Diamond Buyer - Antwerp: Diamond hub throws another party to up its game

Source - http://www.ft.com/
By - Claire Adler
Category - Diamond Buyer
Posted By - http://tinyurl.com/DiamondBuyer01
 

Diamond Buyer

In late January, Antwerp will hold its largest ever invitation-only show in its 110-year-old diamond trading halls, pulling out all the stops to entice jewellers, manufacturers and retailers.

 

Seventy-five exhibitors are expected to welcome 500 visitors from 50 countries, including Russia, China, the US, South America and the Middle East. Speakers include Reena Ahluwalia, an Indian-Canadian jeweller whose designs have been feted with awards by De Beers and Rio Tinto and were transformed into a Belgian postage stamp in 2010.

Fair organisers say 80 per cent of all rough diamonds and 50 per cent in value of polished diamonds in the world are traded in Antwerp, with an average turnover of $350m daily. 

But business is not what it used to be. While global trading volumes are stable or rising, the volume of the trade in Antwerp is down. Once it was arguably the world’s most important centre for polishing and trading rough diamonds. Today, however, much polishing has shifted to India.

The rise of internet diamond businesses, sometimes sister companies of Antwerp-based groups, has contributed to driving down prices.

“The mood in Antwerp is negative,” says an industry insider who did not wish to be named. “Polished diamonds are selling slowly, which is a reflection of the general market, especially in Europe.

“While the industry has seen dynamic growth in the Far East from which Antwerp has benefited, there has also been a big shift to Hong Kong.The government and Antwerp’s long- established banking infrastructure are not supporting the trade like they used to.”

The next generation of some established companies are not joining their family businesses as they fear it may not offer the wealth and security it brought their parents. “Over the last two years, many Indian businesses with offices in Antwerp have split their interests more evenly between diamonds, coloured stones and property,” says David Marshall, London-based jewellery designer and manufacturer.

Be that as it may, fair organisers have been fielding calls from more buyers than ever to secure their place on the coveted list of guests. Last year’s fair included a lavish dinner for 600 and their partners, who were flown in at the fair’s expense. 

Antwerp is doing its best to evolve with the times, establishing a Facebook presence and, in an increasingly marketing-savvy environment, is using its annual fair to shine the light on what it does best. Today the city industry’s largest source of revenue comes from polished diamonds. It is still home to the traditional crafts of diamond cutting, especially fancy shaped stones, and re-cutting and polishing high value stones.

Companies from Israel, India, Russia, the US and Hong Kong, have offices or partners there.

Dimexon, a Mumbai-based group with manufacturing facilities worldwide, recently opened a new facility in Antwerp, firmly establishing its European head office in the city’s diamond district. “Dimexon’s Antwerp unit is focused primarily on polishishing and jewellery distribution to address the requirements of the western markets, as well as rough diamond sourcing,” says Vishal Mehta, company director. 

For UK-based companies, Antwerp is only a day trip away, making buying relatively convenient. British companies also have the advantage of not having to foot the VAT bill for diamond imports from Belgium, even if they originated from elsewhere.

Jody Wainwright, sixth generation director and head gem buyer at Boodles, regularly sources stones from Antwerp. 

“While the glamour of thefair is impressive and exciting, companies will come and go, but Antwerp remains home to companies that have withstood the test of time, including those my great grandfather bought from that I still buy from today,” he says.

Tobias Kormind and Vadim Weinig, founders of 77Diamonds, look to Antwerp for larger, rarer stones. “Only the most skilled craftsmen are left in Antwerp, which means there is quality there. You can also find niche goods in Antwerp, and you can get any type of unique diamond shape made. If you are within the circle, there is a lot of trust,” says Mr Weinig. 

David Marshall says suppliers are now regularly visiting London. “Some of the companies have realised they can’t just sit there and wait. They have to get out and promote themselves like everyone else as, nowadays, you can have a stone flown in the next day from pretty much any supply source.”