The initiative was born on March 20, 2020, immediately after the Rapaport Group (RG), which operates the diamond industry’s leading polished trading diamond platform and price index system, unilaterally adjusted prices downwards for about 95 percent of the categories listed in the round and fancy polished diamond price index of March 20, with an average of five to seven percent, across the board. The RG’s unilateral adjustment of its price index caused an unparalleled uproar in the global diamond trade. The group published an open letter to the industry, which is printed below.
Consequently, the diamond traders listed below jointly announced that they would use the RG’s polished diamond price index as published on March 6, 2020, as a reference point until a new, independent, non-biased and transparent alternative would be presented to the diamond industry.
Meanwhile, the World Federation of Diamond Bourses (WFDB) announced that a state-of-the-art, “cross-bourse” trading platform is under development (www.get-diamonds.com). It will very soon be available for the diamond industry and trade at large. Speaking on behalf of the WFDB, Yoram Dvash, President of the Israel Diamond Exchange, advised - in a letter sent to the trade – that those who wish to post their stocks elsewhere in the interim could do so on the trading platform of Get Diamonds.
The group of diamantaires who initiated the drive for an alternative trading platform began organizing their initiative on Friday, March 20, using social media channels such as WhatsApp and Instagram. Within hours, diamond traders and manufacturers from the major diamond trading hubs - Mumbai, Antwerp, Tel Aviv, New York, and Dubai – came together, sharing their grievances and objections to the RG’s newly published round and fancy polished diamond price index. The arguments voiced by participants in the online discussions were, among others, that over the years, the RG has operated the trade’s leading price index system in a non-transparent manner and had dictated polished diamond prices, revising them upwards or downwards, without offering any guidance, let alone explaining the rationale or mechanism that lies behind its decision-making process. The current slow trade of polished diamonds is the direct result of the crippling effects of sovereign nations under total lockdown, not by supply and demand fundamentals. Therefore, the latest polished diamond prices published by the RG do not reflect trading prices in the global wholesale diamond market.
The group members consequently resolved to remove their polished diamond inventories from the platform, stating that as a collective, they no longer wish to depend on the RG’s trading platform and price index. They meanwhile are posting their stocks on other existing platforms.
Open Letter to Our Colleagues in the International Diamond Industry and Trade
April 2, 2020
The pandemic caused by the Covid-19 virus has brought almost the entire world as we know it to a standstill. While China seems to be slowly recuperating from the impact of the pandemic, in other parts of Asia and the western world, the pandemic is still raging, claiming thousands of victims a day.
Of course, like many other sectors, our industry, the international diamond industry and trade, also has ground to a halt. Throughout the diamond supply pipeline, business activities have ceded. All around the globe, diamond mines have been put on care and maintenance, while business activities in the midstream (manufacturing and trade) and the upstream (the retail jewelry sector) have dwindled to a trickle.These developments are unprecedented, and we’re all learning to confront the challenges the pandemic is presenting to us, both in our personal lives as well as our businesses. Of course, we wish all our colleagues the strength and stamina needed to see this crisis through and, above all, good health.
Therefore, in light of the above, we, the undersigned to this letter, were shocked and extremely disappointed to discover that on Friday, March 20, the Rapaport Group (RG), the owner and publisher of industry’s leading polished diamond price index system, had unilaterally adjusted polished prices downwards for about 95 percent of the round and fancy polished diamond categories listed, marking prices down on average and across the board with approximately seven percent.
Price changes in either direction should be a reflection of actual trading prices and the volumes of polished diamonds bought and sold. RG’s action of March 20 was, unfortunately, made without regard to either. We are alarmed and troubled as to the methodology and timing of establishing and setting market prices without trading activity in the market. RG’s actions are further proof that, over the years, it has operated and dictated polished diamond prices in a non-transparent manner, revising prices upwards or downwards, without offering any guidance, let alone a mechanism or rationale that lies behind its decision-making process.
The current slow trade of polished diamonds is the direct result of the crippling effects of sovereign nations under total lockdown, not by supply and demand fundamentals. Therefore, the latest polished diamond prices published by the RG do not reflect trading prices in the global wholesale diamond market.
Within days, a large group of diamond traders and manufacturers from the major diamond trading centers Antwerp, Dubai, Mumbai, New York and Ramat Gan (Israel) - a group much larger than the companies that signatories to this open letter - have come together to voice their resistance and rejection of RG’s actions. Collectively, they no longer wish to depend on the RG platform and price index. Also, they have resolved that the RG price index, as published on March 6, 2020, will serve as a reference point for future diamond trading until a new, independent, non-biased and transparent reference would be presented to the diamond industry.
