The traditional diamond centers of the world are well known to most folks in the US. Few people think of Antwerp without thinking about diamonds. Likewise for cites like Johannesburg and even New York City. However, some new names are rising in the industry and they stand poised to steal the much of the market away from the erstwhile leaders in the industry.So, who are these new players? Well, one of them is not really a new player, at all. India was the cradle of diamond shaping long before Europeans knew that diamonds were anything more than a hard stone with very little luster. Today, India’s star is again on the rise and the nation is making waves in more areas than just diamonds. Gold and other precious metals, precious stone cutting and shaping and high-end jewelry making are all moving to the subcontinent of India.
Another area that is reshaping its image in the diamond industry is the Middle East, specifically Dubai. This tiny nation, famed for their extravagant manmade islands, wealth and resorts is setting itself up as one of the prominent diamond centers in the world. Rough stones are traded on Dubai’s markets, cutting and shaping is a staple of their industry and the world is taking notice. More and more traders are coming to Dubai to buy and sell, bypassing Belgium and South Africa in the process.
Even Russia is getting in on the act, with a diamond bourse located in Moscow. While the group has only been in operation for a short time, their membership has nearly doubled in only a year. Other rising markets are Taiwan and Vietnam, both acting as gateways to the Far East markets such as Korea, China and other nations in the area.
What does this shift in power portend for established markets like Israel, New York and Belgium? The immediate impact is likely to small, though the continual erosion of power will eventually affect these commercial hubs. While they will likely never fall out of style completely, the change in world markets will reduce their importance and prestige.
What is behind this shift in diamond centers from old to new? The most likely culprit is the economic status of traditional markets such as the US. With the downturn in economic status of these markets, new markets are being developed and these new centers are the gateways to those markets. New wealth in nations like China are making diamond traders take notice of these areas for the first time and they are beginning to realize the staggering amount of wealth to be had by marketing to these areas. For instance, the cell phone market in China doubles almost on a monthly basis; the Chinese market also has a voracious appetite for high-end luxury items such as diamonds.
Does this mean that Antwerp and Johannesburg will become backwaters in the international diamond world? While that is not likely, it cannot be completely discounted by even the staunchest supporters and most vehement proponents.
Other articles of interest:
