Diamond Gems Weekly - November 25
What a curious time to be in the diamond industry. With all the changes taking effect, and all the uncertainty that has engulfed the market for most of this year, this week we’re served a reminder of why we are here… to sell diamonds, uplift society, make people happy.
What a privilege it is to be part of such a mission. That’s one thing to be grateful for as the US celebrates Thanksgiving this Thursday, ushering in the peak holiday shopping / selling period.
>>> Believe it or not, there is relative optimism for the holiday season as US consumer confidence continued to rise in November, according to the Michigan Consumer Sentiment Index.
>>> There are also growing expectations for positive holiday sales among the diamond and jewelry trade. But, as I explore in my latest video, Will a Good Season be Good Enough to stimulate trading that will reduce the bloated inventory in the manufacturing and mining segments?
>>> We all agree, we need to significantly boost demand. Amid all the calls last week for increased support for diamond category marketing, De Beers launched its holiday campaign touting desirability for natural diamonds. Under the title ‘Forever Present,’ the campaign doubles down on the company’s ‘A Diamond is Forever’ tagline, and introduces a new little ditty: “natural connections deserve natural diamonds.” Nice!
Image: One of the assets from De Beers' Forever Present campaign (Credit: De Beers).
>>> Botswana’s newly elected president, Duma Boko, will address the diamond industry directly for the first time on Tuesday, giving the keynote address at the Facets2024 conference in Antwerp. His address will be followed by an interview by Edahn Golan with De Beers CEO Al Cook. I do wonder if a final deal between the Botswana government and De Beers will be penned in the background.
>>> A panel on Traceability and Origins will round off the morning program, with an introduction by European EU Commissioner, Didier Reynders. Just last week, the EU criticized the Kimberley Process meeting in Dubai for failing to address “the implications of Russia’s war of aggression against Ukraine on the global rough diamond sector.” That, after KP chair Ahmed bin Sulayem blasted the EU’s plan for an Antwerp-based single node to ensure diamonds don’t come from Russia.
>>> Meanwhile, Russian diamond miner Alrosa may suspend some production and cut staff in 2025 due to a “deep crisis” in the global diamond industry, Reuters reported.
>>> Hong Kong-based jeweler Luk Fook Holdings warned that profit fell by about 50% in the six months that ended September 30 due to a decline in gold sales. The company has said in previous reports that it is shying away from diamonds due to weak demand. Full earnings will be released on Tuesday, November 26.
>>> India’s Central Consumer Protection Authority (CCPA) hosted a meeting to address concerns regarding the lack of standardized terminology relating to lab-grown diamonds and inadequate disclosure practices in the diamond sector. The CCPA said it will soon release a robust framework to ensure transparency, accountability, and consumer protection across the diamond industry.
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