In his most recent post, industry analyst Edahn Golan takes a look at history and points to a series of disastrous events in the past decades and, more importantly, how despite the fact all of them had major effects on the diamond industry in the short-term, in the long run, the industry managed to recover and even grow.
Golan cites a number of serious crises, such as the shocking events of 9/11, the financial crisis of 2008 and the 2011 Tsunami and nuclear disaster at Fukushima, Japan. In each of the cases, despite the immense tragedy and devastation, people spent more money on diamond jewelry as the recovery set in.
“History is a great educator, things will get better after it gets worse”, Golan writes. Diamonds, as a symbol of love, eternity and success, are associated with the feelings of surviving a bad situation, buying something symbolical of value amplifies those sentiments. For diamond companies, the key will be how they make it through the crisis, Golan concludes.