Dear Friends,
The summer is drawing to a close and the busy holiday season is right around the corner. Now is the time to get back to work with renewed energy, to ensure that the coming holiday season is a positive one.
In the United States, natural diamond demand is down as lab grown diamonds have made significant inroads in the bridal market. Moreover, a growing number of young couples have chosen alternative stones for their rings or have chosen not to buy engagement rings at all. In China, diamond demand has not sprung back to pre-pandemic levels, for bridal and other jewelry. Since the US and China represent the two major markets for diamonds, these factors have put a significant dent in natural diamond exports and sales worldwide.
I believe that there is a remedy to this situation. There is a lot of educating that needs to be done: To assert the rarity and the inherent value of natural diamonds that were created over millions of years in the depths of the earth. To explain how essential diamonds are to the economies of producer countries and the benefits the industry provides them. To renew the reputation of natural diamonds as a precious symbol of love and a force for good in the world.
Moreover, we need to work toward tracing the origin of each diamond, to follow its story from mine to sparkling gem, and thus to regain the esteem and wonder of the consumer. Fortunately, we now have the technology to do this. But to make this knowledge known to the consumer we must work hard, and that can only be accomplished through major multi-channel marketing campaigns.
Fortunately, we see that some very large companies are now investing in major marketing campaigns to promote natural diamonds in the US and China. It would have been better if they had done this last year, but it is still greatly appreciated. Let’s hope that it is not too late to impact the coming holiday season.
Recently we have heard of the failure of LG diamond manufacturers in Israel, India and elsewhere. That does not make us happy, since those who trade in LGDs are fellow diamantaires. However, it indicates that synthetics have reached their peak as a replacement for natural diamonds and as their prices dive, they are no longer as attractive and profitable. I believe that synthetics will find their niche. De Beers is veering its lab grown diamonds toward industrial applications, while Pandora is using them for fashion jewelry.
In the coming holiday season, I hope to see a return of the consumer to natural diamonds. We are optimistic that this season will be better than last year, that we will see an end to the decline and the beginnings of a return to growth in the natural diamond industry.
Warm wishes,
Yoram Dvash
