The diamond manufacturing business is “under threat” because of squeezed profits and decreased demand for diamond jewelry, said International Diamond Manufacturers Association president Maxim Shkadov in a public message posted on the organization’s website.
“Sales of diamond jewelry are declining, and are losing market share within the luxury goods consumer market,” Shkadov said. “A joint, dynamic effort is needed to increase demand for diamonds.”
He said that rough producers, who have the most at stake, should fund an industry promotion effort.
“The question is therefore, why are they not stepping up to shoulder that effort?” he asked.
He also accused rough suppliers of depleting their clients’ resources by demanding rough prices that are higher than those of the polished” and “reducing prices month after month instead of limiting the flow of rough to the oversupplied market.”
“The diamond polishing business is a money-losing business,” he added. “Members of new generations in family businesses don’t see much sense in carrying on.”