Strong emotional statement about the desire to stand out from the crowd

The other day I was with my son at the Apple store. We both looked for phones to buy them. I was amazed that even in the middle of the working day the store was full of buyers, both men and women, mostly between the ages of 18 and 30.

"Technology" is the fashionable word of the current society in the whole world, so it is clear that high-tech goods have removed all boundaries between the sexes. It is also quite natural to see young people gathering in branded shops selling equipment at the most inappropriate time of the day. But why was everyone here at the Apple store?

Then it dawned on me. Apple's products have penetrated people's lives. Consumers like this interference of goods. All these people were here to enable Apple to penetrate our lives. Moreover, even though many in this store were limited in funds and bought goods at a low or average price, almost all with excitement purchased prestigious goods worth over $ 1,000!

I almost immediately realized that as a designer and manufacturer of diamond jewelry, I am part of an industry that simply serves the existing tradition of wearing jewelry. This tradition, especially the purchase of precious jewelry, with which I am well acquainted, also quickly loses its significance for modern youth. Can the products of our industry cause such an agiotage among the young? So that they are so eager for goods worth $ 1,000?

The vast majority of us, as participants in the global industry, still have to worry about the price of gold or diamonds. Our products are just a connecting tool, that is, products that hold raw materials together in a form in which we transfer them to consumers. We can not use these materials to create products that penetrate the society, create hype and generate strong desires.

I'm tired of listening to the argument that we can not compete with technology products, because we do not have products that have practical applications in everyday life. To those who say so, I will say, look at the Swiss watch industry. Literally overnight, the watch industry of Switzerland was destroyed by a tsunami that came from Japan in the form of a watch with a quartz movement. Quartz watch mechanisms provided exactly the same accuracy - if not more, as most expensive Swiss mechanical watches at that time, and cost several times cheaper. Many "buried" the Swiss watch industry.

But the Swiss recovered from the blow and took revenge. They did two things: they adopted the technology of quartz watch movements, and they re-created the clock. Devices that just accurately showed the time, they made the personification of personality and style. Swatch has actually turned a Swiss watch out of expensive artifacts into one-time accessories that consumers can buy in large quantities and change them to suit their mood or fit into their clothes.

The most remarkable was the return of Swiss mechanical watches, which were considered obsolete due to the appearance of quartz watch movements. They returned as a strong emotional statement about the desire to stand out from the crowd, and also emphasized the unusual character of their owner's identity, hinting at greater courage and recklessness.

Wrist watches, in general, are currently losing practical significance. Phones, panels in cars and computer screens now show extremely accurate time. Nevertheless, the wristwatch entered the life of people as a certain indicator. Young people now also like certain hours.

The closest thing that the jewelry industry has come up with, creating a product that can enter people's lives, ironically, has been the successful work that it has been doing for many decades, for a comprehensive "umbrella" promotion around the world conducted by the suppliers of raw materials. De Beers diamond company invaded people's lives, telling them that the diamond is in fact a convincing indicator that determines the relationship between a man and a woman. The jewelry industry gladly provided the above-mentioned connecting means - products holding diamonds together, and used a wave of success associated with diamond engagement rings.

Something similar happened in the high-tech industry. For example, several unremarkable computer manufacturers have successfully launched the "Intel Inside" wave - because the manufacturer of these processors contacted directly with the consumer and assured the reliability of their products and the advanced technology applied in them. But people then bought up Apple products, although it used processors made using PowerPC technology, not Intel. They did not need the guarantees of the chip manufacturer. It did not matter to most people when Apple finally switched to Intel processors in 2005.

http://gemkonnect.wordpress.com/2015/09/03/products-that-intervene-in-consumer-lives-what-apple-can-teach-the-jewellery-industry/

Diamonds of almost jewelery quality were still cut mainly in India

As for diamonds, India has the longest history. It was in India that diamonds were first discovered. Long-ago findings turned India immediately into the consumer market for diamonds, where the maharajas and other nobles wore the world's first diamond jewelry.

History of ancient times

It is not known exactly when the diamonds were first discovered along the riverbeds and streams on the Indian peninsula, but there are references to diamonds dating back to the fourth century BC, when Alexander the Great conquered India.

India with its rich history of international trade already at that time was a diamond country. The country, which began to produce diamonds long ago and was a trading center, became the world leader in the production of diamonds and an important consumer market.

So far, the Golconda diamonds mined in the central Indian region of Golconda are among the most sought after in the world. Some of the most famous diamonds, including Hope, Koh-I-Noor, Darya-I-Nur, Orlov and Sanc, are diamonds from Golconda.

As trade developed between India and Europe, diamonds paved their way into the royal courts of Europe, and by the 1400s diamond jewelry became popular, and diamonds were also used to decorate clothing.

The high demand for Indian diamonds caused the depletion of the country's diamond resources by the late 1700s or early 1800s.

The twentieth century - the organization of the industry

In the 1960s, Indian diamond cutters decided to formally establish a diamond and diamond industry in their country. A group of traders with semi-precious stones, cutters and jewelry manufacturers, mainly from the Indian state of Gujarat, began to engage in a new gem and sought to get out of their rural poverty.

They attracted the attention of De Beers, and began courting the giant of the industry in order to obtain sustainable supplies of diamonds. Although De Beers initially allocated only a small percentage of its goods to the Indian market, it decided to increase the supply by reclassifying technical diamonds that were on the verge of diamond-quality diamonds to diamonds of "almost jewelery quality", and then supplied them to the Indians in large quantities. The first site was allotted to a consortium called the Indian Diamond Export Corporation.

At first they worked with diamonds of poor quality and purity intended for the US market. The low prices for these diamonds required a very low-paid workforce, something that the Belgian and Israeli polished diamond production centers could not provide.

The Indian industry was mainly engaged in cutting and polishing small diamonds weighing 0.20 carats and less. Some of the small diamonds passed only a partial faceting and polishing, resulting in what is known as "Akht Kant" - from the Dutch "eight faces" by the number of polished faces.

We started small. In 1966, polished exports from India reached just $ 17 million. But this modest start with a long road ahead laid the groundwork for a new global diamond center.

New era for diamonds

An important leap of India in the modern era and the beginning of a new chapter in the diamond saga of the country followed after the discovery of diamonds, this time in Australia. In 1985, large diamond deposits were discovered in western Australia, and Indian granulators were best equipped to cut and polish these diamonds, which were mostly of a low color and purity category.

There were huge quantities of diamonds, for which larger shops were needed. These shops, with the help of growing financing provided by local banks, quickly turned into large factories. This major transformation included the transition from large traditional polishing circles called "Ghantis" to the use of modern tools and equipment instead.

Along with raising awareness of how to get the highest cost for small mele diamonds and the smallest and cheapest diamonds, the growing industry has formed a new understanding of how to cut larger and more expensive stones. It quickly turned into a leading diamond-diamond center, using the best available technology.

