COMPLEX CHALLENGE

Prices are also expected to fall. “We do see a significant drop in prices both on polished and rough side but it’s a complex situation,” Rentmeesters said.

But that’s not the only challenge facing the diamond trade as business started trickling back into Antwerp this week.

Preserving social distancing rules that require ensuring a space of at least 1.5 metres between workers has already proven a challenge in gem cutting workshops where cutting and polishing machines are fit in closely.

Cutters have direct contact with stones and pass on tools between one another while processing diamonds, Smet told Reuters.

While polishers in Antwerp are specialised in high-end stones, such as the world’s second-biggest rough diamond owned by Louis Vuitton, the bulk of the work is done in India, where 90% of the world’s diamonds are polished, AWDC said.

The Indian government has extended the lockdown until May 17 and the country - facing a glut of polished and rough diamonds - is looking to ban rough diamond imports for up to three months, Rentmeesters said.

AWDC said good news was coming, however, from Asia where the phenomenon of “revenge shopping” was bringing back customers into stores and results of the world’s leading luxury group LVMH have been encouraging, even if some markets for diamond jewellery - including in the United States - are taking a hit.

For Antwerp’s long-established diamond business that thrives on trade shows and much travelling, the lockdown has also forced a digital transformation: from hosting the Square Mile’s first online trade show to improving traceability and transparency.

“We are looking for ways to embrace digital technology and that will definitely change the way business is done for good,” Rentmeesters said.

Source: Reuters