Perspectives

RAPAPORT… The actions of those holding key positions in the large number of organizations and associations that represent the spectrum of stakeholders in our industry have always been of interest to me. The recent election of 33-year-old David Rosenberg as president of the Diamond Bourse of Southeast United States, making him the youngest president of a diamond bourse, leads me to consider the role our generation will play in the political environment of our industry. Roaming any of the diamond dealer clubs or bourses around the world, one sees a lack of participation by younger individuals. This does not stem from a lack of interest, but rather a focused outlook on a true cost-benefit analysis. With increased competition, an ever global environment and lower margins, today’s diamond business is far different from the past.

This thought was brought home to me at the World Federation of Diamond Bourses (WFDB) annual Presidents Meeting held in Amsterdam this June. I found myself wondering where Lev Leviev was. While not scheduled to attend the Amsterdam venue, he had been listed as a speaker at the annual World Diamond Council (WDC) meeting that took place earlier this year, and had not been at that gathering, either. I found myself missing his often-blunt views on the performance and state of our industry.

Leviev’s latest purchases of real estate in New York, combined with his company’s other assets, seem to put the size of our industry in perspective. While speaking of the rough markets some time ago, Leviev made reference to the value of his New York real estate being higher than the annual turnover of rough diamonds supplied to market. Keeping this in mind, the question is whether the golden rule of “he who has the gold, rules” should be taken into consideration.

Many business entities and individuals seem to be oblivious to the political aspects of our industry as they pursue new and innovative business ventures that may very well transform the way we do business in the future. While issues such as the terminology of synthetic diamonds and social responsibility must be debated and dealt with, the question of where we focus our energies must be considered as well. People often become preoccupied with matters that keep them from pursuing their dreams and reaching the goals they initially set out to achieve.

We must deal with the various issues concerning our industry in an open and transparent manner. Money is a key factor in this equation and an objective we all aspire to attain. Initiatives such as Leviev’s proposition to the Namibian government, in which he would receive rough diamonds by providing jobs to a largely unemployed population, are admirable and unique. He was able to utilize his capital to alter the way in which a producing country allocated and benefited from its natural resources. While the motives of such a scenario might raise doubt, those who believe that business must be driven by altruism are mistaken.

So while our industry’s leaders convene to further discuss the items on their agenda and praise each other’s contributions, drastic changes are occurring on multiple levels. Blue Nile’s sales are rapidly increasing, the commoditization of diamonds is coming closer than ever to fruition and policies in African countries are being altered. Concerns will be voiced as change is introduced and the comfort zone for many within our industry is threatened. One must note that the only thing constant in life is change.

Diversification schemes have also become rampant among members of the trade. With the rupee rising 14 percent over the past year, an understanding of the financial markets in relation to one’s diamond business may prove to be extremely beneficial. Leviev did not make an appearance at the meetings I attended because he is busy making money. Politics are important, but not the secret to success.

If you would like to comment on this column, please email: perspectives@diamonds.net.