The New Face of the New NormalSeptember 02, 10
Be the public sentiment what it may be, whatever the review mission writes in its report (if it succeeds in writing a report), and over whatever issue and for whatever reason the NGOs slam Zimbabwe – the global diamond industry already has a verdict.
As a diamond business information firm, companies often call with questions relating to the industry – from a historical fact to full market analysis of a topic. But no single topic got us as many phone calls, emails or visits to our offices in the past few weeks as the tender in
Much was reported in the past few weeks about the tender and much of it, as we know now, was wrong.
Buyers from only two countries were successful bidders –
The highest winning bid was more than $400 p/c, offered for a gem-quality diamonds lot.
Of the remaining $40 million or so worth of diamonds, some were industrial goods that sold for less than $10 p/c.
The majority of the offered goods, about 80 percent, were produced by Mbada Diamonds and the rest by Canadile Miners.
As to the Dubai-based buyers, at least one of them bought goods in
Another tender is planned to take place this month, and you should expect to see the same faces there. This is the face of the new normality. Not only that buyers from around the world will fly to
As in other cases in the past, not all the rough that enters the plant remains there to be polished. Some quietly leaves through the back door only to return polished some time later and exits the front door as if it was polished locally. Some of the rough never returns.
From a manufacturer's perspective, the logic is simple: Do what you need to buy the rough at a reasonable price, polish what you can in the most economical way, sell the polished and unneeded rough at a profit. Some may call it Economics 101; others may call it simply doing business. In the diamond industry we may choose to call it the new face of the old normal.
I'll be on vacation during the Jewish New Year. The next memo will appear on September 16. Shana Tova to all.