Moti Ganz, Israel Diamond Institute chairman, told diamond miners, producing countries, and fellow manufacturers, there is no shortage of rough or polished diamonds, at a session devoted to “Producer Strategies” at the Third International Rough Diamond Conference that opened Monday in Tel Aviv.
“There is no shortage of rough. But even more than that we also have plenty of polished,” he said. “Manufacturers have accumulated stock in an unprecedented volume of $14 to 17 billion.”
Ganz called on producers to refrain from the use of tenders and auctions, which he said hurts manufacturers and, in the long-run, the producers themselves.
Ganz said that rough diamonds have no value without the manufacturers, and that these must receive a rough supply on a regular basis according to periodic, fixed sortings. “Only under these conditions can I commit to chains and stores,” Ganz said. “Only thus can I guarantee that the rough you produce will be worth something to the customer in the store.”
Ganz also delivered a clear message to manufacturers: no customers, don’t polish. He said that manufacturers must stop purchasing rough and polishing diamonds for stock. “All industries, worldwide, have moved to manufacturing by demand…Only the diamond industry has failed to join this global trend,” he said.
Ganz implored rough producers to support the promotion of diamonds as a luxury product.
“Every rough producer should take part in the generic advertising of diamonds. This task must not be left in the hands of a single rough producer,” he said. In Ganz’ view all producers should act as De Beers does—to spend 3 percent of sales turnover on advertising. “In the long-run this investment will be repaid, as the awareness of diamonds increases in the consumer market.”
The”Producer Strategies” session also featured De Beers managing director Gareth Penny, Harry Winston Diamond Corp. president Bob Gannicott, Gem Diamonds managing director Clifford Elphick, Alrosa president Sergei Vybornov, Namdeb managing director Inge Zaamwani, Mwana Africa CEO Kalaa Mpinga, and Petra CEO Adonis Pouroulis.
The Third International Rough Diamond Conference was launched Monday with the gala re-opening ceremony of the Harry Oppenheimer Diamond Museum in Ramat Gan. The conference was attended by over 400 participants from Israel and around the world.