Contribution of Mark A. Boston, Chairman of the London-based firm of H. Goldie & Company Ltd., to the growth of Indian diamond industry has been immense and invaluable. He started visiting India since early 1960s when the Indian diamond industry was just trying to rise from a scratch. As a broker of the Central Selling Organization (now Diamond Trading Company) of the De Beers Group, he advised Indian diamond firms to become regular clients of CSO and set up manufacturing units. He also introduced quite a few aspiring Indian entrepreneurs to the CSO and played a significant role in enabling them to set up and expand manufacturing activities. Some of these diamantaires now rank among world leaders of this industry. Over more than four decades, he has been a friend, philosopher and guide for the Indian diamond industry. His views on diamond business are highly valued by the trade and industry worldwide. %% {{He responds to some important questions put to him by the Diamond World:}}%%Diamond World : How the diamond and jewellery business fared during the recent Christmas season in the USA. compared with the same a year ago ?%% Feel-good Missing :%% Mark Boston : Jewellery sales in the US have definitely been disappointing compared with the previous years, but I think we have all recognized that is not too surprising given that we are in the midst of one of the worst recessions in living memory. Diamond jewellery and diamond business will never go out of fashion, but unfortunately the feel-good factor that drives sales has been missing this year.%% Diamond World : What were the main factors that influenced this business during the out-going season ?%% Mark Boston : If you look at quality fashion-magazines, the jewellery ads and the jewellery in their pages have never looked more enticing or exquisite, but of course, even the wealthy are feeling less wealthy and in the mood to buy. It is said jewellery is ingrained in the culture of both East and West and as long as men want to please their women-folk and adorn them, diamonds will be the ultimate gem and token of love. The DTC came up with an excellent campaign which they promoted strongly in the US, based on fewer and better quality purchases and there is no doubt that it was brilliantly conceived but not enough to hold the downward trend.%% Diamond World : How were rough prices affected during the outgoing year ?%% Good Time to Buy !%% Mark Boston : Prices of rough are bound to be adjusted to be in line with polished prices and reduced polished demand. It is being said that diamond prices are holding up relatively well in relation to other sectors and frankly, if you have the money like with everything else, this is actually a very good time to buy!%% Diamond World : How were manufacturers’ margins affected ?%% Mark Boston : Manufacturers have had a tough time for many years in terms of profitability and speculative fluctuations in the market in both rough and polished but it is the manufacturers who will lead the industry out of this recession. And I think the producers are at least going to have to treat manufacturers with the respect they deserve, instead of taking them for granted as they normally do.%%

Diamond World : Prices of larger gemstones seemed quite volatile during the year. What were the main influences on them ?%% Mark Boston : There was a lot of speculation in larger gemstones in the beginning of the year, right through until the jewellery show in Hong Kong. Prices have now been adjusted to a more realistic level. That is why I would say it is a buyer’s market in polished and there are some real bargains to be had in terms of large, high-quality diamonds.%% Diamond World : Did changes in asking- prices polished by Rappaport have any impact on the market ?%% Mark Boston : Rappaport has attracted a lot of attention and comment as well as blame. However, the market was due for major correction and it is too easy to just try to pin the blame on him. What I don’t understand is that he is being constantly criticized for the way he operates his list and at the same time people invite him to address them at conferences. They need to make up their mind whether they want to give him a platform or not.%% Diamond World : What can be the present debit level of the global diamond business ?%% Allround Caution Needed :%% Mark Boston : I am not an expert on global debit level, but I am quite sure it is a major concern to the banks, as it is to the clients in diamond business as it is in all sectors. Caution will be required by all this year, and hopefully things will improve gradually as and when confidence returns to the world economy.%% Diamond World : How do you view the growth prospects of Dubai as a diamond trade centre?%% Dubai Good for India :%% Mark Boston : Dubai has certainly emerged as an interesting centre and is actively promoting itself unlike Antwerp which always seems to have so many problems. It is being said, “Antwerp has a wealth of experience and concentration of diamond expertise that Dubai will take a long time to acquire. Dubai is, of course, very convenient for India and Indians.”%% Diamond World : What do you think about production of rough diamonds in 2009 ?%% Mark Boston : Rough production will definitely decline this year. The DTC is itself cutting back to concentrate on essential maintenance which had been rather ignored in good years. And to be honest, I think there will be substantially reduced demand, until rough/polished market and demand gets into equilibrium and sales are sustainable. %% Take Care of Workers :%% Diamond World : What do you think about the plight of diamond workers ?%% Mark Boston : I think the Chief Minister was quite right in admonishing diamond companies to take care of their workforce. While the ban on rough import had its impact on production, it seems to me that the workforce is entitled to maximum consideration in difficult times as they are the more vulnerable sector of society.%% Diamond World : How do you view the prospects of diamond business in 2009 ?%% Obama Lead Ray of Hope :%% Mark Boston : I think 2009 will be a difficult year, but one will hope for some gradual and steady improvements as the year progresses. I am hoping that the Obama administration will provide the lead that the last US administration singularly failed to achieve and that this will help the mood and sentiment not only in the US, but the global market which has suffered so much as a result of the problems that started in the US.%% Diamond World : What will be your advice to the diamond business now ?%% Don’t Devalue the Diamond Dream :%% Mark Boston : I think the diamond sector should believe in its product and project confidence to the consumer because if we treat diamonds as just commodity to be traded we devalue the equity of the diamond dream and legend and we sell ourselves short and disappoint our customers. Therefore we must retain confidence in ourselves and our industry to do the right thing and move ahead positively.%%