Diamond News
Disillusionment. This is what the diamond industry is experiencing. The World Federation of Diamond Bourses recognizes the crises, how could they not?
De Beers' pricing and marketing policies have resulted in profits so low, diamontaires are dissatisfied, frustrated and fed-up.
Gary Ralfe, recently-appointed managing director of De Beers has repeatedly stated that De Beers will not reduce the price of gem-quality rough. This time, they may have no recourse but to sit-up and pay attention (to the industry).
While it is true that most sight holders are not willing to challenge De Beers (for fear of penalization), not everyone is willing to kowtow to their monopolistic ways.
Several producers are in favour of a ultiple -channel (rough) distribution system; the Canadian producers, for example, will not be selling all of their production to the CSO.
De Beers has been "calling the shots" for seven decades, however, without a viable solution (from the CSO), the single-channel marketing system that has worked (?) for so many years will find itself in jeopardy.
It would appear as though the market is ready, willing and finally strong enough to support a multiple-channel distribution system. |
