Diamond Blog by MID House of Diamonds

THE SHOW MUST GO ON: INDUSTRY TO GATHER AGAIN IN LAS VEGAS

Two years and three months after they last assembled for the United States’ jewelry industry’s signature event, JCK Las Vegas, members of the trade are preparing to do so once again, with its organizers insisting that the show must go on.

ALIBABA’S HIGH-END TMALL LUXURY PAVILION OVERTURNING THE RULES OF DIGITAL RETAILING

A veritable revolution in the luxury markets is currently underway, largely hidden from the Western consumers who dominated the space for most of the past 100 years. It is taking place in Asia, and more specifically in China, and it is being driven by digital retailers, operating online rather than in a brick-and-mortar environment.

TAKING ITS LEAD FROM VALENTINE’S DAY IN FEBRUARY, CHINESE LUXURY MARKETERS SIGN ON TO FESTIVAL OF LOVE CONCEPT

The festival of love, Valentine’s Day, is critical focus for the diamond jewelry industry, with its traditional date, February 14, rivaling Mother’s Day as one of the most important non-Christmas sales opportunities in any calendar year.

COMPETITION HEATING UP AMONG ORGANIZATIONS THAT VERIFY SUPPLY CHAIN INTEGRITY IN THE DIAMOND BUSINESS

Verifiably responsible supply chains have fast become a tangible value-adding quality in the diamond and diamond jewelry business, with companies becoming more inclined to trumpet how their sustainability and ethical business practices set themselves and their products apart from their competition.

STRONG MARKET RECOVERY RAISES DEMAND FOR ROUGH, PUSHING MINING COMPANY’S PRICES SHARPLY UPWARD

The mining companies are credited by many as having provided stability to the industry and marketplace during the most difficult months of 2020. By essentially halting supply into the pipeline, they reduced pressure on companies in its midstream, allowing them to reduce excess inventory with the limited number of sales they were still able to make. The result was a relatively rapid recovery of the market when the lockdowns began easing. As a consequence, polished prices began climbing, and do did demand for rough supply. The price of rough followed the same upward trajectory.

2020 TURNED OUT AS GOOD AS ONE COULD’VE HOPED FOR, STATE AUTHORS OF TACY’S DIAMOND PIPELINE REPORT

Turnover in the diamond sector dipped in 2020, as one would have expected in a year that was dominated by COVID-19. But in contrast to the apocalyptic predictions that were rife at the start the crisis in March, it is fair to say that the industry emerged at the end of December as well as one could reasonably could have hoped. This according to the closely watched diamond pipeline report, prepared each year by TACY’s Pranay Narvekar and Chaim Even Zohar.

It’s not often that that one reads about the discovery of a 1000-plus carat rough diamond, but June 2021 has proven to be an exception to the rule, and the star of the show once again is the Kurowe mine in Botswana.

WITH MARKET RECOVERY UNDERWAY ROUGH DIAMOND PRODUCTION PICKS UP

With reports from the consumer markets indicating increased demand for diamond jewelry and other luxury products, the diamond sector’s two leading producers of rough goods have both reported strong upticks in mine production during the second quarter if the year.

MIDWAY THROUGH 2021, MARKET IN RECOVERY WITH MOST INDICATORS POINTING UPWARD

While it would certainly be premature to declare the COVID pandemic as behind us, most indicators in the diamond, jewelry and consumer markets point to a robust recovery in 2021, following what was a very uncertain 2020.

ALROSA EMPLOYS NEW NANO-LASERING TECHNIQUE TO ENHANCE TRACEABILITY OF ITS DIAMONDS

The Kimberley Process, the tripartite international forum that includes representatives of government, industry and civil society, which is dedicated to eliminating the trade in diamonds associated with conflict, concluded its first formal meeting in more than a year and a half, recording little progress on key issues and highlighted by accusations and counteraccusations between civil society representatives and certain of the government delegates.

KIMBERLEY PROCESS CONCLUDES INTERSESSIONAL MEETING ON ACRIOMONIOUS NOTE AND WITH LIMITED PROGRESS

NOT DESIGNED TO APPEAL ONLY TO WOMEN OR MEN, GENDER NEUTRAL JEWELRY GROWING IN POPULARITY

It traditionally has been the great divide in jewelry, and indeed has been so lopsided that there has been very little divide all. Jewelry items are traditionally designed to be worn by women, and in fact have largely identified them as female. The market for male jewelry, watches aside, has been growing but remains very small.

KUROWE MINE IN BOTSWANA HITS THE JACKPOT AGAIN WITH DISCOVERY OF ANOTHER 1000-PLUS-CARAT DIAMOND

SIGNIFICANT SHIFT TO ONLINE COMMERCE ASSISTS BRANDS GAIN LARGER SHARE OF FINE JEWELRY MARKET

In contrast to most other luxury products, the fine jewelry category is not dominated by major brand names, at least in terms of sales value. For although the public is a generally aware of names such as Tiffany, Cartier and Bulgari, in terms of actual transactions they currently account for only about 20 percent. But that is likely to change.

