It was a Challenging Year, It Is a Promising New Year

We are blessed for we are living in interesting times. 2012 has been anything but boring. Riding the whiplash of the 2008 economic crash, this was clearly a turbulent year, the kind that will be well remembered.

In 2012, producers operating cash-intensive diamond mines witnessed a drop in demand for rough diamonds, while rough diamond prices peaked before tumbling in the second half of the year.

Polished diamond prices fluctuated, with a clear downward movement, falling 4.3% year-over-year, which is the average rate they usually increase in a year. Not surprisingly, manufacturers and traders suffered from a chokehold of limited liquidity.

Specialty jewelers saw sales grow on average by about 4%, minimal, but far better than most others in the pipeline.

All this took place against the backdrop of the global economic issues plaguing developed and undeveloped countries, in consumer and manufacturing markets alike.

We have no crystal ball, but we do see much positive. Where there are problems, there are opportunities. The financial markets are nearer to the industry, ethics is front and center, new alliances promise positive developments, “transparency” is no longer a dirty word.

Here at IDEX Online, our staunch belief that polished diamond prices should be transparent and presented in an accurate and unbiased way was echoed by a significant number of buyers asking to have and use the IDEX Diamond Price Report. We plan to stick to that core set of beliefs.

Traders and buyers used the polished diamond spot market Guaranteed Diamond Transactions™ more than ever before, removing barriers from their path to more business with fewer distractions, and more information with less noise. This was also a record year for our research department, with more companies turning to us for insights about the diamond pipeline. This instills confidence that matters are set to improve.

We wish you a year of growth, a year filled with interesting challenges that are met head-on and resolved, a year of security and good health, a year spent with family and friends. We wish you a very happy New Year.

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