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Summary of a year in the diamond and jewelry industry Israel today

2023-01-01T12:33:51.778Z


Diamond ring In collaboration with the Diamond and Jewelry Forum The year 2022 is about to end and as every year, the Israeli Jewelry Forum provides data on the consumption habits of jewelry and diamonds in Israel. Some of them are definitely interesting. The average cost paid this year by a groom in order to purchase an engagement ring for his wife stands at an average of 7,050 shekels - a figure that reflec


In collaboration with the Diamond and Jewelry Forum

The year 2022 is about to end and as every year, the Israeli Jewelry Forum provides data on the consumption habits of jewelry and diamonds in Israel.

Some of them are definitely interesting.

The average cost paid this year by a groom in order to purchase an engagement ring for his wife stands at an average of 7,050 shekels - a figure that reflects a slight increase of 3% from what was done last year.

Another aspect that will be examined is the nature of the diamond.

The data of the review shows that natural diamonds are still the preferred alternative: 91% of grooms purchased an engagement ring that includes a natural diamond.

Along with this, this year there was a certain decrease in the volume of their sales and a significant jump was recorded in the sale of laboratory diamonds.

From the review of the macro aspects of the industry, it appears that since the beginning of the year, and the outbreak of the war in Ukraine, which led to the imposition of a business boycott and commercial sanctions on Russia, there has been great volatility in the global diamond industry.

Russia is one of the dominant suppliers of rough diamonds in the world, and controls about a third of the volume of world trade.

Accordingly, many parties in the global diamond industry have refused during the last few months to have trade relations with Russia, this in the shadow of a significant commercial sanction suffered by the mining giant 'Alrosa'.

The forum emphasizes that despite the imposed sanctions, in terms of the outcome, there is a substantial difficulty in enforcing them: "Once a diamond enters a supply chain, it is almost impossible to identify its source. The fact that diamonds are sold in different sizes, qualities and packages, allows their dealers to obscure their identity and trade them another time Once, until they are embedded in a piece of jewelry that is delivered to the end customer," it said.

Indeed, sources in the industry point out that reality shows that it is difficult to impose sanctions on the diamond trade:

Once they enter the supply chain it is almost impossible to identify their origin.

In practice, diamonds are sold in different packages of sizes and qualities and can be mixed and re-traded several times until they reach an engagement ring or pendant.

Diamond Factory natural diamond ring in gold, photo: Thermotek

The global hurricane in the field of diamonds, of course, had a great impact on what is happening in Israel.

The Diamond Factory company points out that the review of the Diamond Supervision Division of the Ministry of Economy and Industry indicates a certain dip in the main trade categories of the industry in Israel: import and export of polished and rough diamonds.

In fact, from the summary of the first eleven months of the year, it appears that the net import of rough diamonds to Israel amounted to approximately 1.68 billion dollars, a decrease of approximately 8% compared to the corresponding period last year (in the month of November there was a decrease of approximately 30% compared to November 2021).

It also turns out that the net export of rough diamonds during the aforementioned period amounted to approximately 1.46 billion dollars - a figure that reflects a decrease of approximately 9.5% compared to the first eleven months in 2021.

The Abraham agreements help the diamond industry

Along with this, an interesting development occurred recently that certainly provides those involved in the industry with a certain reason for optimism: about two months ago, regular exports of Israeli diamonds to Bahrain began.

According to sources familiar with the field, it is expected that the volume of trade between the countries is expected to reach tens of millions of shekels per year.

This development comes when in the background - the Abraham Agreements, which allowed Israeli diamondmen to have direct trade relations with the United Arab Emirates and the emergence of Dubai as a dominant global trade center.

Also, although no normalization agreement has yet been signed between Israel and Qatar, the parties have signed a diamond trade agreement, so analysts estimate that this will increase stability in the diamond industry in Israel.

A final aspect that appears in the review of the forum is the reference to the laboratory diamond industry, which has registered a dramatic jump in the volume of trade in recent years.

Among the prominent companies in the field is the American Diamond Foundry, one of whose investors is Leonardo DiCaprio - who also serves as its presenter.

The company raised $200 million in April 2021 at a value of $1.8 billion, led by the giant Fidelity.

Other competitors are WD Lab Grown Diamonds and Element Six - this is a subsidiary of De Beers, the giant diamond mining and trading corporation that controls most of the world's diamond market.

Green Diamonds, a company that manufactures and markets synthetic diamonds, states that the laboratory diamond market is in constant growth, this is in light of the clear advantages of the product. The only difference between the two is how they were created.

Thanks to advanced technology, it is possible to reproduce the heat and pressure that exist in the bowels of the earth under laboratory conditions so that a real diamond can be grown in a short time.

In addition, its low cost compared to the natural alternative, alongside the increase in awareness of its benefits, makes it a sought-after product."

In collaboration with the Diamond and Jewelry Forum

Source: israelhayom

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