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.
Chaim Pluczenick, Chairman and CEO, Pluczenik Diamond Company:
When could we expect the recovery in the diamond industry?
We are probably not out of the tunnel yet but we are already quite far in the tunnel and we can see some light shining.
Our industry will probably recover faster than any other industry because at the last year Antwerp Diamond Symposium we had a very good understanding with all the producers including ALROSA, De Beers and others to cut down their supply and with the bankers which understood that it was very important to keep up financing the industry.
It does not mean we have yet reached the end of the crisis but we are probably already almost out of it.
But we must be very sensible and not make any mistakes at the moment.
What is the reason behind a higher demand for rough diamonds?
There is a certain scarcity of rough, may be due to some overspeculation which is dangerous and I would very much advise everybody to buy what they need for their manufacturing and not to speculate. This shortage of supply with De Beers selling small sights has caused a shortage in certain areas and we hope that by January-February things will stabilize.
Do the key suppliers, De Beers and ALROSA, behave properly on the market? How do you evaluate the current prices for rough diamonds - are they fair?
I think at the moment we are at the very fair level. The two main suppliers-producers, ALROSA and De Beers, are behaving I would say very sensibly by supplying according to the needs of the market and not according to the speculation of the market.
What is your prognosis for the year 2010?
We will probably see a more stabilized market but nevertheless we will have to face some more V effects.
What is the main difference in the situation on the market in 2008 and 2009?
In 2008 we entered the financial crisis and in 2009 we are trying to get out of it.
How do you evaluate the concurrence of action on the market?
The only way to continue the diamond business is by steady, regular and committed supply.
What could you say about the efficiency of the sightholders system in the times of crisis?
That is only possible by a monthly sightholder system.
Alex Shishlo, Editor of the Rough&Polished European Bureau in Brussels
