WDC Takes Care of Business

RAPAPORT... Shanghai was host city to the 33rd World Diamond Congress (WDC), the biennial gathering of the general assemblies of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA), from May 12 through May 15.

Lin Qiang, president of the Shanghai Diamond Exchange (SDE), told the congress that in the last two decades, China has grown into the world’s fourth-largest consumer of diamond jewelry and the second-largest global diamond cutting center after India. In 2007, SDE’s trading volume totaled $1.07 billion. Its turnover reached $282 million in the first quarter of 2008, up 43.8 percent from the same period in 2007.

“We are aiming to become one of Asia’s — or even the world’s — leading marketplaces,” said Lin. SDE is the only diamond exchange in China, with 215 members to date.

Diamond Exchanges Admitted
In significant congress business, the WFDB General Assembly voted to accept three diamond exchanges: the Diamond Dealers Club of Australia, the Istanbul Gold and Diamond Exchange and the Panama Diamond Exchange, bringing the total number of WFDB member bourses to 29.

In his final report as outgoing WFDB president, Ernie Blom said “All three organizations are located in countries that are not yet served by a diamond exchange, and all three serve regions with excellent potential. The Australian bourse will be located in an affluent market that reaches beyond the country into the markets of New Zealand and the South Pacific. The Turkish bourse is situated in the heartland of one of the world’s most rapidly growing consumer markets that is expanding its tastes from gold into diamond-set jewelry. The Panama bourse sits at the gateway to an entire continent that is not yet served by a single, local diamond bourse, and that recently was cited by De Beers Managing Director Gareth Penny as a diamond market of the future.”

Noting that “It is the stated objective of the WFDB to encourage the establishment of diamond exchanges in all developing markets,” Avi Paz, WFDB president, added “Each one of the new bourses provides our business with expanded reach in markets with great potential.”

In discussions with RDR, Erez Akerman, president of the Panama Diamond Exchange, said that Latin America is a huge market but has been underestimated, untouched and neglected for many years.

IDC Rules Recognized
In other industry business, the World Jewellery Confederation (CIBJO), in a joint statement with WFDB and IDMA, stated that it recognized and respected the revised International Diamond Council (IDC) Rules for Grading Diamonds. Under the new IDC rules, gem-quality diamonds created in a laboratory or factory can be described as: “synthetic,” “laboratory-grown,” “laboratory-created,” or “man-made,” and the descriptor must always be followed by the word “diamond” or “diamonds.” Under no circumstances can the term “cultured” be used to describe gem-quality synthetic diamonds.

Paz also updated the congress attendees on the WFDB Mark Programme, noting a significant increase in the number of individual bourse members applying for personalized WFDB Marks in recent months. Seven WFDB Mark Associate Members were honored for their contributions to the WFDB Mark Programme, including Antwerp World Diamond Centre (AWDC) and Rapaport Diamond Report.

Sergey Vybornov, president of ALROSA, delivered the congress’ keynote speech, emphasizing the need to develop a cohesive marketing policy for diamond jewelry and expressing his company’s readiness to invest in a joint industry effort.

During the congress, IDMA announced the launch of the “global diamond marketing and promotion campaign” to raise awareness of the need for effective advertising and promotion of polished diamonds and diamond jewelry, and to drive increased consumer demand. IDMA reconfirmed its commitment and support for the Diamond Development Initiative, and its commitment to remain involved in the Council for Responsible Jewellery Practices (CRJP).

IDMA also accepted two new members — Armenia and Botswana — and announced it also has received a membership application from Namibia.

Elections
Paz was elected president of the WFDB. Outgoing president Blom was elected vice president and named a Lifetime Honorary President of the WFDB. The other elected officeholders included Michael Vaughan as secretary general, Dieter Hahn as treasurer general and Freddy Hager as deputy treasurer general.

IDMA elected Moti Ganz its new president and Ronnie Vanderlinden its new secretary general. Jeffrey Fischer, the outgoing IDMA president, was appointed Honorary President.

In a ceremony at the congress, WFDB named its former president, the late Moshe Schnitzer (1921-2007), as the first WFDB Diamantaire of the Year.

“The World Federation of Diamond Bourses is essentially a family of diamond traders, who need to communicate, liaise and plan common strategies on an ongoing basis, and not only on those occasions when we meet at World Diamond Congresses and Presidents Meetings,” said Paz in his concluding statement.

Article from the Rapaport Magazine - June 2008. To subscribe click here.