Over time, these efforts have turned the city of Surat into the world's largest diamond production center, contributing significantly to the development of the local economy. Local factories are among the largest and most modern in the world and have a highly skilled workforce, the number of which reaches almost one million during peak periods.

Although Surat became the center of cutting and polishing, in Mumbai (the financial capital of India) there was a flourishing of the headquarters and shopping centers of these companies in the area of the Opera Theater in the southern part of the city. The expansion was not limited to India. The families of Mumbai, engaged in diamonds and diamonds, opened offices in Antwerp and expanded the geography of their activities around the world. The Antwerp offices of these Indian companies ensured that a steady flow of diamonds, mostly traded in Antwerp and delivered to Antwerp, found its way to India and to the Surat granulating and polishing factories.

Expanding the geography of activities around the world

In the recent past, many Indian companies have expanded their operations to the developing diamond center in Dubai, which has become the center for the trade of diamonds coming from Africa.

The third center, located also in Mumbai, has become a free SEEPZ zone. In this zone there are diamond production facilities, but mainly this is the place of production of jewelry. All stones coming here for the production of diamonds are for export. The combination of large volumes of diamond imports, the continuous improvement of skills in cutting and polishing, the availability of financing and a local supply chain from diamonds to the production of jewelry, has turned India into a global diamond power, which it is now.

By the 1990s and early 2000s diamonds of almost jewelery quality were still cut mainly in India. But the center has long been able to work with any kind of product, and it offers buyers a wide choice of almost all diamonds of any color / purity / size and the creation of combinations - and in large quantities. In recent decades, India has deprived Israel of the throne of the world's largest exporter of diamonds.

In the early 1990s, the Indian economy turned to face a policy of freer market relations, which led to the growth of a new middle class, which began buying diamond jewelry along with traditional gold jewelry. This sharp increase in the Indian diamond industry has provided it with a new and growing consumer base, which has benefited from the strengthening. De Beers decided to include the Indian consumer market in its species marketing campaign, and to launch a jewelry line, so the Indian diamond industry received an important additional source of income - its own local community.

http://www.ehudlaniado.com/home/index.php/news/entry/india-where-it-all-began

Construction of the first diamond mine in the province of Quebec

The increase in world diamond production by almost 4% in value last year coincided with a drop of almost 4% in terms of volume. The data published on August 25, the Kimberley Process Certification Scheme, indicate that with the increase in prices, the volume of receipts has remained, despite a decline in output. But if optimistic forecasts are made in December, new sources will be needed to meet demand. One of the most promising places is Canada, which, according to the Kimberley Process, holds its third place in the global volume of production at a cost, even taking into account that Russia has pressed Botswana in second place.

Most recently, Zimtu Capital TSXV: ZC, which on August 25 announced the start of exploration works on the Munn Lake project, which is led by this company and a partner with a stake in the project, began to operate in the region. Despite the work carried out between 1996 and 2007, the cost of which is estimated at $ 5.7 billion and during which two diamond-bearing kimberlites were discovered, a 14,000-hectare site still requires modern geological prospecting.

Earlier, the extracted sample weighing 581 kilograms from the kimberlite Yury (Yuryi) on this project showed the presence of 226 diamonds, among which there are 62 macrodiamonds larger than 0.5 mm in diameter. A sample weighing 42 kg from the kimberlite of Munn Lake gave two macrodiamonds and 12 microdiamonds. Over 2,500 samples allowed the discovery of at least five distinct groups of kimberlite indicator minerals (KIM) on the territory of possession.

Zimtu now has a sampling team to find KIM for evaluating previously conducted samples and "conducting an in-depth study of the diamond potential of each site".

Earlier this month, Arctic Star Exploration TSXV: ADD announced plans to conduct exploration work on its 54,000-hectare T-Rex site in the Lac des Gras region. In the course of earlier work, dozens of kimberlites were found, most of which are diamondiferous, as the company claims. Previously, the results of a gross sample weighing 436 kg from Jack Pine kimberlite, which did not meet the requirements of the standard 43-101, showed the presence of 572 micro-diamonds.

Another 299 microdiamonds were found in a 360 kg sample from Jack Pine kimberlite, obtained during drilling in 2005, according to the results meeting the requirements of 43-101.

In June of this year, the Arctic Star reported revised North Arrow Minerals TSXV: NAR for Redemption, their joint venture in the Lac de Gra. The initial study of terrestrial geophysical data indicates that there are a number of targets suitable for the winter drilling program in 2016, Arctic Star said. Her partner is also conducting a survey of surface geology data in order to better define and interpret a group of kimberlite-satellite minerals at the South Coppermine site in the area.

Canterra Minerals TSXV: CTM, which has 97,220 hectares of land in the Lac des Gras region, said in June that it identified several sites "that guarantee further detailed geological exploration, including drilling," along with other sites on which Boulder sampling of boulder clay and geophysical studies.  

Last month, Margaret Lake Diamonds TSXV: The DIA announced an agreement to be approved by TSXV regarding the acquisition of the remaining 40 percent ownership in the Margaret Lake area, after which the company will become the full owner. The company plans to conduct a winter drilling program to check the sites found during last year's aerogravimetric survey. The area of 19,716 hectares is located close to the northwest of the Kennady North project of Kennady Diamonds (TSXV: KDI), the most advanced project in the region, apart from the future mine of Gahcho Kué, which Kennady surrounds with three Parties.

Kennady, assessing four kimberlites on an area of 61,000 hectares, reported on 26 August results for a 443-ton gross sample from the Kelvin tube. Out of 16,247 diamonds mined in four zones of the "most diluted" southeast part of the deposit, 35 stones weighed in excess of one carat. These zones showed an average of 2.02 carats per tonne of ore, as for diamonds larger than 0.85 millimeters.

Earlier this month, Kennady conducted a private placement of securities for $ 4 million.

Diamond Mines of Canada: in operation or in the process of improvement

Canada is in the forefront of countries trying to compensate for the supply shortage of diamonds, and new mines are being commissioned as others are depleted. In addition to three enterprises in the Northwest Territories and the Victor (Victor) mine of De Beers in Ontario, the other two are under development.

Of the three mines in the Lac de Gra Region, the remaining life of Ekati, the controlling stake in Dominion Diamond's (TSX: DDC), is about five years, although the development of the Jay deposit may potentially add another 11 years .

Diavik Mine is a joint venture of Rio Tinto NYE: RIO / Dominion in the ratio of 60/40 shares, will work until 2013 with the introduction of the fourth tube.

The Snap Lake De Beers mine can work until 2028, although production volumes will fall. In March, the world giant said that it might be necessary to change the license for water use to avoid premature closure. In June, the Mackenzie Valley Subsoil Use and Water Use Commission recommended that the government of the Northwest Territories comply with the application.