Since rallying behind this unique, “popular uprising,” more than 500 diamond traders and manufacturers, among them most of the world’s leading diamond firms, proceeded to remove their polished diamond inventories from the RG trading platform. At this point, it is estimated that about 70 percent of the original polished diamond inventory was removed by the diamond trade, i.e., close to $6 billion worth of polished diamonds. Each respective company did this voluntarily.
Also, the group has resolved that it wishes to engage an alternative, third-party trading platform that will be independent, innovative, and fully transparent. The World Federation of Diamond Bourses (WFDB) announced that a state-of-the-art, “cross-bourse” trading platform is under development (www.get-diamonds.com). It will very soon be available for the diamond industry and trade at large.
The above news release and open letter were approved and issued by:
AA Rachminov
Aadi Gems
Aaryaa Dimon
Aashi Diamond
Adi Gems
Akshargems
Alisar Gems
Aliya Diamond
Almog diamonds Asia Ltd
Alpha Creations
Amare Diamonds
Anand Exports
Anders Diamonds
Andre Messika LTD
Anita Diamonds
Ankit Gems
Arie Pienica Sons
Arpandiam
Arslanian Freres
Aspeco HK
Aspire Designs
Babayoff Diamonds
Beta Diamonds
Bhajan Jewel
Bliss Diam
BR Gems
Brilliant Facet
Brilliant Star BV
Brilliant Trading Company
Carbon 6 Diamonds
Chaitya
Cosmos Diam HK
Dalumi
Dharmanandan Diamonds
Diamond Creation
Diamond Emporium
Diamond Trading Company
Diamtrade
Dianoche Pte
Diashimmer
Dimexon Antwerp
DMI Diamonds
DN Diamonds
Double Star
Dynasty Diamonds Gumpert C
E And G Angels Diamond
Eitan Grossman
Elite Diamond Traders
Eliyahu Yona
Elul Diamonds
Eshed Diam Ltd
Eurostone Diamonds
Excellent Diamonds Ltd
Exim Limited
Facets
Fima Diamonds
Finestar Jewelry ans Diamonds
Gal Diamonds
Galco Group
Gem Nine
Glacial PVT
Glitter Success Ltd
Glorytrading
Goldland HK
House of Gems
Hrishi Diam
Ideal Brilliant
IDS Diamonds
Imreco Import
Jadfiya Diamond
JB Brothers
Julius Klein
KA Diamonds
Kapu Gems
KGK Diamonds
Khaled El Ali Eternal Diamonds Bvba
Khushi Gems
Kings Diamonds
Kothari Trading HK
Kshama Impex
KTF Inc
Kwiat
Laxmi Diamond HK
Levuma BVBA
Lotus star ltd
Lower Orange River Diamonds
M&B Ltd
Meru Gems
Michael or llc
Millennium star
Moti Eliyahu Diamonds LTD
MSD
Multi Gems BV
My Diam
Navinchandra Laxmichand Shah
NFR Innovation
Nirs LTD
NN Diamonds
Noa Trading
Novel Collection
Orissa Gems
P Hirani
Paco Art
Paloma Diamonds
Pierre Hirschfeld Atal
Pioneer Gems
Pluczenik Diamonds
PMI Diamonds
PN Shah
Podicko Diamonds
Poligem Diamonds
Preksha Gems HK
Premier Gems
Pristine Gems
Reddiam
Regent Diamonds
Ronald Abram
Royal Gem
S Vinodkumar
Safdico
Samir Gems
Samyag Gems
Shirtal Diamonds
Shivaan Diam
Shivam International
Simgems
Simon Namdar
Skyblue Diamond
Solow & Co
Sparkling star
SRK diamonds
SRS Diamonds BVBA
Star Gems
Star Rays
Sunview
SV Gems
Tache NV
Taly Diamonds
The Last Diamond Company LLC
Trustar Diamond
Twinkle Jewelry
UB International
Ultimate Diamonds
Uni Diamonds
Uniglo BV
Universal Diamond Corp
Universal Gem Exports
Veera Dimon BV
Venus Jewel
Vishinda Inc
VN Diamonds
Wala Gems
Windiam
Yaacob Guy
Yondor
Zakheim collection
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