Articles and News

Industry News: Rap Cautions About Prices, Ethics and Millennials; DEF Launches Empowerment Jewelry June 05, 2013 (0 comments)

Rapaport Cautions Trade Over Prices, Millennials, and Ethics

Las Vegas, NV—Speaking to jewelers, dealers, and manufacturers at the JCK show on Sunday, Martin Rapaport, chairman of the Rapaport Group, warned the diamond industry not to buy overpriced rough. He blamed both Indian government credit policy and irresponsible banks for overextending credit to the diamond trade, resulting in inflated rough prices. Rough prices have increased 225% in the past five years, to the point where they’ve exceeded polished prices in some cases. It’s a situation that is simply not sustainable, he said.

Rapaport also identified significant opportunities for the diamond trade including sales to Millennial consumers, buying from the street, and development of investment diamond markets.

“Anyone who can’t sell to Millennials should get out of the business now,” he cautioned.

The Millennial generation is very narcissistic, he said, pointing out Time magazine’s comparison of Millennials to their Boomer parents. These children of the “Me Generation” Boomers are “the Me Me Me generation,” he said. He compared them to cats—independent—as opposed to dogs that are hard-wired to follow a pack. Millennials also grew up with everything customized, and they expect it in their jewelry as well, he added.

Separately, Rapaport addressed ethics, both within the industry and in sourcing. He called on the diamond trade to take legal action against laboratories that systematically over-grade diamonds, and against retailers who misrepresent the quality of the diamonds they sell to consumers. He repeated his previously-mentioned belief in the street as a source of supply; he estimates at least 25% of the current diamond supply is coming back from consumers.

But he said the greatest threat to the diamond industry is the ethical challenge in both sourcing and manufacturing. He cited gem workers in India dying from silicosis, and urged the trade to establish reliable source certification systems that ensure the legitimacy of the products we sell. 

“It’s time for the diamond and jewelry industry to clean up its act,” he said. “Rough price manipulation, diamond over grading and production procedures that threaten the health and lives of workers must stop.”

 

De Beers' Varda Shine Addresses DEF Diamonds In the Sky Breakfast

Las Vegas, NV--The Diamond Empowerment Fund’s (DEF) opening-day Diamonds In The Sky breakfast at the JCK Show welcomed a roster of industry luminaries in support of DEF’s Diamonds for Good mission. Varda Shine, executive vice president of global sightholder sales for the De Beers Group, and a DEF board member, gave the keynote address.

Guests were greeted by models showcasing the latest trends in diamond jewelry, including a HOUSE of WARIS for Forevermark diamond pendant with a 14.58 oval Forevermark center diamond, selections from the Dalumi Group’s Swana and Golden Diamonds Collection, and DEF’s new line of Empowerment Jewelry from Royal Asscher, Donna Distefano and Banneker Watches.

Models show the new Empowerment Jewelry Collection to benefit the Diamond Empowerment Fund. In addition to DEF's signature green malachite bracelets (shown top of page and on left model), the new Empowerment Jewelry collection features pieces by Donna Distefano, Royal Asscher, and Banneker Watches.

In her address, Shine affirmed the importance of the Diamond Empowerment Fund for the industry as a way to be responsive to consumers. “We are seeing a new kind of consumer: faced with far greater choice on where to spend their money. These consumers are looking for ethical purposes, looking for additional reassurances about what it is they are buying. When they do spend money on diamonds, which symbolize love and emotion, they want to know that what they are purchasing has added real value somewhere in the world. 

“Put that together with producing-country governments wanting to have a bigger, better part of what is happening in the diamond pipeline and that creates great opportunity to do new and different things," she concluded.

She highlighted how DEF gives businesses an opportunity to support the development of new leaders in Africa through higher education, while De Beers' Forevermark brand fulfills an important role in the U.S. market of giveing retailers a steady source of diamonds that are not only responsibly sourced, but also promise to give back to the communities from which they come.

In addition, Uzi Levami, CEO of Sarine Technologies and title sponsor for the breakfast spoke in support of DEF’s new Diamonds for Good membership program.  Ilan Amit, chairman of the Malca-Amit Group of Companies, an inaugural DEF Empowerment Circle Partner, stressed the importance of ensuring consumers are aware that diamonds are, and continue to be, a force for good for so many worldwide. 

"The diamonds for good message to consumers is as important as the beauty and promise that diamonds represent to them. Malca-Amit joined DEF as a Perennial Sponsor because we, like so many others in the industry, know that benefiting and supporting the communities in which we work is a privileged responsibility,” said Amit.  “Giving back to local communities whose very livelihoods depends on the diamond dream is what social responsibility is all about. It's not an option, it's simply the right way to work."

Sarine Technologies was joined by Green Diamond Sponsors Forevermark USA, International Gemological Institute, and JCK.  Empowerment Circle Sponsors of the Diamond Empowerment Fund include Dalumi Diamonds, Malca-Amit Secure Logistics, Leo Schachter Diamonds, Sterling Jewelers (Kay Jewelers and Jared The Galleria of Jewelry) and Tiffany & Co.

DEF followed up the breakfast with a “Doing Good is Good Business” presentation led by Dr. Benjamin Chavis, DEF senior strategic advisor, and featuring DEF scholar Biggie Tangane from Botswana, and Jennifer Miller from MJ Christensen Diamonds in Las Vegas. DEF ended the night with a Diamonds in the Sky VIP celebration at Marquee nightclub, to thank its long-time supporters and Empowerment Circle Partners.   

For more information on joining either the Empowerment Circle or Diamonds for Good Membership Program, please visit www.diamondempowerment.org.