De Beers' Victor mine, the only diamond mine in Ontario, will face depletion in 2018. The company hopes to postpone this gloomy event by developing the Tango kimberlite (Tango), a small deposit with a smaller content, located seven kilometers to the north-west.

Stornoway Diamond TSX: SWY, currently in charge of the construction of the first diamond mine in the province of Quebec, has planned to commission the Renard mine at the end of next year and the start of industrial production in the second quarter of 2017. Although the potential resources continue to increase, the company estimates that the Renard mine will produce 1.6 million carats per year for 11 years, or about 2% of the global supply.

At the fourth mine in the Lac de Gra Region, which is to become the "largest and richest new diamond mine in the world", the start-up in accordance with the schedule will take place in the second half of 2016. Mountain Province Diamonds TSX: MPV and De Beers, a JV partner, expect that the Gahcho Kew mine will produce an average of 4.5 million carats per year for twelve years.

On the project Star-Orion South, the controlling stake of which belongs to Shore Gold (TSX: SGF) and which is located in Fort A la Corne in Saskatchewan, a spring drilling program was conducted to clarify the resources of the kimberlite Orion South. Although the project was justified in 2011, and in December it passed a federal environmental review, now Shore plans a re-justification to reduce capital costs.  

In addition to the regions around existing and future mines, in the province of Nunavut and in the Pikoo area of Saskatchewan province, significant exploration work is also carried out to find diamonds.

http://resourceclips.com/2015/08/27/looking-to-lac-de-gras/

Global diamond production will gradually decline from 2020

Do not give advertising statements that present a deficit as a reason for investors to invest dollars in the diamond mining sector, to deceive themselves. In fact, like many other goods in the world now, the diamond mining industry is also "drowning" in excess supply. Worse still, against the backdrop of all talk about a decline in diamond sales, world output actually grew in the first half of the year and seems to continue its growth for the remainder of 2015.

The total output of the five major diamond mining companies in the world rose to 47.26 million carats in the six months ended June 30, an increase of 8 percent from the previous year. The shares of ALROSA, De Beers, Rio Tinto, Dominion Diamond Corp. And Petra Diamonds account for approximately 70 percent of the global supply. Taking into account their respective plans, it is planned to increase production by 5 percent to over 50 million carats in the second half of the year, which is the highest level of production for the half year since the financial crisis of 2008
Limited Demand for Diamonds

Of course, neither the diamond market nor the diamond market guarantees such volumes in 2015. Demand for diamonds in July fell to new record low values, as diamond producers reduced their purchases of rough diamonds due to high diamond prices and an oversupply of diamond stocks.

Recognizing the weakness of the market, De Beers allowed sightholders to postpone up to 75 percent of their bids for the remainder of the contract year, while ALROSA made similar concessions to its customers - to postpone the volumes allocated to them in July and August. De Beers also lowered its prices by almost 10 percent on the August website, which affected the fact that some sightholders asked to return already deferred goods. This site closed with an estimated amount of $ 300 million compared with the originally projected amount of $ 250 million.

Still, the demand for diamonds is limited, and the trade in diamonds is cautious. "People buy less and try to keep small stocks," said the Antwerp dealer who was taking part in the International Diamond Week in Ramat Gan this week. "But there's still a lot of goods on the market."

Dealers at this event said that demand from the United States supports the market, as demand from China and - to a lesser extent - India has declined. In addition, the outlook for China has declined, thereby reducing the long-term growth prospects for the industry and increasing surplus.

Diamond miners are making plans

Des Kilalea, an analyst at RBC Capital Markets, expects that the market will continue to surplus, at least until 2018. He said that liquidity levels and a decline in diamond prices will help increase demand and reduce surplus. But Kilali also stressed that the decision on the volume of production of large diamond mining companies will have an impact.

In light of the weakening of the market, De Beers is the only one among the five companies that has cut its production plan for this year from 32-34 million carats, projected in January to 29-31 million carats today. Paul Rowley, De Beers' global sales manager for sightholders, told Rapaport News that the diamond company does not plan to further reduce its production volumes, although it will continue to closely monitor the market.

Therefore, why should not other companies adjust their production volumes accordingly?

Perhaps the most revealing was that Igor Kulichik, Finance Director of ALROSA, said during a recent teleconference that the Russian company would prefer to increase its reserves, rather than reduce production due to high costs of operations to regulate production. He said that ALROSA stocks have already jumped from 14 million carats at the beginning of this year to 17 million carats at the end of the first half of the year. Although the company confirmed its forecast for production of 38 million carats for 2015, he added that by the end of the year, perhaps the reserves will grow even more.

Some suggest that ALROSA can afford to maintain full production, as they did during the financial crisis of 2008-2009, because it can sell surplus stocks to Gokhran, to the state treasury. But a representative of ALROSA said that the company did not sell any volume of diamonds to Gokhran this year, adding that "it is difficult to predict whether such sales will be made before the end of 2015".

In fact, the Russian Gokhran has its own limitations in 2015 after the ruble depreciated by 76 percent over the past 12 months due to the fall in oil prices, creating a big gap in the state budget. It should also be noted that ALROSA sold 18 million carats in the first half, which equals the volume of its production, despite a 21 percent increase in inventories.

Similarly, in six months, including June, Petra Diamonds sales amounted to 1.77 million carats, compared to a production volume of 1.58 million carats. Despite the fact that Petra is striving to achieve the annual planned production of 5 million carats in 2019, the company representative noted that the company's volume is not large enough to influence the conditions of the global market. A representative of the company Dominion declined to comment on this message, as the company has a quiet period before the publication next week of income data.

In addition, Rio Tinto is on track to achieve a production volume of 20 million carats in 2015, a 44 percent increase over the previous year, and the bulk of this growth comes from the Argyle mine in Australia. Kilali said that increasing supply in the market from the Argyle mine could offset the decline in production from the Marange fields in Zimbabwe, where similar types of diamonds are of poor quality. In 2014, production in Zimbabwe fell sharply by 55 percent to 4.77 million carats, according to the Kimberley Process Certification Scheme, and this year it is expected to fall further.

Markets, the driving force of which is the offer

A spokesman for Rio Tinto noted that the Argyle and Diavik mines owned by the company are completely underground operations that can not be regulated. In fact, the creation of stocks may well be a matter of value, not a matter of the market. Diamond companies may also want to maintain production levels, since the main production costs are relatively low, given that energy prices are below $ 50 per barrel, and the currency, for example, the Russian ruble, the RAR of South Africa and the Canadian dollar, are trading close to the record low Levels. De Beers reported that its cost in the first half of 2015 decreased by 10 percent compared to the same period last year.

