How 2020 Affected Diamond Trade Market
Diamond is the hardest known mineral that forms deep in the earth’s crust for millions of years, and the youngest diamond in the world is about 5 million years old. The diamond is a symbol of power, maturity, success, happiness, eternal love, and incredible energy vibration. Many people have written about diamonds, fascinated by its composition and delighted with its beauty.
But today, and especially this year, the whole diamond industry is facing some expected and unexpected challenges.
As more big industry names hustle to buy diamonds online, the industry has seen an unprecedented change.
This year was one of the worst in decades when it comes to almost every segment of our life, and the industry is no exception. Like many other industries this year, the diamond trade has been completely disrupted. 2020, and the global virus pandemic, terrible fires year-round, political unrest in many countries, and societal friction that it’s brought with it has devastated normality across the board. Millions have lost their lives and livelihoods, and no one can be sure when will all of that stop. Hundreds of thousands are grappling with finding firm footing in this new world, and that search for a better future is hard. From billionaires to the poorest, it reaches everyone on the globe, and 2020 has not been forgiving to very many.
However, despite the destruction and mayhem, new systems are coming into play in old businesses. Modern systems provide some of the push businesses really need to finally modernize and enter into the 21st century. Many industries have this problem, with the diamond trade being one of them. Mines and retail boutiques have to shut their doors due to extensive lockdown measures and the threat of pervasive illness, and it is devastating to their business. But the internet is still up and running, and just waiting for everyone to acknowledge its existence and numerous opportunities.
Sites like Uni Diamonds hope to take this newly formed chasm and build a more sustainable paradigm by taking the diamond trading online. Their mission is to create an innovative space that works in the best interest of the entire diamond ecosystem. A digital enterprise that could realistically save this whole industry from future failure that is now more than ever possible.
Destruction of an Ecosystem
Many experts urge public officials and citizens alike to be ready, and unfortunately, this is not the last pandemic we will see in our lifetime. As climate change further destroys ecosystems and animal behavior adjusts, we will see new diseases jumping the evolutionary gap. What this means is that industries that are steeped in tradition, and are sticking to their used practices purely because We’ve always done it this way attitude, which serves only to set themselves up for the next big hit, which could reasonably happen in our lifetime. We must admit that 2020 has laid bare the flaws in the existing system, and the diamond ecosystem has been all but destroyed. Making an exceptional move is to place diamond trading online, which will be much more relevant in times to come.
As mines close, because workers fall ill, proprietors aim to keep that from happening, or due to the extended curfew, long-standing top producers pull back on annual production. All this leads to smaller mines looking towards consolidation as contracts with distributors fall through. Lockdown measures have also put a stop to most live sales events, as buyers are urged to stay home, and there is no business when there are no people to make that purchase.
Sales of Rough Diamonds
Mainly because of stay-at-home orders and travel restrictions, regular sales events like the one De Beers hosts in Botswana have been canceled. All of this leads to producing less demand for the already crippled mining industry and leaving some rough diamonds to gather dust with sellers. It is a terrible time for the diamond industry, and even if someone would like to purchase diamonds, they are simply not able to do so since there are no or very few options for doing that online, which is today, in 2020, almost impossible to imagine.
Cutting and Polishing
All reasons mentioned above affected every sphere of the diamond industry, and as an example of that, many workshops specialized in cutting and polishing have to close their doors to compound the rough sales issue, either due to illness or restrictive measures taken on by governmental agencies. Curfew and other measures require that most workers stay at home, with no possible way to work as they did before. Of those that have been able to reopen, they unseal their doors only to a fraction of their usual workforce. Some of them are even operating at barely 25% of their standard workforce capacity, which is especially the case with India as it got hit hard by the COVID-19 virus pandemic.
Internet is here and available for everybody, but despite all that availability of online diamond trading, only a few are primed to flourish in the new environment, but one thing is for sure, they do not for lack of interest. Because of this, the few cities that offer grading and certification have had limited openings. Specifically in Antwerp, which is perhaps the hub of grading, where services have all but stalled. However, should these cities begin to consider a singular, or work-from-home paradigm, they could realistically provide better availability to those that buy diamonds online. The main business model is to offer your product to as many people as you can, and for doing so, why would you not use the most reasonable way for that.
Retail is the part where things can get more complicated, as much of the diamonds retail industry resides in the US. Many purchasers tend to see diamond buying as a tactile and personal experience. But those things are making it challenging to adopt online buying habits. With the rest of the chain at a near standstill, and many malls and retail shops close, standard diamond clients may need to rethink their strategies on how to get diamonds. Of course, it is that connection between the seller and buyer, and one depends on the other, which is why the online market is the best solution and the next big thing for the diamond industry.
How To Get Diamonds in a Pandemic
In reality, there is no other way of going forward than to begin to shift diamond trading online. From selling rough-cut diamonds to grading and retail, all of these services could realistically be offered in an online format. There is no reason for avoiding that, and this is something Uni Diamonds is optimistic about, as they work to curate a system that offers a better experience for both buyers and vendors. They are doing that by creating a system of trust, based on the fundamentals of high security and reliable data and certification. It may sound confusing and complicated, but it is not, and even if it was that difficult, it is still the right direction to grow the diamond business.
Although many feel less than enthusiastic about buying diamonds online, 2020 has shown the industry that it is time to move forward, or fall prey to the inequity of time-honored tradition. The problem is evident, but so is the solution, and even though the experience of buying them online may not be the same, it is still a better solution than not to be able to buy it at all.