Overseas Diamonds NV has been operating on the diamond market for almost 25 years ranking among major customers of such diamond-mining companies as De Beers, B.H.P., Rio Tinto and ALROSA. We are pleased to offer our readers the answers given by Davy Lapa, President of Overseas Diamonds NV, to the questions put by Rough&Polished.
How do you evaluate the ability of the diamond industry to find a way out of the crisis?
Consumers' demand for diamond jewellery will be the determining factor.
What is to be done to make diamonds an investment instrument?
No, I am not sure it is a good idea for diamonds to become an investment instrument. To the benefit of our industry it is important that the value in a diamond remains an emotional one.
What is in your opinion the best safe-haven asset under crisis conditions?
Financial experts tell us that in a financial worldwide crisis commodities are a safe haven. It is striking to note though that in this present crisis commodities do not benefit from an increased interest.
Do you consider the sightholder system established by De Beers fair? Will it stay after the crisis?
It may not be certain that the sightholder system will still be around once this present crisis is over.
What is your attitude towards ALROSA’s decision to enter into bilateral cooperation agreements with some Antwerp-based diamond companies?
I wish I would have been one of them.
What are the primary targets for your company?
To provide our customers with the best possible product based on beauty/performance of a diamond.
Sergey Vybornov, ALROSA’s president, said that in the current situation “flooding” the market with rough diamonds would be very dangerous. Do you think it will be possible to control legal rough supplies and suppress clandestine deliveries to the market?
I am not sure there are clandestine deliveries onto the market.
Your company declares its adherence to sustainable economic development including social factors. Could you explain how this kind of development is viewed by your company?
To provide social excellence in all factories.
You are catering major wholesalers and retailers worldwide. Anyone from Russia?
No, for the moment we don't have anyone in Russia.
In what way are you interested in the Russian market?
Yes, certainly, as Russia is a growing consumer market for our product.
What do you think may be your best offering to the Russian market?
Our "make" emphasizing the scintillation, brilliancy and symmetry of a diamond.
There is much talk on establishing an investment diamond market, the main stumbling block in this matter being the non-uniformity of polished diamonds. The first step to overcome it is to introduce some kind of global certification of diamonds. Do you think it will work?
No, I don't think so and by the way there is already a global certification of diamonds known.
Alex Shishlo, Rough&Polished European Bureau Editor in Brussels