This sheds light on why production volumes will continue to grow in 2015, and will not decline in the coming years. In addition to the production plans of large companies, a number of new mines are put into operation, which further increases the excess supply volumes. The Mushroom Mine of Lukoil Company was put into operation in 2014 and increases production to full capacity, as well as the Gaghoo mine of Gem Diamonds. The Gahcho Kué mine, which has a high volume and is a joint venture between De Beers and Mountain Province, is due to be commissioned next year, although Stornoway Diamonds has stated that its Renard mine will be ready to start production at 2017 year.

As the projects were commissioned and the old mines closed, De Beers and Bain & Company predicted in their reports that global production will gradually decline from 2020 after reaching a peak around 2018. It may be so, but it seems that there will be a larger volume of diamonds for sale for a long time after these terms, as diamond mining companies accumulate stocks.

There remains one of two possible scenarios for the rest of the market in the coming years. Diamond companies can either sell those excess diamonds at reduced prices - ultimately, each product is sold at some price - or they can hold these diamonds and give them out gradually when demand maintains the price preferred by diamond mining companies.

This second scenario allows us to present the strategy of the past few months in a broader context. Despite the fact that diamond prices have been adjusted by about 10 percent in August, it is unlikely that they will fall sharply again this year, despite prolonged discontent over the low profits of diamond producers. Since diamond mining companies prefer to store diamonds in their storage facilities, rather than in the bowels of the earth, they certainly prefer to reduce the supply and wait for prices to improve in the market. Therefore, the surplus of diamond stocks is gradually decreasing, diamond diamond mining stocks are growing rapidly. Probably, this will allow them to convince investors that in the medium to long term the demand actually exceeds the supply.

http://www.diamonds.net/News/NewsItem.aspx?ArticleID=53296&ArticleTitle=A%2bSustained%2bDiamond%2bSupply%2bSurplus

About the main long-term model of the diamond industry

Answer, without hesitation: how much were the diamond prices on site 7 reduced: by 13%, 9% or by 5%? If you look at the price list, you will see that prices for some goods have dropped by only 2.5%, while for others they have been reduced by as much as 20%. A report on this topic could be based on a simple average value of discounts, and then they would be about 9%. But this is without taking into account the changes in the assortments.

Sightholders agreed that the assortments on this site were smaller, if not much less. De Beers reduced its production, and although it has more reserves than usual, it may still lack certain goods. It is possible that the reduction of assortments is the result of a reduction in some types of products.

If the assortments have decreased, then the price reduction according to the price list may reflect a combination of a reduction in price and a decrease in the value of products. In this case, prices are not lower by 20% or even 13% and, probably, not by 9%. According to the estimates of a major diamond dealer, the real price reduction is 8%. Another insider said that the cost of the goods fell by 5%, and the real price reduction was about 4%. Thus, it seems that the real price reduction was about 7-8%.

The size of price reduction is a real economic issue. Many sightholders continue to state that prices are not low enough to make it prudent to cut and polish, especially in the light of current trends: manufacturers prefer to buy diamonds instead of producing diamonds from diamonds. The reason for this is that it is cheaper to buy diamonds on the market than buying diamonds and doing their cutting and polishing.

The chart below shows changes in prices for three popular boxes: Fine stones weighing 2.4-4 carats, Commercial 2.5-4 carats and Spotted Sawables 4-8 grains. Apparently, the prices for them have changed a little over the last year, and at the most the price reduction - more than half in all three cases - occurred on the latest website. Over the past two years, the price of the price list for these three products has decreased by 12%, 17% and 24%, respectively.
The site was planned for more than $ 200 million, and the remaining purchases included some goods that sightholders were asked to postpone, but changed their mind. In general, sightholders took only what they needed, and only a few boxes were taken for offer on the secondary market. The reason for this is that selling goods on the secondary market often leads to losses. Another reason is the concern that buyers will not pay - later or completely, that will hit cash flow. The goods sold were often sold with a 5 percent premium on a 120-day loan.

Finally, a very small unscheduled amount was requested, and hardly any special products were offered. One insider said that special diamonds were offered on the website of South Africa, but the goods were considered expensive. In total, canceled deferred volumes and unscheduled volumes are estimated at $ 50- $ 75 million.

De Beers is trying to play a positive role, according to the sightholders. The prices were reduced, the volume was reduced (again many boxes were not offered), and there was more flexibility in the offer. In addition, De Beers announced plans to conduct a diamond marketing campaign in addition to the holiday campaign "Brilliant is Forever", conducted by Forevermark.

Still, the sightholders' expectations are very small. Sightholders do not express any optimism about the near future, as they are concerned about numerous cases of default on the market and the persistence of uncertainty. They just do not see the relief from the sites.

POINT OF VIEW OF THE FINANCING PARTY

When the crisis in the diamond and diamond industry began to develop, it was felt that it was created by itself and is not connected with macroeconomic issues. Since then, the fall of Chinese stock markets and the general weakening of the Chinese economy are dragging the world economy back. Prices for such commodities as copper, iron ore and crude oil are falling for many weeks.

Does this have any negative impact on the financing of the diamond and diamond industry? "I do not think so," says Erik Jens, executive director of diamond and jewelery operations at ABN AMRO, a leading diamond financing organization. He actually sees the positive side: "This creates opportunities, leads to consolidation - for example, gives a chance for innovation."

Consolidation in the midstream (middle part of the diamond pipeline) can occur not through the acquisition of companies by each other, but rather due to the fact that some of them are closed, while others appear to fill the emptiness; This is a trend that we are already observing. In the last couple of months, several companies in India, Dubai, Thailand and Israel hastily closed.

When Jens was asked about the main long-term model of the diamond industry - supply reduction and demand growth - he replied that he does not believe that the current decline in China, for example, changes this model. "We will see a slowdown, but this is part of the normal [economic] cycle. Demand will continue to rise, "he says.

On the other hand, inside the industry, he still wants to see stricter control, saying that he "certainly" expects that such industry organizations as the World Diamond Council (WDC) and the World Federation of Diamond Exchanges (World Federation of Diamond Bourses, WFDB) will introduce more stringent controls, for example, the already existing Name & Shame policy (to publicize and shame).

He also expresses dissatisfaction with the high levels of borrowing, which constantly raises the question of the role played by Indian banks. "Indian and Chinese banks learn to understand that everything depends on the knowledge of the industry." He hopes that, after experiencing several failures, they will learn to "act more circumspectly, will learn from mistakes."

http://edahngolan.com/sightholders-dont-see-relief-in-sight/?utm_source=Edahn+Golan+Diamond+Research+%26+Data+Newsletter&utm_campaign=018bd494e0-RSS_feed_newsletter_campaign3_12_2015&utm_medium=email&utm_term=0_3db00ffc52-018bd494e0-319355397

Stabilization of gold prices at lower levels both in the domestic and international markets

The success of IIJS 2015 returned the feeling of prosperity to the industry, and trade in the diamond area of Mumbai was significantly increased. Asia's largest 32nd Indian International Jewelery Show (IIJS), organized by the Gem and Jewelery Export Promotion Council (GJEPC), was unexpectedly successful, given the global downturn . The main guest - Mrs. Rita A. Teaotia, the Minister of Commerce from the Ministry of Commerce and Industry of the Government of India, in her speech highly appreciated the solid foundation of the Indian jewelery and jewelry industry, which is confirmed by the sustainability and performance of the industry for many years.

