At the start of November, a diamond conference was held in Dubai. As usual, few places in the world can combine substance, politics, business, and networking as effectively as Dubai. A huge shout-out goes to Ahmed Bin Sulayem, Executive Chairman and CEO of the DMCC, and Special Advisor for Precious Stones to the DMCC, Martin Leake, along with their dedicated team.
What were the highlights of this illustrious conference, and what do we hope to see moving forward? I will start by expressing my bias: the Young Diamantaires had a strong presence. The team organized several outstanding events, including a business forum that received rave reviews, as well as enjoyable dinners and social evenings. Another shout-out goes to Rachel Sahar and the team , for their significant efforts in coordinating these events amidst numerous other functions happening simultaneously.
As is customary at such conferences, there was an in-depth discussion about the state of the market. Few require much updating on this topic. Clearly, in Australia, diamond engagement rings priced below $10,000 are predominantly catering to the the lab-grown segment; however, this trend shifts significantly for rings priced above $10,000, particularly those around $15K and higher. It is evident that finding high-quality stones in the 2 to 3 carat range has become increasingly challenging. This difficulty largely stems from manufacturers reducing their rough purchases due to previous price declines affecting their current stock.
Key Topics of Discussion
Traceability and sustainability were again hot topics at the conference. A pertinent question arose: what can we learn from other industries? My following comments may be controversial, but I will express them, nonetheless. While I appreciate the importance of sustainability and traceability, the conversation we are led to believe is crucial to consumers—supported by research—does not seem to translate at the retail level.
Allow me to illustrate with an example: if you conduct a marketing poll asking people whether they want to know where their potatoes are grown, most will likely respond with indifference or a tentative “yes.” However, if I were to ask if they would like a document detailing every step their hot chips took from farm to table each time they eat them, most would find it unnecessary and disruptive to their enjoyment of the meal.
Politically, we understand the significance of using traceability as a negotiation tool to achieve better working conditions and rights across various industries. However, based on countless discussions with hundreds of jewellers (and I am not exaggerating), only around five have mentioned receiving inquiries from customers about where their diamonds originated. In fairness and for transparency’s sake, the only niche where sourcing appears valuable is among those wishing to purchase Argyle Diamonds or Canada Mark diamonds when it comes to natural stones.
While I recognize the political importance of these discussions, I struggle to see consumer interest translating into tangible value regarding these issues.
ESG Regulations
Additionally, there was a lively discussion regarding ESG regulations on diamonds. For those unfamiliar with ESG, it stands for Environmental Social Governance and has become significant in the diamond industry due to a global shift towards sustainability and ethical practices. It is widely acknowledged that traditional diamond mining processes have caused substantial environmental degradation—encompassing excavation, energy consumption, and water usage.
What is impressive is the substantial progress made in these areas—particularly regarding recycling efforts, returning land to its original state, and creating wildlife sanctuaries that allow safe passage for animals where diamond mining has occurred. These improvements are evident both in Africa and Russia.
Carbon Neutral
While there are ambitious goals for diamond companies aiming for carbon neutrality, it is essential to note that achieving this status can sometimes involve purchasing carbon credits. This means that while companies may appear carbon neutral on paper, they may not be addressing the underlying carbon emissions effectively—a situation often described as “taking from Peter to pay Paul.” If I am mistaken in this assessment, I welcome correction.
Future
Two critical areas warrant attention: first, the World Diamond Council must be empowered to redefine its role considering dramatic changes in the global diamond market since its inception nearly 25 years ago. The market conditions of 2000 need re-evaluation to address contemporary market forces effectively.
Second, there was exceptionally positive feedback regarding major trade organizations in the UAE, India, and Belgium agreeing to financially support the Natural Diamond Council (NDC) by increasing budgets aimed at developing dynamic marketing strategies for strengthening the natural diamond segment. I have observed similar conversations in the past and hope that all parties involved recognize our collective responsibility in contributing necessary marketing funds.
On a personal note, I have complete confidence in David Kelly and his team at NDC; if given a significant budget increase, they could effectively raise consumer interest in natural diamonds. We can draw inspiration from successful marketing strategies employed by brands like Tiffany & Co., which have utilized high-profile figures such as Beyoncé and Jay-Z.
Thus, my question is: how do we negotiate with stars like Taylor Swift, Zendaya, Timothée Chalamet, Chiara Ferragni, Simu Liu, Halle Berry, and Charles Gross to promote our narrative? If they all proclaimed “I love Natural… Diamonds,” imagine the potential impact on consumer perception.
Trade well!
Rami Baron
