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De Beers Introduces U.S. Diamond Reselling Insight Program

Aug 19, 2014 10:43 AM   By Jeff Miller
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RAPAPORT... De Beers created a program through its independent entity, the International Institute of Diamond Valuation (IIDV), that is meant to enhance the understanding of consumer diamond reselling activity in the U.S. and will being operating with a small number of retailers. The program was created  to assess the effectiveness of reselling approaches and to explore ways to improve the process.

Tom Montgomery, the senior vice president of strategic initiatives at De Beers, explained, "The practice of consumers looking to sell back their diamonds isn't new. For the vast majority of people, a diamond is something they keep hold of forever and never look to sell. However, for reasons such as death, divorce or financial distress, some people will always look to resell their diamonds. Some retailers have expressed reservations, however, about how the current reselling experience could impact consumers' views on diamond equity in the long term. We believe that the only way to gain a true understanding of diamond reselling activity by consumers, is to run this small-scale program to assess how reselling has developed, how it might evolve and how it impacts consumer perceptions of diamonds."

As an organization, IIDV  partners with jewelers that demonstrate the  best practices of buying diamond jewelry from consumers. The group conducts identification services and independent  selling price information for its customers. IIDV’s laboratory is located in the Diamond District of New York. The group's goals are to provide greater transparency in the valuation process, create reputable brands and trustworthy jewelers and promote  industry best practices for the diamond jewelry reselling market.

Tags: De Beers, diamonds, iidv, international institute of diamond valuation, Jeff Miller, new york, reselling, retail
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Another Dumb idea from the folks that brought us "Millennium Diamonds"
Aug 20, 2014 3:30PM    By G. W. Wright
While hundreds of millions of low priced "2nd hand diamonds" have entered the market since 2008 downturn, De Beers NOW has decided to get in on the action! It is curious though that they have plans to get back to the "old monopoly tactics" of buying up cheap priced competing diamonds from the open market only to recycle them back into the market at higher prices to their existing customers. Will some of these diamonds go into to the Forever Mark program? How can De Beers know if these diamonds were "Responsibly Sourced"? How can they know that the goods were not stolen or more importantly that they are not "Blood diamonds" (originally sold by De Beers or other companies, before they "found religion" and stopped the practice of buying ANY goods that competed against them.)The International Institute of Diamond Valuation sounds like just another avenue for De Beers to inject themselves into one of the last (very positive) revenue streams that jewelers and US diamond dealers enjoy!
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Aug 19, 2014 4:55PM    By David Atlas
The process of buying second hand diamo0nd from the public is a long standing business which is driven by the demand for recycled diamonds in the market. It can be a lucrative business, but it is not an easy thing which can be boiled down to a few standards or buying techniques. The main reason for problems in the business of diamond sales are false and very high "suggested retail prices" from which most major sellers offer tremendous percentage discounts. The consumer begins with a very confusing situation which is what needs to be addressed. Misrepresentation of value is only one of the things truly hurting retail sales.

The end game, where diamonds are bought back into the trade, is not in need of interference or tampering. It is already in a somewhat fragile condition and consumers should be free to choose whom they wish to do business with. It would be very unfair to promote select buyers when every buyer should have the right to offer and compete for business. I trust DeBeers and this new entity will keep alive the competitive and independent nature of this element of the diamond trade. I encourage open information for consumers, but not a situation where buyers are pre-determined by some outside entity.
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