Headlines

Is This the Start of a Comeback for the Diamond Industry?

Published

9 years ago

February 12, 2016

INSTORE Staff

Smaller diamond producers have their doubts.

In the face of decreased worldwide demand for diamonds, Bloomberg explores the potential impact of recent big sales by the two world’s largest producers, De Beers and Alrosa PJSC, who consequently have the biggest influence over prices.

The article explains how both companies recently sold a combined $1 billion in diamonds, though the CEOs of two smaller diamond producers are expressing doubt that it portends good things to come. William Lamb, CEO of Lucara Diamond Corp., told Bloomberg that it will be “very difficult to maintain the current exuberance of the market.” In the same vein, Firestone Diamonds CEO Stuart Brown called January “a good start on that road to recovery” but cautioned: “Time will tell. You don’t get any prizes for being bullish in this industry.”

Earlier this year, De Beers slashed diamond prices in response to slowing demand in China, which led to a giant $540 million sale in January. Industry guru Martin Rapaport later advised De Beers to not overprice rough diamonds “that result in a sharp decline in diamond manufacturing, polished shortages and bullwhip effects that increase volatility and uncertainty.”

Four Decades of Excellence: How Wilkerson Transformed a Jeweler's Retirement into Celebration

After 45 years serving the Milwaukee community, Treiber & Straub Jewelers owner Michael Straub faced a significant life transition. At 75, the veteran jeweler made a personal decision many business owners understand: "I think it's time. I want to enjoy my wife with my grandchildren for the next 10, 15 years." Wilkerson's expertise transformed this major business transition into an extraordinary success. Their comprehensive approach to managing the going-out-of-business sale created unprecedented customer response—with lines forming outside the store and limits on how many shoppers could enter at once due to fire safety regulations. The results exceeded all expectations. "Wilkerson did a phenomenal job," Straub enthuses. "They were there for you through the whole thing, helped you with promoting it, helping you on day-to-day business. I can't speak enough for how well they did." The partnership didn't just facilitate a business closing; it created a celebratory finale to decades of service while allowing Straub to confidently step into his well-earned retirement.