Diamonds: transparency, responsibility and sustainability. Marcello Manna
Transparency, responsibility and sustainability: the sound of these words plays during every meeting of the associations of the diamond market operators both at the production and commercial level: rethinking our activities to face the new challenges of the market; reduced profits; the threat of synthetic diamonds; the declared war of banks against diamond.
The purposes are excellent, but how to do practically?
First of all, the fundamental principles are: a clear corporate structure, transparent accounting, control over the third parties in the rough diamonds process.
In any case, it is essential, in addition to this demand for clearing, that operators must consider the sense of sustainability of the business that can not go on with such reduced margins and lack of new investors: we need a revolution!
The handshake and the exclamation “Mazal!” will no longer be enough to guarantee the existence of our industry. The rules of the game have changed and consumers are completely different from those who had satisfied with the minimal effort.
If it requires the most important companies to comply with international accounting standards, on the other hand it is clear that without new marketing tools, new financial resources and new skilled operators prepared to the new challenges of the market…the match will be difficult to win!
Without mentioning the accusations against the diamonds used to fuel conflicts, about the violations of workers rights, the financing of terrorism and money laundering.
From this point of view we have to say that there is a difference in regulation and compliance with the main markets compared to what happens in other markets. If, for example, there is one of the strictest anti-money laundering laws in the world in the Antwerp Stock Exchange – where every operator is obliged to know his client by demonstrating to implement a formal formal process of acquisition of information (KYC – Know Your Customer) – elsewhere the same procedures are lighter.
One of the consequences of this lack of self-regulation among diamond trading places is an advantage for synthetic diamonds storytelling. With their “sustainable and ecological” slogan, the industry that produces lab-grown diamonds tries to hit the Millenials on the issues that are most dear to them: transparency, responsibility and sustainability to biuld an independent and separate market from the “natural” one.