Secondary Market Supply Issues at Annual WFDB, DTC Meeting

The Diamond Trading Company (DTC) and the World Federation of Diamond Bourses (WFDB) met late last month to discuss industry issues and concerns, including the future rough diamond supplies to the secondary market in light of restructuring plans for Diamdel. WFDB President Ernie Blom and DTC Managing Director Varda Shine led the meeting in London.

The following items were agreed upon:

• The WFDB and the DTC agreed to create an annual plan for road shows in cutting centers. 
• The DTC and the De Beers Group announced that they wish to continue their support of the secondary market. However, because Diamdel has entered into a consultation process with employees regarding the possible restructuring of its operations around the world, De Beers and the DTC were unable to comment further. 
• The DTC and the WFDB are fully aligned in their goal to evidence ethical accountability in the diamond industry. The DTC announced its support of the WFDB’s goal to create the WFDB mark as a sign of integrity, backed by a system of auditing, monitoring and enforcement.
• Following an earlier meeting with the WFDB, the DTC noted that participants at every level of the diamond pipeline, wherever they bring added value, and regardless of their business model, are able apply for a 2008 Sightholders contract.
• The DTC recognized the potential value to Sightholders in becoming members of one of the 26 affiliated WFDB bourses around the world, if they are not already members.

Over the years, a significant part of the discussions between the DTC and the WFDB has centered on rough diamond supply to small and medium manufacturers. De Beers supported this secondary market with the supply of around $500 million worth of goods via Diamdel. The changes at Diamdel have raised concerns over this supply.

The consultation process with Diamdel employees will start next week.