For more than 50 years Rubel & Ménasché has been delivering high-quality diamonds in a range of small sizes to the jewelry houses on the Place Vendome in Paris. The company is specialized in selling top quality gems to high-end jewelry brands across the world. Our correspondent in Brussels asked its CEO, Stephan Wolzok to share his views of current events in the diamond market.
There is a constant gap between prices for rough and polished diamonds. Do you expect a rise in diamond prices on the background of a recent surge in commodity prices?
Currently the increase in polished is caused by demand and not by high rough pricing. In short term, we are very positive regarding the price of the high quality diamonds (VVS+), but we are more concerned about the "lower market," the VS/SI and PI1 market.
Do you have any concerns about the rough deficit?
Please clarify your question. If we understood it correctly, in the short term there is no rough deficit and in the long-term customers will have to work more directly with the "source," such as DTC Sightholders and Alrosa Core Clients.
Do we need price transparency in the diamond trade?
What we need in the trade today is consistency in grading to have the trust of consumers that they know what they are buying. We have today educated consumers who know exactly how much they want to spend.
What can you say about the expected sale of state-owned shares in ALROSA? Will the company be an attractive investment, or is it a "pig in a poke", especially in a situation of weak market and taking into account the time factor?
Amazing how Alrosa grew from a little company with little idea how to optimize relations and profitability, to the leading rough producer in the diamond world we know today. With committed long-term clients and spot clients, Alrosa doesn’t have any problem to sell their output even in slower times.
How do you assess the future of the world's largest diamond miners?
The recent announcement that Rio Tinto is not getting out of the diamond business is yet another confirmation that the big miners have full faith in the long-term prosperity of our industry. Furthermore, Harry Winston becoming Dominion Diamond Corp states the trust of the stakeholders in our mining industry.
What are, in your opinion, the most promising global markets for diamond dealers in the nearest future?
The most promising tool for a diamond dealer is to have a global network with a certain flexibility in order to survive in uncertain times relative to its location.
What’s the latest news from your company?
As you know, we started to communicate a year and a half ago: advertizing campaign, website gathering analysis from the best diamond journalists, publishing diamond books... Now is the era of social networks, and we did not want to miss it, so we opened ourselves to Facebook and Twitter! More important we renewed our support to DDI and our friend Dorothée Gizenga for their amazing work and involvement to the cause. And we also committed to the DEF, as we also believe that beneficiation comes first by education.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
