Challenges Facing the Diamond Industry in the Luxury Product Market
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Transcript of Challenges Facing the Diamond Industry in the Luxury Product Market
Challenges Facing the Diamond Challenges Facing the Diamond Industry in the Industry in the
Luxury Product MarketLuxury Product Market
BASELWORLDBASELWORLD April 1, 2005April 1, 2005
Shmuel SchnitzerShmuel SchnitzerPresident, Israel Diamond ExchangePresident, Israel Diamond Exchange
President, World Federation of President, World Federation of Diamond BoursesDiamond Bourses
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Buyer Entries to Israel
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
1996 1997 1998 1999 2000 2001 2002 2003 20042
3,375
1,017
1,782
4,529
1,622
4,395
2,389
5,2095,509
3,955
2,234
3,407
5,150
2,920
3,562
6,333
3,375
1,017
1,782
4,529
1,622
4,395
2,389
5,2095,509
3,955
2,234
3,407
5,150
2,920
3,562
6,333
‘01 ‘02 ’03 ‘04 ’01 ‘02 ’03 ‘04 ‘01‘ 02’ 03‘ 04 ‘01 ‘02 ’03 ‘04
4.5%+
31%+
30%+
15%+
2004 Compared to Previous YearsIn $ terms : Jan-Dec, net values, $US million
Polished Export Polished Import Rough Export Rough Import
DTC816
DTC831
DTC887
DTC930
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0.930.891.070.71
1.19 1.180.82 0.84
5.15
4.003.80
2.72
3.87 4.16 4.40
5.695.50
4.64
3.35
5.245.67
4.455.10
9.509.00
6.906.60
8.448.80 8.50
6.85
0.00
2.00
4.00
6.00
8.00
10.00
12.00
1997 1998 1999 2000 2001 2002 2003 2004
DTC Direct Supply to Israel
Israel Rough Import
DTC Worldwide Sales
Global Rough Sales
Global Sales, DTC Supply and Israel’s ShareGlobal Sales, DTC Supply and Israel’s Share
$$US billionUS billion
3.37
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USA21%
India31%
Israel20%
Belgium28%
Bank Debts in Global Industry$(US billions )
2.4
0.52.9
0.71
3.1
0.82
3.6
0.88
3.6
1.04
3.6
1.06
4.4
1.15
4.6
1.43
4.9
1.47
5.5
1.5
6.9
1.6
7.7
1.8
0
1
2
3
4
5
6
7
8
9
10
93 94 95 96 97 98 99 '00 '01 '02 '03 '04
Rest of Industry Israel
Israel and the World
$US billions
Country Comparison
2003 average% ,
*Rest of Industry – 3 largest centers5
Finance Intensity1997 – 2004, $US million, percent
$US million
1,7821,5961,4961,4701,430
1,1501,0601,040
10.7%
13.2%
10.6%11.1%
13.7%
9.8%11.0%
10.4%
0
500
1,000
1,500
2,000
2,500
3,000
1997 1998 1999 2000 2001 2002 2003 2004
0%
3%
6%
9%
12%
15%
average annual debt
finance intensity
Percent
Finance Intensity =
Debt(Export+Import)
Total 2004 Turnover
$18.2 billion
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Conflict Diamonds
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Money Laundering
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Treated and Synthetic Diamonds
From ‘Wired’ Magazine, Sep. 2003
Detection
Disclosure
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Treated and Synthetic Diamonds
Diamond Sure
Photo courtesy of DTC
DETECTIONDETECTION
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Treated and Synthetic Diamonds
DETECTIONDETECTION
Diamond View
Photo courtesy of DTC
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Treated and Synthetic Diamonds
DETECTIONDETECTION
D-Screen
Photo courtesy of Antwerp Facets Magazine, HRD
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Treated and Synthetic DiamondsDisclosure
Resolution from 2004 World Diamond Congress, Resolution from 2004 World Diamond Congress, New York:New York:
“The WFDB resolves to cooperate fully with any other internationally recognized trade associations and companies to formulate a common standard of disclosures and nomenclature for synthetic diamonds. Furthermore, the WFDB calls upon all the laboratories to refrain from issuing grading reports for synthetic diamonds. This should be clear and unequivocal so that the consumers are fully aware of, and confident in, the nature of the product they are purchasing.”
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