But, of course, during the next few weeks of this month, the wave of disturbances in Surat has spoiled everything, cutting sharply the diamond production sector. But this industry did not break with such pressure, and the diamond industry again returned to normal by the end of August. At present, the production of diamonds is in full swing. De Beers cut prices by 10 percent on its last website, and diamond producers can expect other diamond producers to follow suit. According to sources, ALROSA did not do this, but reduced the supply in an attempt to achieve equilibrium in the industry. The market expected that diamond prices could change in the next few days due to lower prices for diamonds.

According to sources, many buyers from consumer centers, especially from the United States, were present on the market for annual Christmas purchases of goods. There were also many buyers from other countries, for example, China and Japan, who were looking for diamonds. But sources from market participants say that because of problems in the Asian financial market and delays in payments by Chinese buyers that have recently been confronted, some Indian companies are wary of making deals on a long-term loan.

This month demand in the domestic market was also stable, taking into account the fact that the festive season has already begun. The demand for diamonds in the category of "stars" and "mele" was high, as sales of inexpensive diamond jewelry constantly increased in all small and large cities throughout India. The demand for diamonds of fantasy shapes of all sizes and all quality categories is growing, which indicates a change in the preferences of the Indian consumer. Diamonds the size of one carat and above, too, were in demand because of the approach of the wedding season. In general, the Indian market has good expectations. The mood in the domestic jewelry sector is also upbeat, and retailers expect a sharp jump in sales volumes during the upcoming Diwali holiday.

It is expected that the upcoming wedding and festive season will bring good prospects for the Indian domestic jewelry market. In addition, India is experiencing a natural attachment to gold, and its role in the family economy can not be underestimated.

Stabilization of gold prices at lower levels both in the domestic and international markets caused the growth of seasonal and holiday demand in India almost a month earlier. Many retailers have already reported an increase in sales by 25-30 percent over the past five days, judging from reports in the media. Consumers of jewelry, in fact, have a double benefit, since jewelers, assuming that the season will be lean, announced big discounts. As reported, consumers enjoy both advantages - both a reduction in prices and discounts.

The Indian diamond industry, which was on the brink of recovery and returning to the path of rapid development, unfortunately stopped, albeit temporarily, in its growth because of rallies and unrest in Surat in August. Due to a wave of unrest organized by members of the Patyrar community in Surat in August, a diamond business that suffered heavy losses suffered badly.

The decline in the country's trade in diamonds continues, as can be seen from the recently published preliminary data for July 2015, released by the Council for the Promotion of the Export of Precious Stones and Jewelry in India. The volume of polished exports in July 2015 decreased by 18.3 percent to $ 1,512.74 million compared to $ 1852.48 million in July 2014. The volume of imports of diamonds was $ 1,092.6 million in July 2015, compared with $ 1,912.46 million in July 2014, down 43 percent. The volume of diamond exports decreased to $ 59.2 million in July 2015 compared to $ 140.38 million in July 2014, which is 57.8 percent lower. The volume of polished exports was $ 266.9 million in July 2015 compared to $ 634 million in July 2014, which shows a decrease of 58 percent.

In an attempt to use the obtained raw materials (diamonds) for the benefit of local citizens, the government of the Indian state of Madhya Pradesh is reported to have decided to implement the Diamond Park project in the form of public-private partnership (PPP) in its trading capital Indore. The diamond park will be located in the village of Rangvaza, where an area of 134.2 acres will be created by the Special Economic Zone (SEZ), and local diamond manufacturing enterprises will be established on the remaining area of 120.3 acres.

The smuggling of gold into India in a few years has been greatly reduced. Recently, the decline in the premium for gold on the back of falling demand led to a decrease in contraband this year. According to industry estimates, demand this year will fall by about 150 tons compared to 120 tons last year. PR Somasundaram, managing director of the World Gold Council-India, said that illegal imports fell sharply this year.

On August 18, the Government of India raised import tariffs for gold to US $ 363 for 10 grams, and for silver to US $ 499 per kilogram, following insistent signals from the world market. For the first two weeks of this month, the cost of the tariff for imports of gold and silver was US $ 354 for 10 grams and US $ 498 per kilogram, respectively. The government has raised the tariff for imported gold and silver quite insignificant, taking into account the growth of world prices.

Following the release of the ISO (International Organization for Standardization) standard 18323: Jewelery - Consumer confidence in the diamond industry, the Council for the Promotion of the Export of Precious Stones and Jewelery of India, together with the Indian Diamond Exchange (Bharat Diamond Bourse , BDB) and the Federation of Gems and Jewelry (Gem and Jewelery Federation, GJF) thanked this organization. The ISO standard provides a number of definitions aimed at making greater clarity for traders and maintaining consumer confidence in the diamond and diamond industry as a whole.

When the World Gold Council (WGC) released the results of the study "Developing Indian Hallmarking - A Roadmap for Future Growth", gold jewelery assay centers in India questioned the authenticity of World Data Gold board on jewelry with samples in India.

First - good news. At an event organized recently by the Associated Chambers of Commerce of India (Assocham) in New Delhi, France Morule (France Morule), the High Commissioner of South Africa in India invited Indian companies to invest in South Africa and establish manufacturing enterprises Jewelry in the country. In addition, it was reported that the 3rd Indian Diamond Week, organized by the Council for the Promotion of the Export of Gemstones and Jewelry, in cooperation with the Diamond Dealer Club, New York, and the 24- August 27, 2015, was met well and became successful, more details about this will be told later.

to promote the export of gems and jewelry Council proposed that India has specific tariff codes and fees for natural and synthetic diamonds. GJEPC has already submitted a proposal to the Ministry of Commerce of India, and the industry is hoping that in the near future the government will take action on this matter.

Brihan Mumbai Nagarpalika (Municipal Corporation of Greater Mumbai) reported to the Council on the promotion of exports of gems and jewelry by letter dated 3 August 2015, which will be adopted by the bank guarantee contract on the basis of an internal duty on imported gold for jewelry production for export purposes within Greater Mumbai, reportedly on gjepc.org.

Gemological Science International (GSI), one of the leading gemological laboratories in the world, claims in its statement that it is the first and only laboratory in India that has started checking the parties of diamonds in the size of an asterisk and a mele using the latest equipment.

