FOCUS 焦点 12 | JNA January/February 2024 The glitter of diamonds The last quarter of 2023 was more promising for the diamond trade, after a prolonged period of soft demand. According to Yoram Dvash, president of the World Federation of Diamond Bourses (WFDB), November 2023 saw a decrease in the global stock of polished diamonds and a strengthening of natural diamond prices. November is traditionally a strong month for diamonds. India’s decision to freeze diamond imports for two months helped reduce diamond quantities in the market, added Dvash. “That is why we are seeing the beginning of a strengthening in prices. We are expecting that in January 2024, the market will continue to improve,” he explained. At the 2023 CIBJO Congress in Jaipur last November, the first in-person Congress since the pandemic, Mahiar Borhanjoo, CEO of diamond data aggregator UNI Diamonds, said that the diamond industry is cyclical and price decreases were now flattening. On the market slump, he said, “I blame Covid because there was pent-up demand and high sales, inventories got depleted, leading to short supply that further caused people to switch to other products. But that unusual demand is gone, partly because people feel less of a need to celebrate loved ones than they did at the height of the crisis.” Smaller rough diamond Sights at De Beers could also help bolster the world diamond market in February and March 2024. The impact of a Group of Seven (G7) consensus to restrict Russian diamond imports, meanwhile, remains to be seen. The move drew mixed reactions from the trade, with the World Diamond Council (WDC) and the WFDB saying they support the high-level decision pending further consultations while the Gem & Jewellery Export Promotion Council (GJEPC) said the G7 decision was not surprising although it “raises valid concerns” for the Indian gemstone and jewellery trade. The ban on imports of non-industrial diamonds that are mined, processed or produced in Russia took effect on January 1, 2024. Further phased restrictions on Russian diamonds processed in third countries will be carried out on March 1, 2024. Harsh Maheshwari, executive director at fancy colour diamond specialist Kunming, said the fancy colour diamond segment continues to enjoy a certain level of robust demand amid political and economic instability, owing to the goods’ rarity and limited supply. Prices, too, are generally stable. Maheshwari noted, “The consumers that usually buy fancy colour diamonds already appreciate their uniqueness. And especially in a market like this, when people are so uncertain, there is generally a lot more who are looking to find something more unique and stable.” Apart from perpetual favourites yellow, pink and blue diamonds, orange diamonds are gaining steam in the market, with the different shades of orange – bright, saturated, pumpkin or more neutral and pastel – resonating with today’s buyers. Fancy colour diamonds are also viewed as an alternative investment and tangible asset, and this contributes to solid market demand, said Maheshwari. Glowing opportunities Gübelin Gem Lab’s Nyfeler said the rise in market demand brings a bigger challenge for gemmological laboratories. In particular, low-temperature heat treatments in rubies and pink sapphires are tricky to determine in certain cases. Also becoming more commonplace is oiling, not just of emeralds, but of rubies, spinels and Paraiba tourmalines. And this issue needs be addressed more strictly by gemmological labs. Moving forward, an increasing number of wealthy consumers will probably invest in gemstones and jewellery for adornment or investment, he said. “There is a healthy future for those in our industry who are willing and capable to cater to this demand with top-quality goods that are transparently sourced and priced,” added Nyfeler. Transparency and traceability will continue to be critical factors in the gem and jewellery industry. As such, rising demand for high-quality coloured gemstones and traceable gems alongside educated end-consumers are potential growth drivers in 2024. For his part, Sean Gilbertson, CEO of ruby and emerald dealer Gemfields, said the coloured gemstone segment will remain relatively steady and in good shape, absent any market-moving disruptions such as Covid-19. Lubo Ivanko / Shutterstock.com Sapphire mine in Madagascar 马达加斯加的蓝宝石矿
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