A remarkable decline in the global diamond exports has been observed in a lot of countries. Exports of rough and polished diamonds are dipping and the diamond industry seems to be at least taking a blip momentarily.
Exports of polished diamonds in Belgium were reported to dip as low as 4% YoY equaling to a loss of USD 1.19 billion in September. Israel saw a decline in polished diamond exports by 12% and Botswana saw a decline in rough diamond exports by 8.6%. Hong Kong and US being biggest markets for diamond exports to both Belgium and Israel had lower demands for polished diamonds for the first three quarters of 2017. US also saw a dip in polished diamond exports of 0.4% to USD 1.38 million.
Israel marked a fall in shipment of polished diamonds to US at 15% to USD 1.6 billion, while exports to Hong Kong fell 3% to USD 1.01 billion. The country’s net diamond account went declined 62% to USD 808 million. Irrespective of the fact that a large amount of goods were sent to Hong Kong for the Jewelery & Gem Fair in September, there was a decline in the total sales.
Though the exports of polished diamonds in India marked a 24% increase in volume to 3.9 million carats, the average price was down at USD 677 per carat.
However, there has been an increase in the sale of ethical diamonds. Recently, Singapore Diamond Investment Exchange (SDiX) along with Kynetix and Everledger came up with a Blockchain technology which would help in moving the whole paper-based Kimberly Process (KP) to digital format.
Increased awareness created about conflict diamonds is resulting in many retailers avoiding purchases from Zimbabwe. Also, according to The Economist, millennials are concerned about the conflict nature of some stones and go for the sustainable ones. This may account for the drop in sales for De Beers and Tiffany’s at 11% and 4% respectively.
The global exports may decline but, the value of diamond continues to grow and as far as the authenticity of the diamond is proved, the demand is going to increase.