Heads of Israeli Diamond Industry Report to Members

In a fully packed trading hall in the Israel Diamond Exchange Yahalom building, heads of the local diamond industry reported to IDE members about recent activities relating to the current global economic crisis. Generic advertising, prices, banking and more were discussed. The important message was remain calm.

IDE President Avi Paz, and following speakers Moti Ganz and Shmuel Schnitzer, all stressed a message of remaining composed. Each in their own way, and in background discussions as well, wanted to convey that the rumor mills and doomsday mood are only causing harm. Instead, they called to keep cool, reminding the listeners that the diamond is a valuable and demanded product with a strong market.

Speaking to the many hundreds of attending members, Paz reported on the recent discussions held in Antwerp where it was agreed to form an industry consortium that will manage generic diamond advertising for the global diamond industry.

“These are extraordinary times,” Paz said, “in which the U.S. government is pouring $700 billion to support the economy.” He told the crowed he asked Martin Rapaport to put a freeze on his price list until after the holiday season, which did not happen.

“Since than there is a demand that the WFDB will form a diamond traders price list,” a call that was met with heavy applause by the listeners. “There is wall to wall support for this in Belgium, India, the U.S. and Japan. I hope that soon we will be able to report news about this.”

The Israeli banks, including Leumi, Union and Discount, expressed confidence in the industry and continued support. Leumi told Paz in a meeting Tuesday morning that it denies the report on IDEX Online that it will not finance rough diamond purchases. Paz said he is also working on a solution that will allow working in some way with goods the banks hold as collateral.

Another issue was income tax. The agreement with the ministry of finance is that if there is a dramatic change in the industry, the agreement with the taxation authorities will be reexamined. This, Paz said, will go into discussions soon.

Paz told the members that a fund of one million shekels ($250,000) to support financially distressed IDE members has been established.

Following, Israel Diamond Institute President Ganz said the Israeli industry’s debt to the banks is only 10 percent of turnaround, much lower than the other centers. He called on the members to give a pro-mille or two of their exports for generic advertising, promising that the IDI will double each donation.

Finally, Ganz disclosed a plan to bring buyers to the Israeli exchange, paying for part of the flight and hotel expenses.

Former IDE President Schnitzer reminded listeners that the economy acts in cycles and better days are ahead. Regarding the Rapaport price list, Schnitzer said the sharp hikes in late May were the seed of disarray.

He expressed disappointment that a result ion to stop rough diamond imports was not adopted, saying that personal interests interfered in the wider good.