AFTER YEAR OF CARE AND MAINTENANCE, KIMBERLEY PROCESS RETURNS TO BUSINESS, ALMOST AS USUAL

2020 was a limbo year for the Kimberley Process, the international forum bringing together representatives of governments, industry and civil society to manage the campaign against conflict diamonds, which it does via the Kimberly Process Certification Scheme. Toward the end of the first quarter, as an increasing number of countries entered strict lockdowns to prevent the spread of the COVID-19 coronavirus, a decision was made by the KP to suspend work as usual, and to do only that which was necessary to enable implementation of the KPCS.

TWO MASSIVE DISCOVERIES IN BOTSWANA IN JUST A FEW DAYS: A 1,098-CARAT DIAMOND AND A 470-CARAT STONE

Two massive rough diamonds have been recovered in Botswana in just a few days, with the larger of them being a 1,098-carat stone that is believed to be the third-largest gem-quality diamond ever to have been mined.

JEWELRY INDUSTRY IS AT AN INFLECTION POINT, SAYS MCKINSEY-BUSINESS OF FASHION REPORT

The COVID-19 pandemic was a seminal experience for the fine jewelry and watch industries, which suffered a 10 percent to 15 percent revenue decline, but will see its market return, albeit not in quite the same way they existed prior to 2020, writes McKinsey & Company in a report entitled “The State of Fashion: Watches and Jewelry,” co-published with The Business of Fashion.

WORLD’S LARGEST JEWELRY RETAILER REPORTS SPECTACULAR GROWTH DURING FIRST QUARTER OF 2021

According to the company, sales at its brick and mortar stores were up almost 106 percent, while ecommerce growth increased by more than 110 percent. Total sales by the group equaled $1.7 billion, up 98.2 percent year over year. eCommerce sales totaled $346.3 million.

JEWELRY TRADE SHOWS CAUTIOUSLY PLAN A COMEBACK DURING SECOND HALF OF 2021

Slowly and cautiously the diamond and jewelry industries are inching their way back to normality, with a number of public events scheduled for the second half of the year. While still under the shadow of the ongoing COVID-19 pandemic, their organizers are nonetheless determined to enable face-to-face interaction.

REMOTE MINE IN AUSTRALIA’S NORTHERN TERRITORY HOPES TO PUT COUNTRY BACK ON DIAMOND MAP

That left Australia’s third diamond producing mine, Merlin, which unlike the other two is not located in Western Australia. With a resource that was considered to be second only to Argyle, it can be found in the vast Northern Territories, 720 kilometers southeast of Darwin and about 80 kilometers south of the dusty town of Borroloola.

WITH VACCINATIONS AND UNSPENT CASH IN CONSUMER MARKETS, DIAMOND EXPORTS SEE A SHARP UPTURN DURING FIRST QUARTER

While the COVID crisis continues, the slowdown in cases in the Western markets, largely as a result of the continuing vaccination drive, is having a clearly positive impact on sales and trade data.

PURPLE-PINK CHERRY BLOSSOM DIAMOND BREAKS RECORD AT AUCTION IN HONG KONG

The Sakura, a 15.81-carat fancy color diamond, has been sold for $29.3 million in Hong Kong, making it the most expensive purple-pink stone ever to be sold at auction. A second piece, a 4.19-carat heart-shaped pink diamond ring, called “the Sweet Heart,” was sold for $6.55 million at the same sale.

BAIN OUTLINES TWO RECOVERY SCENARIOS FOR GLOBAL PERSONAL LUXURY GOODS MARKET

Following a year of economic and social turmoil unprecedented in recent history, the luxury market has started its path towards recovery. According to a just released report by the Milan-based luxury unit of Bain & Company, the markets returned to growth in the first quarter of 2021, increasing by up to 1 percent in volume versus the same quarter in 2019, which is viewed by the industry as the last comparable year.

WORLD’S LEADING ROUGH DIAMOND PRODUCERS PLEDGE TO SAFEGUARD ENVIRONMENT AND NATURAL WORLD

The sustainability of the diamond industry is once again under the microscope, in part because of the very public decision by Denmark’s Pandora fashion jewelry chain to forgo the use of mined diamonds in its product range, for reasons of environmental responsibility it claimed.

AS GENDER LINES BLUR IN FASHION AND CULTURAL WORLDS, TIFFANY RELEASES MEN’S DIAMOND ENGAGEMENT RING COLLECTION

On April 29, the iconic American jewelry chain, Tiffany & Co., announced the debut of the Charles Tiffany Setting, its first men’s engagement ring. Featuring a solitaire diamond, the ring is named after the company’s founder Charles Lewis Tiffany, who in 1886 introduced of the women’s solitaire diamond engagement ring, the Tiffany Setting.

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