But this month there were several unpleasant events. Remedial measures need to be taken, and in order to protect the diamond industry, the Surat Diamond Association (SDA) has recently terminated the membership of a diamond manufacturer who is accused of selling unannounced synthetic diamonds to diamond merchants. Secondly, at Cristy Gems, a Surat-based diamond manufacturing company, the Gemological Institute of America (GIA), a recently banned falsified labeling of the report number. The laboratory also announced that it will no longer accept from this company diamonds for certification.

http://rough-polished.com/ru/expertise/98741.html

Despite the decline in diamond production in the country

Large families have always been present in the diamond and diamond industry, and for centuries in most cases these were Hasidic families. They were the main pillar of the diamond and diamond industry in Amsterdam, and then Antwerp. At the beginning of the 20th century, some of the jewish traders in diamonds and diamonds and cutters in Europe emigrated and created diamond and diamond industries in new places.

One of these places was Israel, where a new nation was being formed. The need for talent, entrepreneurial spirit and qualifications was the source of the vital force of a developing economy that is striving to enter the world arena.

Arrival of diamonds in Tel Aviv

Diamond traders in Amsterdam and Antwerp began to leave for Tel Aviv in the 1930s, as anti-Semitism spread throughout Europe. They created small, unofficial diamond trade zones in Tel Aviv, where they ran from small offices and cafes in the area of this city called Akhuzat Bayt.

By 1937, after the British Mandate authorities abolished the tax on the import of diamonds, the industry began to gain momentum. Local traders have united to create the first diamond exchange of Israel, the Palestinian Diamond Club (Palestine Diamond Club). The first production of diamonds began in the country that year with small stones in Petah Tikva. Very quickly, two more diamond production centers began to develop in the coastal city of Netanya and in Tel Aviv.

But only after the outbreak of World War II, the local industry was able to significant growth. They began to fill the void left by the diamond and diamond industry in Europe, which fell victim to this war. In the late 1940s, diamond traders and cutters who survived the war immigrated to Israel, giving the country an additional impetus with an influx of skilled workers and experienced traders.

The birth of the diamond exchange

Gradually, they were able to receive more diamonds, prove their capabilities and, finally, convince De Beers to supply diamonds to them on a regular basis. In the mid-1960s, after many negotiations and unsuccessful attempts to build a diamond exchange building in Tel Aviv, the Mayor of Ramat Gan allocated a large site for the building of the first diamond exchange, Shimshon.

It was a revolutionary approach. The decision to combine all that is needed in one building, led in a few years to the establishment of the Israeli Diamond Exchange (Israeli Diamond Exchange). One building has become a complex of interconnected buildings offering everything from offices that supply diamonds, banks and freighters to restaurants, a synagogue and even a hairdresser, all of which serve over 1,000 offices dealing with diamonds and diamonds in a closed and secure environment. Since it was a rapidly growing diamond center, production facilities quickly appeared around it, and this place turned into a thriving diamond and diamond trading center and a diamond manufacturing hub.

By the 1970s, having a large and modern diamond exchange, possessing a deep knowledge in the field of cutting large and special diamonds, and also ordinary stones, having experience with precious stones of fantasy forms, Israel acquired a key role in the global trade in diamonds. Soon he replaced Belgium as the world's largest exporter of diamonds.

Israel is gaining experience

Israel has built a reputation for itself through high-quality cutting of stones and great specialization in different places. For example, in Netanya, diamond manufacturers have gained extensive experience in working with diamonds of fantasy shapes. Local diamond producers have become known for their high quality work and the ability to maximize the use of diamond to increase the yield of finished products.

The second most popular cut "princess" was developed in 1979 in Israel as a result of the improvement of several other square shapes of the diamond. Very quickly, this form of cutting became extremely popular in the world - and with good reason.

The three princess cutters, Yigal Perlman, Betzalel Ambar and Israel Itzkowitz, sought to create a diamond that was both beautiful and economical. As a result, a brilliant diamond with a high gloss and a high yield was obtained. The combination of these two characteristics has made this form very popular, especially in the United States.

Innovative spirit

One of the secrets of the success of the Israeli diamond center is a large investment in research and development. Given the name "Startup Nation" (Startup Nation), the Israeli high-tech industry and its numerous engineers have developed new technologies that have improved the production of diamonds. With the help of these funds, the Israeli industry was able to increase efficiency and reduce costs for the production of diamonds.

Among these means - robotics, means of identification and planning of diamonds, as well as technical means of detection. In a few years, these technologies have become popular items of Israeli exports to other diamond centers.

One of the greatest opportunities for Israel is the production of large, expensive diamonds. Such products, requiring very careful planning and exceptionally high craftsmanship, are sent to Israel from around the world for cutting and polishing by local cutting craftsmen.

Many of the largest companies started small. Cutters and polishers who started production on their own could, with some entrepreneurial spirit, organize work at a higher level and gradually accumulate enough capital to independently purchase diamonds, eventually becoming a manufacturer of diamonds.

Israel's current branch

In the past few years, it has become more difficult for small cutters and polishers to make such transformations because of rising costs of producing diamonds and lowering margins. At present, there are no production facilities in Petach Tikva and Netanya. Many of the lapidary enterprises in this place near the stock exchange have also closed, since the production of diamonds has moved to countries with lower labor costs, for example, to India and China.

Despite the decline in diamond production in the country, Israeli diamond and diamond companies are among the largest in the world. Now large global players - Israelis own cutting enterprises in countries such as Botswana, Thailand, etc.

The Israeli industry has attempted to maintain its global position in the last few years. This includes increasing bank financing and continuing to strengthen the base of scientific and technological development. A faceting and polishing factory was recently opened with the goal of preserving know-how and reducing costs, which would allow Israeli companies to cut and polish their stones at this factory at a lower cost.

http://www.ehudlaniado.com/home/index.php/news/entry/how-israel-became-the-world-s-largest-polished-exporter

We used to have tourists from China and India, but their number fell sharply

The diamond sector of South Africa is shrinking to dangerous levels, and the government is doing nothing to revitalize it.

Zlotowski's Diamond Cutting Works, South Africa's largest cutting and polishing company, recently announced that it intends to close its businesses.

The company worked mainly in Johannesburg, and other branches worked in Newcastle in the province of KwaZulu-Natal, and it is a subsidiary of the Hong Kong firm Chow Tai Fook, considered the world's giant among registered jewelry companies.

James Lorimer, the minister of the "shadow cabinet" of the Democratic Alliance (DA) for mineral resources, representing his party in the parliamentary Committee for the Supervision of the Mining Industry, called the closure of Zlotowski a "catastrophe."

"Earlier, the number of cutters in the country was about 4,500, but with the closure of Zlotowski there will be only 200," he said, adding that strict legislative requirements and working conditions make the survival of diamond industry participants extremely difficult.
 
Bureaucracy and the government's lack of understanding and desire to work with the industry are absolutely horrifying, "Lorimer said.

