Yoram Dvash is President of the World Federation of Diamond Bourses (WFDB) having been elected in 2020. Previously, he served as Vice President of the international body that represents 30 diamond bourses globally.
One of his first initiatives at the WFDB was creating the GET-Diamonds digital trading platform.
Dvash was also previously the President of the Israel Diamond Exchange (IDE) for five years. He was elected to head the IDE, one of the most important members of the global diamond community, in 2015.
Dvash pushed for the establishment of the IDE’s Centre for Manufacturing and Innovation – set up to ensure that diamond cutting and manufacturing would continue to take place in Israel.
He was also behind the “10+ -carat development section” in the technological service area in the IDE’s trading hall, a move aimed at ensuring that large diamonds would be manufactured in Israel and not overseas.
He launched his own diamond manufacturing and trading business, Dvash Diamonds Ltd., in 1991. The firm manufactures its diamonds in Israel, and markets production overseas via satellite offices in the major diamond markets.
Yoram Dvash found time in his busy schedule to speak to Rough&Polished about the state of the diamond industry around the world and some of the major issues currently facing it.
How would you characterize the state of the diamond market globally currently?
Well, there there's no doubt that overall the global market is down. I would say that this is the first time that we have seen this across the board. That's to say, in the rough and polished markets as well as, for example, stores in China.
We are obviously in a different global situation after the highs we experienced in 2021 and 2022 after the Covid pandemic.
There are several issues that table come together at the same time, for example the situation with De Beers and its future, the proposed sanctions on Russian diamonds by the G7, and all kinds of causes that have brought about weakness. But the market in the United States remains solid. I would say the main problem is in the east with a relatively weak position in Hong Kong and China.
As a result of that, many more goods are being sent to the United States in the hope that they will find buyers. Because of the increased number of polished diamonds being sent to the US, this makes the situation more difficult in that market.
American buyers are being more prudent, but I must emphasize that the US market remains very solid.
I am confident about the future. This situation will not last forever and we hope to see an upturn as we enter the important holiday season. We need a change in outlook for the market to return.
What is the state of the Israeli diamond trade?
As with our colleagues across the world, the situation is not so easy for Israeli diamantaires.
In addition, of course, we have also faced problems because of the war that started on October 7th when Israel was attacked.
We face a constant problem of flights being cancelled and also that buyers are not visiting as they did in the past.
Are you pleased with De Beers cutting back production and tightening supply?
De Beers has reduced production sharply and lowered prices for some of their goods and this is a very good factor for the diamond industry.
At a time of lower demand around the world, it makes sense to reduce the amount of goods on the market.
De Beers is taking responsibility as such a large player. It is reducing prices and making significant changes that will influence the market going forward.
We have to remember that with such a big market, it takes time for changes to come through and to be felt.
What were your impressions from your visit to the JCK Show Las Vegas?
I visited the United States for a month, which included meetings and discussions with colleagues in New York and Los Angeles. I took part in the JCK Show in Las Vegas along with many of the WFDB bourse presidents.
Following the show, I was encouraged about the future of the diamond industry.
The diamond industry in the US, and elsewhere, is concerned about issues such as the natural diamond market vs lab growns, the impact of the possible sale of De Beers, and the implementation of the G7 sanctions on Russian diamonds.
On the positive side, however, the JCK Show was extremely lively and well attended. While some veteran exhibitors were absent, there were many new ones, which points to a natural turnover.
The atmosphere among diamond exhibitors was positive. Transactions took place and sales were made.
I was also impressed with the work of the Natural Diamond Council, which presented its plans to launch marketing campaigns of its own with retail partners.
Another positive development is that De Beers is launching campaigns in partnership with large retail chains, such as Signet in the US and Chow Tai Fook in Asia, to promote natural diamonds, and it will offer support in training staff in how to sell natural diamonds.
What will happen with the G7 sanctions in your opinion?
It is encouraging that any decision has been pushed back by six months. The Americans have been moving in the direction of the diamond industry. There is flexibility by the United States administration regarding sanctions on Russia and this is helping the diamond industry in its work.
How do you see LGDs now? Is the public waking up to the fact that their value constantly declines and that they have few upgrade possibilities?
I believe that LGD producers are reducing production because of the fall in prices.
After the big rise in production and sales of synthetics, I believe people are coming to the realization that there is a big difference between LGDs and natural diamonds.
I believe the hype surrounding LGDs is beginning to fall. It’s nice to buy cheap jewelry, but not to buy stuff that is worthless.
I believe that we will see further falls in the supply and production of LGDs.
What are the main issues facing the WFDB?
We have been dealing with the issue of sanctions on Russian diamonds for more than a year. We have been working with the World Diamond Council and the WFDB presidents in the G7 countries as well as the GJEPC to present a unified message to governments. We understand the issue of sanctions on Russian diamonds but not to hit all diamonds.
At the WFDB, we have also been working with our colleagues in the Shanghai diamond exchange which is working on a campaign to promote natural diamonds.
How has the WFDB changed in recent years, and how is it dealing with the issues facing the global trade?
We are working on an initiative to ease and shorten the process for diamantaires regarding international arbitration. We are working on revising the rules to make it easier, shorter and more user friendly for members of the diamond business across the world.
Abraham Dayan for Rough&Polished
