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Antwerp
By Marc Goldstein
In 2015, selling from the pipeline appears definitely to be easier said than done. Raphael Rubin of Rubin & Zonen explained, “The situation isn’t comparable to the 2008 recession. There is actually some demand, but the people are really reluctant to buy. They don’t want to stock. Ultimately however, it’s those who have inventory who will sell. Furthermore, since we’re in a bear market, there’s not enough trading, as people expect prices to decline further. The sights must keep inventory low for as long as it will take for balance to come back in the pipeline, both in terms of prices and quantities for the polished and for the rough.” That being said, the mood is very pessimistic. A major manufacturer who wished to remain anonymous observed, “I’ve been in the business for more than 30 years and I must admit that I don’t understand the rules anymore. Not only are sales becoming a real mystery, but the issue of cash flow has reached such proportions that getting paid is becoming a nightmare. Not only am I afraid for the year-end season, but all odds are that 2016 is going to be even worse!”
Shashin Choksi of Swati Gems was even more blunt. “If an honest diamond dealer or manufacturer says he’s made money this year, it’s a lie. The situation has become critical for the whole industry. Years of wrongful policies have brought the producers to the verge of bankruptcy. Their stock values have plummeted. Just think that our industry has lost about $3 billion this year in inventory alone. The last Diamond Trading Company (DTC) sight was $70 million, the smallest sight since 1985. It’s all about reducing the inventory in the pipeline, and it should stay like that for a while, but there’s a tremendous price that’s being paid doing that. Just think of the number of suicides among the polishers in India over the past quarter, who couldn’t take it anymore and had to wait months to feed their families. “It’s a real social drama as well. Loss is everywhere. In terms of the $16 billion lent by the banks to the industry, everybody already knows that $6 billion will never be repaid. But the odds are enormous that it’s more likely going to be $10 billion that the banks will lose if the situation does not change. The only possible option is to live and let others live too. It’s about time the producers invested in advertising. Every part of the pipeline should participate in the advertising effort. It’s not an option anymore today; it’s a must,” Choksi stressed. “The advertising campaigns from De Beers are most certainly going to have an effect, but it’s far too early to measure them,” Rubin pointed out. “Moreover, advertising is by nature a long-term process, which implies that the result will only be visible in a couple of years. And more importantly, the advertising effort should be repeated year in and year out.”
A grand-prize ceremony and gala dinner was held on October 29, 2015, to announce the winner and finalists for the annual Diamond High Council (HRD) Awards. For the 2015 event, HRD invited designers to find inspiration from their own culinary heritage. Tomoko Kodera from Japan was awarded the first prize and $10,000 for Rice Husks, a brooch containing 400 handmade rice husks. The other finalists included Shu Liang from China, Evi Bakker from the Netherlands, Freeman Johnson from China and Sancha Livia Resende from Brazil, who was given the public voting award. All four finalists also received a prize of $2,500. The sponsors welcomed the opportunity to support the designs and generate interest in diamonds. Gabri Schumacher of the Atelier Artis Causa in the Netherlands explained, “We chose to be a jewelry sponsor because we got a great opportunity to showcase the diamonds and our atelier. The articles in magazines and newspapers are great publicity and people will come to visit our atelier.” Abraham Pinkusewitz, founder and chief executive officer (CEO) of Pinkusewitz Diamonds, elaborated, “It is important to sponsor creativity. We also felt the need to increase awareness that Antwerp is not only about diamonds but also is about jewels and retail. And since the winning designs will be featured at the upcoming shows for the next 18 months, it will certainly help increase our brand recognition.” Pinkusewitz also highlighted the end-user aspect. “We really enjoyed learning to work with the public-oriented side of our industry. The show was exceptional, with perfect choreography, and the jewelry was beautifully and glamorously presented. In fact, the response was quite immediate and twofold: a very emotional thanks from the artist/designer and tokens of appreciation from our customers.”Article from the Rapaport Magazine - December 2015. To subscribe click here.
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