Chaim Even-Zohar Gives Analysis of Diamond Trade Challenges

Industry analyst provides diamond industry members with worldview of issues facing the global trade.

The second day of the US & International Diamond Week was wrapped up with a comprehensive analysis of the problems facing the global diamond industry by Chaim Even-Zohar.

Although his presentation largely covered the difficulties faced by the manufacturing sector, he started out by saying that he expected a 4 percent increase in retail sales this year compared with 2012, and that the sales would, for the first time, be higher than those for 2007.

He forecast that rough prices will be flat for the next 2-3 years, however that depended on liquidity.

Speaking on the decline of the rupee, that has fallen against the dollar by around 20 percent since last May, he said that every decline of a rupee meant $100 million less in finance.

Even-Zohar spoke about developments at the world's two largest miners – De Beers and Alrosa, saying that while the Russian company was content to concentrate on mining, De Beers was increasingly trying to go downstream.

However, its Forevermark brand diamonds were not a great success and its De Beers Jewellers stores venture has lost money in the decade of its existence.

He said that under Anglo American, De Beers executives were being required to provide as much money as possible for the parent company and that short-term considerations were the order of the day.

Meanwhile, the Diamond Trading company is losing its diamond expertise.

Even-Zohar also had harsh words for events that were "being cooked up" at the Kimberley Process that would prevent cash payments for rough purchases and an unrealistic expanded chain of custody.