Diamond Marketing

We all know that the Internet has had a tremendous effect on the way diamonds are marketed. Although retailers are worried about companies that promote diamonds as a secure and safe purchase over the internet; internet diamond sites are only the tip of the iceberg. The ultimate ambition of the big diamond players is to eliminate diamond marketing from retailers, wholesalers and even internet marketers like Blue Nile. The goal is to market directly from cutter to end user. The means of accomplishing this goal is diamond investment funds.

Sir Richard Branson was part of the launch of the most resent diamond investment fund called DIADAX. The most striking aspect of this new diamond marketing fund is that it has the support of the Antwerp World Diamond Centre, the Antwerp Diamond Bank and it is also backed by the likes of Dilip Mehta of Rosy Blue and the former president of Alrosa, Sergey Vybornov. This fund is targeting rich investors in Asia by means of the Singapore Diamond Exchange. But let’s have no illusion, the goal is to try to change the way diamonds are bought and sold to all diamond consumers.

DIADAX will start by offering diamonds of one carat and up with a minimum portfolio buy in of 250 thousand dollars. They will sell diamonds to anyone with the bucks to buy and will offer a resale policy, after one year’s holding period, with a 2% commission for re- sale. The plan is to start with the big spenders and then set up a system that will facilitate moving down the buying chain. This is the plan and the players are real and formidable! The aspirations of The Antwerp World Diamond Centre are simply to put Antwerp back on the map but the big diamond players are more ambitious. They no longer want to take a piece of the diamond pie; they want the whole thing. So, no matter what the spin, the big boys are pushing diamond funds and relying on the assurance of diamond certificates as the only credible way to accomplish a seamless financial transaction. The traditional way of marketing a diamond by relying on viewing the diamond and the understanding that all diamonds are unique is being purposely diluted. The diamond funds success pivots critically on eliminating the subjective nature of diamond grading. So, all SI1s are promoted as identical. I think retailers should consider this information when they are pushing certificates and not explaining why a diamond needs to be viewed to understand its value proposition.