In an attempt to get a broader picture of the current diamond market before 2010 Rough&Polished turned to experts asking them to give their opinions about the latest developments in the industry.
Freddy J. Hanard, CEO of AWDC:
What is the reason behind a higher demand for rough diamonds? Do you consider this trend to be long-term?
There is an undoubted demand for diamonds. There is a higher demand for the moment than there was over the last couple of months. A restricted supply was extremely good for the market and it was decided during the first Antwerp diamond symposium last year when all the stakeholders took a decision that in fact it was better to lift all goods, and what the mining companies achieved together with the banks and the diamantaires is that the value of diamonds or the significance of diamonds was kept at a high level just as before. Not the value in terms of money but in terms of feelings, of sentiments, what an investor sees, and what a person sees in a diamond.
Will it be correct to say that the crisis in the diamond industry is over?
We do not say that there is a crisis in the diamond industry. There is a crisis worldwide. In the 1980s there was a crisis in the diamond industry specifically. Today it is not the crisis in the diamond industry - there is a crisis worldwide. We resist much better in the diamond industry due to the fact that we are a small industry with responsible stakeholders. In fact our industry resists much better than other industries.
Do the key diamond suppliers, ALROSA and De Beers, behave properly on the market? How do you evaluate the current prices for rough diamonds – are they fair?
ALROSA and De Beers behaved in an extremely professional way and this is highly appreciated by the market and by Antwerp even if no goods were sold during six months. In Antwerp we are very happy with the privileged relationship we have with ALROSA. And goods are sold today also in a very professional way. Mr. Oulin of ALROSA said that though of course they had sold a lot of their stock to Gohran they will not put their excessive stock on the market or they will do it in a very professional way.
ALROSA has virtually regained its pre-crisis performance. Could you give your comments to this?
I believe that ALROSA will in the coming five years become one of the major players in the world and this involves a lot of responsibilities. It is no longer a producer of diamonds but it will be a leader in diamonds. I am really convinced of that and I said that not so long ago at the farewell party of the Russian ambassador, Mr. Loukov - I believe strongly that ALROSA and Russia will become a major player in diamonds and that they have all the responsibilities and I am convinced with the vision they have and they showed over the last twelve months that they will be successful.
Alex Shishlo, Editor of the Rough&Polished European Bureau in Brussels
