Diamonds are seeing surging reputation in nations which might be rising from lockdowns with the rollout of vaccines.
Large-volume retailers like Blue Nile are reporting sturdy diamond gross sales with common buy costs rising by double-digits. And public sale homes like Sotheby’s and Christie’s, which within the years earlier than the pandemic had struggled to promote white diamonds, are actually doing so at report numbers. Last week, Sotheby’s set a report when it bought a 100-plus-carat flawless diamond for greater than $12 million — totally paid for with cryptocurrency.
All in all, plainly the worldwide demand for diamonds — no less than amongst customers of sure affluence — is reaching a brand new excessive.
Natural Diamond Council chief government officer David Kellie, who leads the business group chargeable for selling the virtues of naturally sourced stones, notably amongst younger shoppers as lab-grown stones see elevated reputation — says a lot of this new demand is the results of feelings skilled throughout the crises of the final 18 months.
“All areas of the diamond jewelry market seem to be very strong. They have been really since first coming out of the first lockdowns last May,” he mentioned.
“We spent a lot of research and time looking into why it’s so strong in order to predict whether this is just a short-term reaction or longer-term trend in the market. A few things firstly around the value of diamonds, there is a much heightened sense of emotional connection between people and diamonds that is different from luxury goods. It’s based on a long-term connection. I do think people see diamonds as an investment of long-term value rather than a short-term endorphin rush that one gets when they are normally purchasing products.”
Now with reopenings seen extensively throughout North America and Europe, in addition to elements of Asia, the NDC is betting on the second half of the yr to proceed fueling momentum round diamonds.
“We will have a new campaign that is celebratory about the value of diamonds. We think people will be in celebration mode. Last year was about relationships and we would like to believe that the rest of this year will still be about relationships, but now in the context of travel, excitement and fun. The mood of the global audience is that now is the time to come out and love life and celebrate what we’ve been through the last 18 months,” mentioned Kellie, who thinks this basic local weather will strongly profit the diamond business.
“I think our industry includes a strong personal connection that is backed by brick-and-mortar stores and traditional methods of marketing with strong, independent retailers that have relationships with clients. Now what COVID-19 has done is accelerate how we compliment that with enhanced digital expertise,” mentioned Kellie of strengthened retail infrastructure within the diamond business popping out of the pandemic.
The NDC is trying to push two new initiatives over the following six months. There will likely be a spotlight round selling recycled diamonds in addition to a marketing campaign that includes designers who take part within the NDC’s Emerging Designers Diamond Initiative program.
When corporations that promote lab-grown diamonds tout their merchandise as a extra eco-friendly different to mined stones, the NDC has strongly pushed again — as was the case when Pandora made the swap to an all-lab-grown agenda in May. While the NDC says that mined diamonds present essential financial advantages for the areas by which they’re discovered, recycled diamonds might maybe be essentially the most sustainable choice.
“We are seeing a lot more activity around recycled diamonds, which for us is something we do want to promote because it reinforces the eternal value of diamonds,” Kellie mentioned. “Whether it’s an individual stone from a collection that has to be remodeled or a diamond that’s been passed down — people want to hold onto the value and sentiment of the stones. For us this is a strength that is unique to diamonds.”
But Kellie added to not count on a diamond market buying and selling app just like Poshmark or eBay anytime quickly as a result of recycled diamonds “are more about people wanting to keep the stones around and pass them through generations. So it’s more about creating a new piece of jewelry from a family stone than it is acquiring diamonds or jewelry on the secondhand market.”
Kellie says the NDC is dedicated to diversifying the design group that works with diamonds. The excessive stage of capital required to jump-start a positive jewellery line has lengthy been a barrier for entry. In January, the NDC began the Emerging Designers Diamond Initiative with Lorraine Schwartz that gives mentoring and underwrites diamond provides on credit score for designers of coloration to be able to assist them decrease jewellery enterprise prices.
“We know the strength of our industry is how it’s multigenerational and that means experience — but that’s both a strength and a weakness. It’s not as accessible to people without those connections. The more we can encourage and develop talent, the better. Diamonds speak to different audiences all around the world and diversity is critical to our long-term success,” he mentioned.