The third day of the US/International Diamond Week at the Israel Diamond Exchange (March 19) will see 200 foreign buyers taking part, IDE officials report.
That is up significantly from the 154 buyers from across the world who took part in the event on Tuesday where more than 150 Israeli diamond companies are offering more than $1 billion of polished goods for sale.
The largest number of buyers is from the United States, while there are also buyers from United Kingdom, Belgium, South Africa, India, Hong Kong, Turkey, Japan, China, Spain, Canada, Russia and Switzerland.
Both IDE President Yair Sahar and Diamond Dealers Club of New York President Reuven Kaufman, who performed an opening ceremony on the trading floor of the exchange on Tuesday with more than 1,000 people present, have expressed their delight at the overwhelming popularity of the March 17-20 'Festival of Diamonds'.
The highlight of Day 3 will be a speech by Tom Moses, senior vice-president of the Gemological Institute of America who will speak on New Developments in Gemology.
The second day of the event was concluded by Rapaport Group pricelist publisher, journalist and analyst Martin Rapaport, who was praised by IDE President Yair Sahar for his help with the Diamond Week. Rapaportgave an exhaustive overview of the worldwide diamond market, and how Israel and the United States can strengthen their positions.
Martin Rapaport: "Don't chase rough goods". Photo: Fucs
"Don't base your profits on rising diamond prices but on the added value you can bring to diamonds." Photo: Fucs
While there is a growing demand for diamonds, the supply continues to decline and that will become even more apparent in the coming decade, Rapaport said.
He suggested that diamantaires focus their efforts on India and China and Asia generally since the growing middle classes in the region would provide diamond companies with new and enthusiastic customers since 100 million people were joining the ranks of the middle classes in the region every year.
He said the price of rough was higher than that of polished due to easy credit facilities in India, the phenomenon of round-tripping where some Indian diamond companies had taken advantage of a loophole in the law to gain bank finance by exporting and importing and then re-exporting diamonds.
He said that" irresponsible banks" financing rough purchases were also part of the reason for rising rough prices. He alerted diamantaires to the problem of becomingoverleveraged since interest rates, particularly in the United States and Europe, will eventually start rising.
"Expect bank liquidity to tighten up; expect volatile demand and prices; and expect rough diamond prices to continue being manipulated," he said. "Expect higher interest rates and tight money, don't manufacture unprofitable rough, and support small businesses because they can bring about change, not large fat companies. Don't chase rough goods, don't chase the banks. Chase customers.
"Leave manufacturing that is not profitable to the suckers to do. Don't manufacture – buy polished from them. Buy from small companies and support them since they are the one who can bring about change.
"We should aim to be the world's leading diamond trading center. Buy the right diamonds at the right price, at the right time and for the right customers. Stop wasting your time with rough, and invest in finding customers since they are the source of your strength.
"Do business with companies that don't speculate since the future belongs to firms that are transparent, fair, honest and competitive. Don't base your profits on rising diamond prices but on the added value you can bring to diamonds."
