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Israel's Diamond Leaders Call for Reduced Rough Supply

Jun 16, 2015 3:24 PM   By Ronen Shnidman
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RAPAPORT... Major rough diamond producers should reduce rough sales to help bring stability to the diamond pipeline, according to industry leaders in Israel.  Shmuel Schnitzer, the president of the Israel Diamond Exchange (IDE), and Jacob Korn, the president of the Israel Diamond Manufacturers Association (IsDMA) expressed their support for restoring profitability to the diamond industry's midstream by indirectly reducing supplies.

"Reducing rough diamond prices is not the solution to the lack of profitability in the industry's midstream because it will hurt market confidence," said Schnitzer. "In the short term, we need less rough from producers so that the market can correct itself. However, I'm not sure that the miners can afford to maintain this solution long-term."

During the presidents meeting of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA) in Tel Aviv, leaders discussed issues of pressing importance across the diamond pipeline. Representatives of the WFDB and IDMA agreed that bringing profitability to the industry's midstream would require the cooperation of rough diamond producers. However, they left specifics open for discussion.

Ernie Blom, the president of the WFDB, said, "We are our own enemies because no one is forcing us to buy these rough diamonds. We are partly to blame for the astronomically high prices of rough, but producers must also understand that this is a symbiotic relationship. They shouldn't chase short-term profits at the expense long-term sustainability of the industry."

Tags: Blom, IDE, IDMA, IsDMA, Korn, Ronen Shnidman, rough supply, Schnitzer, WFDB
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High Prices Not Good
Jun 17, 2015 11:12AM    By Bruce Smith
Over many decades diamonds have made adjustments going up and down according to global consumer demand. I have been through 4 or five major downturns since i have been in business and each time i did really well when prices were very inexpensive. Often clients would say " Is that all it is " and would make purchases. Consumers would say the same thing and recognize they could afford a diamond in the size and quality that they could not before. Yes those diamond dealers who decided to hold on to goods and make their price will loose money but that has happen to myself and everyone else i know . I have been very careful in the past so any loses were very small because it was easy for me and others to see the downturn coming. I found the most profit i ever made on diamond rough or polished was when there was serious correction in the diamond market and i am not the only one. Please understand anything in a fine diamond from 2.00 ct and up is for millionaires and that is crazy in my opinion. Keeping the prices sky high artificially in opinion will not help at all and in fact make it more difficult to produce sales and will turn off many potential clients.
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