The most interesting is that there is not a single representative of the cutting and polishing companies in the South African Diamond & Precious Metals Regulator. "

According to Lorimer, the diamond law, which states that South African diamond mines should provide 10% of their production to local beneficiary companies, "almost completely destroyed" the beneficiation of diamonds.

Ernie Blom, president of the World Federation of Diamond Bourses and chairman of the Diamond Dealers Club of South Africa, told Miningmx that there are several factors that led to a reduction in the diamond industry in South Africa.

"There is no longer a permanent supply of diamonds, as De Beers sold most of its South African businesses," he said. "Instead, diamonds are sold on tenders, and companies like Zlotowski do not have reliable supplies."

Blom also spoke about the high cost per carat in South Africa in comparison with countries such as India and China, as a factor in restraining growth. "We are losing market share because of the high cost of cutting because of the high cost of labor and low productivity."

Blom said that high export costs are also a heavy burden for the industry. "Our cutters want to export to the rest of Africa, but the costs are so high and so restrained that countries such as Botswana, Namibia and Zambia who want to buy them from us are forced to turn to other countries."

Consequently, the government's policy of beneficiation hinders the ability of major South African players to trade, but Blom believes that the diamond tourism industry has faced stricter visa conditions.

"We used to have tourists from China and India, but their number fell sharply.

This will lead to the further closure of diamond cutting companies, which, in particular, dealt with the sale to tourists. I wrote to the minister, but nothing has been done so far. "

Susan Shabangu, the former minister for the mining industry, said in her previous budget statement that the Department for Natural Resources was aware that the legislation was holding back the industry and said that its department was going to address the issue of improving legislation.
http://www.miningmx.com/page/news/diamonds/1654691-SA-diamond-sector-dying-on-the-vine#.Vhfme3rtlHw

Companies dominating the natural diamond market

A 2.62-carat diamond, which Calvin Mills bought in November for his bride-an amazing specimen. The gemstone of the cut "pear" and canary yellow color costs $ 22,000. A profitable purchase. Mills, chief executive officer of CMC Technology Consulting in Baton Rouge, Louisiana, says he could spend tens of thousands more on a comparable diamond cut from the bowels, but his stone is from the lab. "I got a bigger stone for a smaller amount," says a former footballer at the Southern University, who made a proposal to the girl last year during a half-time break during one of his alma mater matches at the Super Bowl in New Orleans.

Although synthetic diamonds make up only a small fraction of the $ 80 million global diamond market, demand is growing, as buyers are looking for cheaper gems and not burdened by ethical issues. Groups for the protection of human rights with the help of Hollywood popularized the term "blood diamonds" in order to draw attention to the role played by diamond mining companies in fomenting the conflict in Africa.

Unlike fake diamonds, for example, cubic zirconia, stones that are "grown" (the term preferred by the nascent industry) in laboratories have the same physical characteristics and chemical composition as real diamonds. They are made of a carbon seed placed in a microwave chamber that uses methane or another carbon-containing gas and undergone overheating to convert into a red-hot plasma ball. At the same time, particles are formed that crystallize into diamonds, and this process can take 10 weeks. The technology has already been improved to such an extent that experts will need equipment in order to distinguish the synthesized gemstones from those that are mined in mines or from rivers.
 
Retailers, including Wal-Mart Stores and Helzberg Diamonds, Owned by Warren Buffett (Warren Buffett), begin to create stocks of synthetic diamonds. "For a modern young consumer, does he get a diamond extracted from the earth or produced on the ground - are they all the same?" - asks Chaim Even-Zohar, the head of Tasu, an industry consultancy firm in Ramat Gan, Israel . In the report of the consulting firm Gemdax, based in Antwerp, just 45 percent of North American consumers between the ages of 18 and 35 said they prefer natural diamonds. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers. Begin to create stocks of synthetic diamonds. "For a modern young consumer, does he get a diamond extracted from the earth or produced on the ground - are they all the same?" - asks Chaim Even-Zohar, the head of Tasu, an industry consultancy firm in Ramat Gan, Israel . In the report of the consulting firm Gemdax, based in Antwerp, just 45 percent of North American consumers between the ages of 18 and 35 said they prefer natural diamonds. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers. Begin to create stocks of synthetic diamonds. "For a modern young consumer, does he get a diamond extracted from the earth or produced on the ground - are they all the same?" - asks Chaim Even-Zohar, the head of Tasu, an industry consultancy firm in Ramat Gan, Israel . In the report of the consulting firm Gemdax, based in Antwerp, just 45 percent of North American consumers between the ages of 18 and 35 said they prefer natural diamonds. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers. Whether he receives a diamond extracted from the earth or produced on the ground - are they all the same? "- asks Chaim Even-Zohar, the head of Tasu, an industry consulting firm in Ramat Gan, Israel. In the report of the consulting firm Gemdax, based in Antwerp, just 45 percent of North American consumers between the ages of 18 and 35 said they prefer natural diamonds. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers. Whether he receives a diamond extracted from the earth or produced on the ground - are they all the same? "- asks Chaim Even-Zohar, the head of Tasu, an industry consulting firm in Ramat Gan, Israel. In the report of the consulting firm Gemdax, based in Antwerp, just 45 percent of North American consumers between the ages of 18 and 35 said they prefer natural diamonds. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers. Head of Tasu, an industry consulting firm in Ramat Gan, Israel. In the report of the consulting firm Gemdax, based in Antwerp, just 45 percent of North American consumers between the ages of 18 and 35 said they prefer natural diamonds. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers. Head of Tasu, an industry consulting firm in Ramat Gan, Israel. In the report of the consulting firm Gemdax, based in Antwerp, just 45 percent of North American consumers between the ages of 18 and 35 said they prefer natural diamonds. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers. "Some substitute for natural diamonds is inevitable," says Anish Aggarwal, a partner of the firm, who did not want to disclose who paid for the study. Gemdax says that additional research is needed to better assess the attitude of consumers.

Companies dominating the natural diamond market, including Russia's ALROSA and De Beers, a division of the Anglo American based in London, do not see a big threat in the new companies that have emerged in the industry, because "this is just a small part" of the market, says Neil Koppel Koppel), Chief Executive Officer of Renaissance Diamonds. His company, located in Boca Raton, Fla., Delivers the goods to the shops of Helzberg in 10 US cities. Last year, only 360,000 carats of synthetic diamonds were produced, compared to 146 million carats of natural diamonds mined in 2013, according to research firm Frost & Sullivan. The offer of diamonds grown in the laboratory is likely to increase to 2 million carats in 2018 and up to 20 million carats by 2026.

De Beers says that its research shows that consumers do not equate synthetic diamonds with those extracted from the bowels of the earth, adding that artificial stones, rather, will compete with costume jewelry. "The value of a diamond is inextricably linked with the inspiring and unique history that lies behind every stone, from the time of its formation to its history, to its emotional significance, which the diamonds grown in the laboratory simply do not have," the company said in a statement. In July, diamond mining companies scored a major victory in marketing when the International Organization for Standardization decided that gemstones manufactured by man should be called synthetic, grown in the laboratory or created in the laboratory, and not real, cultivated or artificially grown.

