Diamond Gems Weekly - November 18
I’m back…from my travels to South Africa and Dubai, and an unplanned one-week hiatus from writing this newsletter. I kept telling myself I’d write in-between sessions or during the discussions at the Dubai Diamond Conference.
I tend to forget, after some 20 years in journalism, that these things take time and concentration, and that my idea of multi-tasking is to do one thing at a time. Five minutes here and there was never going to do justice to the newsletter or the impressive flow of ideas that came out of the conference.
Consequently, last week’s Diamond Gems Weekly was skipped over. Thanks for all the “Where Are You, Avi?” messages! While my OCD went into overdrive for the lack of continuity, I feel it was a worthwhile trade off.
And now we’re back with a lot to talk about. So, with order restored, let’s fill you in on what happened while I was away…
>>> A conference with a twist: The Dubai conference kicked off an action-packed week. Check out my initial impressions of Dubai here, and watch this space for more on how the city is making waves in the diamond trade.
The conference took us on a journey through four panel discussions. It began with an account of the state of the diamond market, then assessed lessons on traceability and sustainability from other industries, before a lively debate on the importance of going beyond compliance and the impact of ESG regulations on diamonds.
But it was the final session calling for a strategic change that put the icing on the proverbial conference cake. On stage with David Kellie, CEO of the Natural Diamond Council (NDC), representatives from major trade organizations in the UAE, India and Belgium pledged to work to (financially) support the NDC’s marketing activities. Its budget has been severely constrained in recent years which has prevented the NDC from making the impact it could / should, Kellie stressed.
It’s early days, but the collective pledge was a long overdue indication that the trade will finally put its money where its critical marketing mouth has been for some time. One feels it was an important moment.
>>> The Kimberley Process (KP) plenary meeting followed the conference: It’s a frustratingly closed forum to which journalists (such as I) are not given access – not even to the opening or closing sessions.
So, we pick up clues of the main themes from communications issued by the World Diamond Council (WDC), and the Dubai Multi Commodities Centre (DMCC), which hosted the meeting given the UAE currently holds the KP chairmanship. Watch KP chair Ahmed Bin Sulayem’s addresses to the forum – opening and closing speeches – and read the opening remarks of WDC president Feriel Zerouki.
Key takeaways were:
· The push toward digitization of KP certificates.
· The readmission of the Central African Republic (CAR) to the KP.
· The recent inauguration of a permanent secretariat in Botswana.
· Thailand takes on the vice chairmanship, meaning it will be KP chair in 2026.
Image: The delegation from the Central African Republic after being readmitted to the KP effectively ending a decade-long ban on rough exports from the country (Credit: DMCC via Instagram).
In other news…
>>> Botswana Deal is Back on Track: De Beers executives emerged from a meeting with Botswana’s new president, Duma Boko, saying they expect negotiations for the new marketing and mining license agreements to be concluded in the coming weeks. Relations seemingly soured with the previous administration over sticking points that have made the agreement now four years overdue.
>>> Meanwhile, Boko will attend the Facets2024 conference taking place in Antwerp next week (November 26 to 27), organizers announced.
Finally, retail earnings continue to trickle in:
>>> Richemont reported revenue fell 1% in the second quarter that ended September 30, weighed down by sluggishness in Asia Pacific (down 19%). All other regions brought robust growth. Group profit slumped 70% in the fiscal first half.
>>> Brilliant Earth saw net sales decline 13% in the third quarter, with a net loss of $1.1 million versus a $2 million profit last year. The retail jeweler’s average order value continues to decline.
>>> Titan Company, India’s largest jewelry group, saw revenue up 13%, but profit down 25%. Managing director CK Venkataraman discusses the results, lab-grown diamonds and why margins came under pressure.
>>> While that all doesn’t make for the most encouraging reading, there is still optimism for the US holiday season. Tenoris reported jewelry sales soared in October, while US Retail Offers Hope for a Recovery (my latest piece for Rapaport). Hint, it’s the independents driving the industry forward.
I told you it was a busy week in Dubai. Well, I came back inspired... I’d love to hear your impressions if you were there.
Image: Delegates at the annual Kimberley Process plenary meeting (Credit: DMCC).
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