Loading ...TEL AVIV – The family businesses that make up the global diamond trade have seen their profits wiped out over the past five years, hit by shaky financing, increased costs and uncertain demand from customers who prefer hi-tech gadgets to bling. Manufacturers who cut and polish diamonds have found themselves caught between giant mining companies charging high prices for rough stones, and big retail chains that demand gems at low margins to keep sales moving. While the $80 billion overall spent on diamond jewellery last year was a record, the manufacturers are expected to share a profit of just $100-million in 2015. That is half last year’s total and down from $900-million in 2010, according to Chaim Even-Zohar of Tacy Ltd and Pranay Narvekar of Pharos Beam in Mumbai, two of the industry’s top consultants. Even-Zohar estimated that 300-000 Chinese and Indian workers had been laid off out of nearly 1-million employed in gemcutting in those two countries, where most manufacturing takes place.
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