Produced stones account for about 5 percent of the stones sold at the Gem Lab jewelry store in Rochester, New York. A synthetic diamond weighing 1 carat there cost about $ 6,000 compared to $ 10,000 for a natural diamond of the same weight, as Vice President Paul Cassarino said. The Singapore-based company IIA Technologies, the largest manufacturer of lab-grown diamonds, is requesting $ 23,000 for a 3.04-carat diamond synthesized by her, a natural diamond of similar size and quality would cost about $ 40,000. "We are creating a new industry," says Vishal Mehta ), Chief Executive Officer of IIA, who does not disclose how much it costs to manufacture a diamond in the laboratory. "Consumers are now really concerned about the idea of environmental safety and conflict-free nature of diamonds. This is a nuisance. "

http://rough-polished.com/ru/expertise/99303.html

Manufacture of precious jewelry

Here, summer holidays are over, and again autumn is a season that does not seem to be active. Last time I wrote about the problems of retailers, although it was possible to say more on this issue. Now let's think about consumers. Where are they located? Who are they? And will they show themselves this year?

There are many confirmations that the people we are so used to in the era of consumerism have turned or are turning into other people who have other values, and they look with an unbiased look at how money is earned and how to spend it.

Maybe it's best to start describing this transformation in the mindset of people, simply listing what we are seeing.

The principle of "being no worse than people" is a thing of the past. There is no longer any way to make purchases for the sake of shopping itself and to demonstrate what a person has, although personal satisfaction remains. Therefore, this means that what you own means less than what you have already done and where you visited (I exclude the super-rich who are still buying yachts the size of 100 feet).

In turn, for many wealthy families, this means that the craving to experience everything from personal experience is preserved, and how. Cruise ships are getting bigger (uf!). People continue to raft all around the Amazon, conquer the heights of Kilimanjaro and hiking around the Appalachian trail.

The free style of clothes is now universal. Gourmet restaurants are currently experiencing difficulties in order to encourage men to come in jackets, not to mention neckties. Strict suits are now worn for weddings and premieres at the Metropolitan Opera. And for weddings, I would add, on which diamonds still play a big role.

The everyday form of clothing requires inexpensive and essentially one-time or at least transformable jewelry. Rings and earrings can hang on the neck chain. And necklaces can be worn as bracelets. A woman can use them when she is in the day on heels, in leotards and in a T-shirt. The recent growth in the business of costume jewelery and the reduction in costs for the average purchase of jewelry confirms this.

This, naturally, causes lower average prices for retailers. Even with higher profits from inexpensive products, it is ever more difficult to work without breakthrough than ever before.

Only about 60% of working-age Americans currently have a job, and many of them either work part-time or many people have an hourly rate that is much lower than before. In addition, average salaries have actually declined in the past five years, if adjusted for inflation, after it has been unchanged for almost 30 years. And, of course, among the working people many had to switch to less paid jobs.

For decades, there has been a steady decline in the middle class (due to which, in fact, there is actually a jewelry industry). People either have succeeded, or their standard of living has significantly decreased, which is happening more often. These people are not buyers who freely spend money to buy luxury goods. The minimum salary of $ 15 per hour is a good idea and long overdue, but such a salary means that people can survive, but not squander.

This change is not necessarily the result of greed or incredibly high management salaries, despite the fact that it has become a political issue. This is the result of the rapid development of technology, which is why the workplaces are constantly shrinking and the need for people is reduced. Companies are constantly looking for ways to reduce "numbers". Robotics is what will give the United States the ability to remain a society with high-tech production and low labor demand - high-tech start-ups hire a handful of people compared to factories that have assembly lines. It should be expected that this problem will only increase.

As for those people who have a job, many of them got a bitter lesson, going through the Great Depression, which still carries a threat from everywhere. They saw, how families collapsed because of job loss, or they themselves experienced unemployment. The financial and legal industries are two examples where people received large salaries in the past, and then faced a sharp drop in employment. In both cases, technology and outsourcing played a role. What better evidence of a fundamental restructuring of labor and productivity than the Federal Reserve's unwillingness to raise interest rates, despite years of economic stimulus?

Anyway, those who still get good salaries now consider it top priority to have money in banks and avoid the appearance of debts. Next on the list are jewelry or a country house, where you can spend the weekend. An excellent study by MasterCard, which has an excellent opportunity to know how people spend money, has shown that the nature of current costs has radically changed, even if banks continue to believe that consumers are still buying the way they bought before.

As an example, this study showed that the number of credit cards that a consumer or family members carry with them has declined from the beginning of the recession from seven to four. These four usually include a permanent customer card (for example, from a department store), a discount card or a savings card and a card for cash transactions. Consumer indebtedness has declined significantly, as people cut their share of borrowed funds and now use cards to extend the payment period for short periods. MasterCard calls these customers "transaction participants" (Transactors), who more often manage their own cash flows than become long-term borrowers. There are much fewer long-term cards with a depleted loan at a high interest rate. It is in this way that banks actually made money in the past. Credit cards will undergo big changes, and there will be more competition.

People think first to save, and then spend. Therefore, if jewelry jewelry was sold for $ 5,000 a few years ago, now they are sold for $ 2,000. It would be unreasonable to think that these changes in the mindset of consumers will be reversed and everything will return to what once was.

The people of the generation of the two thousandth (and the now emerging Z generation!) Are the buyers of the future, and they already have a huge impact on our economy. But they bear the burden, which practically was not in the years of the post-war generation - the debt for education. Now it is over $ 1 trillion. The people of the two thousandth generation learn that you can constantly manage the payment of interest, but the payment of the principal amount is really a serious matter. And even if most of the debt is paid, everyone, including friends and family members, sees how the burden of debt is crushing.

Finally, we must add that the cost of materials necessary for the manufacture of precious jewelry makes many of them unattainable for most people, and hence the growth in the volume of costume or almost costume jewelry. This teaches people that alternatives are also good, that you can find great decorations at a low cost. This, in my opinion, in the coming years will lead to a greater shift towards materials made by man, as I already wrote about this at the beginning of the year.

When we consider all these factors (and others), we inevitably come to the conclusion that we are experiencing a social change that has begun to change the way the economy works. In the jewelry industry, we celebrated the rapid flowering of the era of consumption from about the early 60's to the mid-80s of the last century. There was a rapid growth of shopping centers and, accordingly, the supply grew. About twelve years ago, this expansion stopped and the reverse movement began, which continues to this day. The United States is a fully mature market, and as retail continues to change in response to the demographic changes just described, we will see the emergence of new winners at a time when many traditional retail formats will come to naught.

http://rough-polished.com/ru/expertise/99301.html