Unity matters
DPA’s ‘Real is rare,’ campaign slogan connotes a positive message. All major diamond miners makeup the membership of this association. De Beers brands Forevermark diamonds, Rio Tinto has Australian diamonds, Dominion Diamond brands CanadaMark, and Alrosa will soon be marketing Russian diamonds. The mission of the DPA is to promote all diamonds, and yet the core members see no conflict with their privately branded diamonds.
The fundamental reasons for purchasing a diamond are emotional. Branding them is unnatural because all diamonds are simply one element—carbon. Branding watches and jewellery is a natural progression because of the attributes of function and design. The idea of branding a diamond is based on the false pretence that one diamond is better than another, even when each have the same physical characteristics. Some branded diamonds make it seem almost reprehensible to buy any other. Brands present consumers with a multitude of reasons to question the purchase of any diamond. At the present time, diamonds are competing with themselves and if they succeed, they will defeat themselves.
The Gemological Institute of America (GIA) and The International Institute of Diamond Grading and Research (IIDGR) established by De Beers are brands fighting for monopoly of diamond grading reports. De Beers’ laboratory currently grade all Forevermark diamonds with the claim of grading to a superior ethical and empirical standard. The GIA, in order to compete, has countered by announcing a multitude of new initiatives including a new diamond origin tracking service. This war is in its initial stages. Retailers and consumers will be the collateral damage as they get caught in the branding cross fire. As the African proverb says, “When two elephants fight, it is the grass that gets trampled.”
Retailers already need to explain the artificial difference between a branded diamond and a generic diamond. Soon, they will need to justify differing claims made by competing branded diamond grading reports. Logic concludes one universal diamond grading standard would be most beneficial, but these mega-brands are more interested in profit.
Diamonds are not a liquid investment. The new Rapaport Investment DiamondReport is designed to promote diamond investment portfolios. Diamonds will never be a properly regulated straightforward investment opportunity.
There are too many subjective elements and too many hands in the pot. Investment diamond schemes have done nothing but damage diamond credibility. Investors sooner or later discover diamonds cannot be resold easily and certainly not with real investment returns. These schemes always fail and leave a trail of damage to be cleaned up by those who legitimately buy and sell diamonds for use in jewellery.
Diamonds are a luxury product. No other luxury product is attempting to become a commodity that can be traded on world stock exchanges. In fact, commodity trading is the antithesis of luxury.
Consumers pay a high price for luxury and price is based on product desirability. The price of luxury rises and falls based upon industries’ ability to work together to elevate the image of the product.
The diamond industry is reacting to the disruptive forces changing traditional business. However, the diamond industry is not reacting well. Diamond-related initiatives are dwelling on distractions and negativity rather than collectively contributing to the elevation of all diamonds.
The reason the slogan ‘A Diamond is Forever’ works is because it has an inclusive positive message. The comparison of all diamonds to enduring love is brilliant. In contrast, pitting diamonds against one another detracts from the essential message that all diamonds are desirable.
All views and opinions expressed in this column are solely of Melvin Moss of Regal Imports Ltd., and do not necessarily reflect those of Jewellery Business or Kenilworth Media Inc.
Melvin Moss is a long-time diamond supplier and the owner and president of Regal Imports. He is a diamond industry activist and produces a monthly state-of-the-industry news video, which can be viewed on www.regalimportsltd.com or on YouTube. Moss speaks to industry issues in an honest and straightforward manner, and is an advocate for the diamond industry and ally of the retail jeweller. He is currently helping launch House of Dehres in the North American market. Moss can be reached at melvin@regalimportsltd.com.
Excellent commentary