GemThoughts

Late last year there were two events in New York about the diamond business.  I'd call them bookends to the business, in that they address two real concerns - the image of diamonds, and the growing presence of man-made diamonds (MMDs). The first was the presentation by DPA (Diamond Producers Association) on the new advertising and promotional program for natural diamonds, "Rare is Real."  This was, finally, an attempt by the leading mining companies to rebuild the natural diamond image in the minds of consumers.  Two ads were shown (you have probably seen them by now) and I liked them both, if that means anything, while other people were very dubious.  Both were appeals to the millennials, with different approaches, though both skated around the classic themes of commitment and happiness.  As I think further about it, both reflect lifestyles that most Trump supporters, and even many Clinton supporters, probably disapprove of.  In introducing "...

A little dust up lately about the Kimberley Process.  A noted market observer called it BS, and others responded by saying it has value.  We have been hearing this give and take since the KP was instituted a couple of decades ago, so it comes as no surprise. Does it have a future, and does it serve a purpose?  Yes and no on both points.  Perhaps it is time to look at it again. The KP was developed with significant De Beers encouragement and participation when the "conflict/blood diamond" scare first came up.  There was good reason to be concerned, as the association of diamonds with the financing of brutal human abuses and chaotic warfare in Africa.  Conceptually, there was no argument about its objectives - stop or intercept conflict diamonds from reaching the markets.  The carefully built image of diamonds could be destroyed if the public took on this association. No intent here to be cynical, but the industry was looking to protect itself....