now I am not sure how long this will go. There is lot of uncertainty. This year is almost having come to an end, we would see for next year. When market will move, I hope that time miners should support the market. For diamonds, generic marketing is important but this is too late.

Avner Sofiov , Tzoffey’s
After 2008 crisis, people lost confidence on money; different countries had issues. People started to buy diamonds and diamond went out very quickly out of the demand and with all the situations now in China and Russia, they have stopped buying.
Fancy colours still have demand and they are special pieces. The end-users have so much information that the jeweller cannot make big profits and they have huge operations cost. Jewellers are trying to buy items that they can make some profits from. Rubies sapphires emeralds are going up as well as fancy colours.
In big stones, which are nice still it's working. The problem is in the everyday items 1 to 3 carats. The rough is still strong. Now, its goods to goods in diamonds, you can see in market there is trading of goods.
ALROSA is selling in tenders so market is setting the price. Tender system is the best system to sell the roughs today. We have buyers of rough from India and Israel as well. I believe, the coming year 2016, will be better and by the statistics in 2020 the demand will be more than the production. People will buy genuine goods. Man-made will only take small items space and not in bigger sizes. It will create it's own market and clients.

Ori Fluk, Yoshfe Diamonds International
In Israel the debt to bank went down.
Most of the people in Israel are conservative and go step-by-step. Or, the banks here controlled as well - much better .
It can be thanks to the regulations here that they controlled and is very tight .
As a business man we want more flexibility from the bank and on the other side it may be in the advantage of the industry. Our sales are down as well because of far east but in the U.S. we are still ok than other areas. In 2008, all the industries were in crisis. Right now, the situation is different; other industries are okay. The real economy is working. We are losing the share from the pocket. Buyers are losing their desire for diamonds. Generic promotion of diamonds is need of the hour.
The rough diamonds are not going down as it went down in 2008. De Beers did an effort by slashing the prices but assortment was weaker. I think, De Beers has to go further down with the prices. And other miners should also reduce the prices if they wish to sell the goods.

Shai Barak, Vivial Diamonds
There are two markets: the B2B and the one which go to the stores. People don't know what to do and what to invest . Market is on hold. Till 2008 people believed in diamonds. De Beers were promoting diamonds like no one else did, today no one is promoting diamonds that way. During those years, Asia markets changed the whole market; especially, China and India changed the world and market was good. Retail stores are full, new cities are being built but buying has been on hold. People have changed priorities. Internet has changed the way people buy.
..... today all stores are full and new cities are build and came on hold . From 2014 things are stopped ...only America is working . This vegas lab grown diamonds people were aggressive . In last ten years Internet has changed the way people buy..