The R&M “Lettre”

The diamond industry is emerging from the Covid-19 crisis, says Rapaport Senior Analyst Avi Krawitz, who has identified five trends shaping the market in 2021.

Global luxury sales could return to pre-pandemic levels this year, boosted by a strong recovery in China and an unexpected early rebound in the US, according to Bain & Company.

The diamond market can return to normalcy after its impressive growth at the beginning of the year thanks to strong jewelry sales, rising profit margins for cutters and a shortage of rough diamonds. Midstream margins have decreased as the diamond prices continue to rise suggesting that the market is overheated.

Israeli bank financing of the diamond industry was cut by 33% in 2020, falling below $500 million for the first time in 30 years. The decline reflected shrinking activity in 2020 and a decline in reliance on bank financing. But mostly, it reflects banks’ balking at dealing with the complications of working with diamond firms.

Health concerns aside, the diamond trade is in better shape than it was a year ago. In fact, the market dynamic is arguably healthier than it has been at any point in the past decade. That’s increasingly evident as polished prices continue to firm.

Rubel & Ménasché, the well-known Paris-based diamond company, has been supplying the jewelry houses of Place Vendôme with high-end  goods for over 50 years.

The period 2020-21 of the global diamond and diamond jewellery industry could be termed as the most trying and arduous ever faced in recent times. When COVID-19 made its appearance, the diamond industry as part of the luxury sector was majorly impacted, due to lockdowns, travel restrictions and other hurdles.

Last year, Australia’s Argyle diamond mine closed after 37 years of operation. [In March], Melbourne University Publishing released Argyle: The Impossible Story of Australian Diamonds, a comprehensive history of the mine by Stuart Kells.

Customers of the Gemological Institute of America (GIA) are experiencing severe delays to grading submissions, creating worries about inventory management, Rapaport News has learned.

The diamond industry, which bounced off the bottom in July and August last year, received a strong support from the strong holiday jewellery sales, and in 2021, it is ready to compete in the growth rates with other beneficiaries of the global economic recovery from the COVID-19 pandemic.

Lately, the Indian diamond industry, on the whole, had been reeling with the effects of the implementation of GST and demonetization with several diamond polishers losing their jobs.

How well has the prominent Asian country weathered the crises of the past year, and what are its prospects for growth?