"There are some that would claim that the key step to solving the current crisis in the diamond industry is to drastically reduce the price of rough diamonds, specifically by the main diamond producers," says diamantaire Ehud Laniado. "This erroneous belief reveals some widespread confusion about the diamond market.
"The manufacturers, who should play the role of gatekeepers, must put their foot down. It is the gatekeepers’ responsibility to translate the transaction price for their polished into maximum rough diamond prices by deducting their own profits and informing miners that that is the most they are willing to pay."
Among the issues he pinpoints are: miners don’t set polished diamond prices, consumers do; consumer demand is declining; manufacturers are languishing; and there is a contracted rough supply system.