Jul 30, 2019 15:20:00

'Diamond is eternal radiance' but pointed out that the diamond industry is not likely to be eternal

by

Colin Behrens

De Beers , who has dominated the diamond industry for over a century, and the syndicate companies that lead Devias are reportedly in trouble.

Diamond Industry's Elite Club Is Starting to Show Cracks-Bloomberg
https://www.bloomberg.com/news/articles/2019-07-29/the-elite-club-that-rules-the-diamond-world-is-starting-to-crack

The De Beers Group , the world's largest diamond ore, controls the Central Sales Organization (CSO), which handles almost all of the diamond distribution process such as mining, processing and sales.

The following maps are 'Maps representing the CSO diamond distribution route' by Bloomberg. Raw diamond stones mined from countries of origin such as South Africa, Namibia and Canada are wholesaled in major markets such as the US and China after processing such as cutting and polishing in India, Israel and Belgium.

The only way to get a diamond supply from CSO is to become a De Beers certified '

site holder ' buyer. Only a handful of companies that have passed through De Beers's rigorous examination can become site holders, but once they can join, they will be able to treat diamonds exclusively, so once they said, 'If you can become site holders, you will succeed in the diamond industry. Has been promised, but it has been considered.

However, in recent years, sales of high-end jewelry have been sluggish due to shoes, handbags, resort trips, etc. According to a report on Polished Prices , which conducts market research of the diamond industry, the price of rough diamond is from 2019 to 6 % Also fell.

by Bat Sheva Sida

With these ups and downs, Eurostar Diamonds, the largest buyer of rough diamonds, went bankrupt in April 2019, and the economic situation for site holders is steadily deteriorating, and the number has fallen by more than 100 companies in 10 years. You are The situation is the same as DeVias' parent company Anglo American PLC , and the company's sales in the first half of 2019 were down $ 500 million (about 54 billion yen) when compared with the same period in the past three years.

'The gem industry and the surrounding environment is just devastating. There is a lack of demand, there is an oversupply and there is no sign of improvement,' said Richard Hatch, an analyst specializing in the metals and mining sector. I'm talking De Beers has created a catch phrase 'Diamonds are eternal radiance', but the radiance does not seem to reflect the future of the industry.