It's So Easy To Criticize - March 2025
It’s so easy to criticize, especially when things aren’t going so well. So, if it’s so easy, why don’t I just have a go at it!
A brilliant idea concerning the marketing of generic diamonds was proposed at a conference held in Dubai last year. The idea is to charge a small levy (a fraction of a percent) every time a diamond changes hands, from mined rough to finished polished sale. The funds collected will be given to the Natural Diamond Council. The idea was universally applauded, but since then, …crickets. To be fair, this idea may be discussed at an upcoming Presidents’ Meeting of the International Diamond Manufacturers Association. If all goes well, and this initiative follows the usual bureaucratic path ……something might happen over the next ten years!
Diamonds are being considered as part of retaliatory tariffs to be applied to the United States by the European Union and Canada! …. Isn’t that just peachy!
Rolex has signed Leonardo De Caprio as a brand ambassador. Leonardo is a well-known promotor and investor in man-made diamonds and, the man behind the movie Blood Diamond. He is an outspoken critic of natural diamonds ... I would like to congratulate Rolex on making a fine choice!
The Russian war against Ukraine has been going on for three years and still the diamond industry is going back-and forth with ideas to make Russian diamond sanctions seamless and effective. You know, it takes time to put procedures in place and there is always a good reason for delays. I’ve just read that, “The European Union (in cooperation with the G7 and other countries) has postponed the mandatory traceability mechanism for enforcing Russian diamond sanctions to January 1, 2026”. I’m sure that when the diamond industry gets around to making sanctions truly effective, … It will be too late to make a difference.
Signet has botched their purchase of James Allen and Blue Nile. Since November 2023, sales generated by these two companies have consistently fallen short. Signet spent a half a billion dollars on these two currently nonprofitable companies.
With regards to Signets’ partnering with De Beers in their joint venture to promote natural diamonds, many Signet owned stores are pivoting to more lab grown diamonds…. Just another good idea going wrong?
Signet stock has been performing very poorly, so much so, that a major stockholder is calling for the sale of the corporation … lock, stock, and barrel. In November 2024 Signet shares fell to $98 and in early March they were sitting at $52…. This stock is performing just like De Beers stock!
Bruce Clever, the former CEO of De Beers said that “he was lucky to quit when he did”. No further comment!
Laurelton Diamonds, a sightholder and cutting facility in Belgium, wholly owned and operated for and by Tiffany and Company, is planning to lay off over half its’ staff!
Speaking of Belgium, Belgium’s polished exports fell 24% year on year and rough imports declined 48%.
How about Canadian diamonds? Rio Tinto reported a 127 million-dollar loss at its Diavik mine in the Northwest Territories and Burgundy Diamonds reported a 94.7 million-dollar loss at its Ekati mine…. These figures are in U.S. dollars and before the implementation of any tariffs!
India is responsible for over 90% of the worlds’ diamond manufacturing. The economic downturn has reduced demand, and geopolitical conflicts have caused many diamond factories to close, severely reducing jobs, while wages have been slashed by as much as 50%. All this has led directly to 52 worker suicides. A worker’s strike is scheduled for March 30.
And that’s all I’ve have for you this month and it’s a lot to digest…. Thank you very much for watching the Regal Imports News.
Mel Moss
