GIA to Offer Online Grading Check Service

Consumers to get information on any GIA Diamond Grading Report or Diamond Dossier

Post By : Diamond World News Service On 23 December 2005 12:00 AM
Diamond industry debt continues to mount, though it remains at “acceptable levels,” said G. Loet Kniphorst, Global Director of ABN AMRO’s diamond and jewellery division. Addressing the Diamond Conference in New York, he noted that this debt totaled $10.2 billion at the end of the first half of this year, nearly $1 billion higher than at the close of 2004. Although this is generally not a cause for concern, he warned that there are “some risks” ahead, according to a GIA report.
One potential problem he cited is that prices for polished diamond have not followed the steep rises for rough. “Over-capacity in manufacturing, particularly in India, is fueling much of the rough increases, because manufacturers are competing to keep their factories open,” he said. “At the same time, retailers are resisting price increases and demanding longer (payment) terms and more memo programmes.” Overall, he noted, the US market has grown sluggish and “saturated with lower- and medium-quality goods.” High-quality goods are still in demand, “but often priced too high to sell”.
Meanwhile, Sierra Leone is trying to regain control of its diamond resources after its devastating civil war, said Mohammed Dhaffie Benya, chairman of the Council of Paramount Chiefs for the country’s eastern district. He represents the area in which 90% of the country’s diamonds are mined. Also addressing the Rapaport Diamond Conference, Benya noted that a coalition of artisanal miners and organizations has created the Peace Alliance for Diamonds to organize the diamond diggings. This has cut back on illicit diamond extraction and trading. Now, he said, the country is looking for foreign investors to help continue the rebuilding process.
“There is still a problem with unlicensed mining. So much has been done, but there is still much to do.” Rajiv Mehta, CEO of Dimexon, a Mumbai diamond manufacturer, added that the consumer markets in India and China are growing rapidly, causing a shift in goods away from the US and Japan, the two largest diamond-consuming nations.

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