A reduction in the supply of rough diamonds is underpinning the natural diamond market, the CIBJO Congress heard.

Industry journalist Rob Bates and analyst Avi Krawitz, speaking on a CIBJO panel with analyst Edahn Golan, referred to the impact of cuts in mining output in helping to buoy natural diamond prices. The three regularly collaborate on a podcast called “The Diamond Dudes.”

Mr Bates said consumer sentiment in the United States was “not very good” except at the high end. However, he said a buoyant U.S. stock market was bolstering the confidence of jewellery customers with share portfolios.

Mr. Krawitz spoke of the importance of the debate at the CIBJO Congress over the precise nomenclature that should be used for synthetic diamonds.

CIBJO President Gaetano Cavalieri, who joined the discussion, said decisions on standards by CIBJO could have a direct impact on the livelihoods of people employed across the industry.

“We cannot forget the fate of people in the industry. We at CIBJO have to consider the social aspect,” Dr. Cavalieri said.

Echoing the CIBJO President’s comments, Mr Krawitz said reductions in diamond mining output were having a direct impact on jobs and the livelihoods of those working in and around the mines.

The panellists spoke about the importance of developing effective marketing efforts to boost demand for diamond jewellery.

Mr Bates said jewellery consumers needed to know more about the extent to which diamond mining supports the livelihoods of impoverished workers in developing countries such as Botswana.

Joining the discussion, Mehul Shah, who heads the World Federation of Diamond Bourses, spoke about the strong growth of jewellery retail in India, now the world’s second-largest jewellery market. He estimated that it was increasing by around 10 percent year on year.

Raluca Anghel of the Natural Diamond Council said she did not see competition between natural and synthetic diamonds, but acknowledged competition between natural diamonds and alternative luxury experiences such as travel.

Raj Mehta, CEO of diamond supplier Spectrum, said the natural diamond market was firming in response to the shortage of rough diamonds.

He lamented what he described as a lack of effective marketing of natural diamond jewellery by the trade.

Mahiar Borhanjoo, Chief Commercial Officer of De Beers, said polished diamond prices were currently stable.