This week, exactly eight years ago, I had the privilege of publishing the first Tacy’s Memo in this space on IDEX Online. That first contribution was titled “Diamond Merchants Going Upstream.” Since then, the memo has touched on a myriad of strident, problematic and controversial issues, often in a thought-provoking way. Throughout the years, I have written 411 such weekly commentaries. To me, it has also been a constant struggle to meet the rather inhuman Thursday afternoon deadline.

From today, I am taking a much-needed respite. I am taking a sabbatical from the weekly column. My time will mostly be devoted to book writing and research, while continuing my efforts to contribute to the industry in various ways. No, I’m not disappearing; my views will still appear on a weekly basis in the Diamond Intelligence Briefs and on diamondintelligence.com.

From my perspective, IDEX Online and its Chairman Udi Cohen, have shown tremendous courage by supporting me to the hilt over the years, especially when my column took on the challenge of exposing controversial issues such as the GIA Certifigate scandal or financial irregularities in industry organizations.

IDEX Online gracefully accepted some repercussions these exposés had on its advertising revenues and ungrudgingly paid lawyers’ fees every time some mentioned party felt aggrieved. In such potential libel or defamation situations, a journalist’s only defense is that whatever was written was true and reported in good faith. IDEX Online never failed me – and I hope the company feels likewise.

A Tumultuous Decade

The past eight years have been very tumultuous for the diamond business, especially on the rough diamond supply side, where producers continued to experiment on new marketing mechanisms. Both Supplier of Choice and the Kimberley Process became entrenched in our lives.

Legal compliance issues, corporate and social responsibility strategies, Basel II banking-capital-adequacy policies and NGOs all became integral parts of our business, providing topics for many articles. Undoubtedly, the industry evolved from an opaque, “closed” business to one of unprecedented accountability and transparency on all levels. That welcomed transformation is continuing.

Looking ahead, we see a buoyant diamond market where rising prices are fully premised on the expected rough shortages that may lie ahead. While the total world mining output in 2009 was about 125 million carats, down from 165 million carats in 2008, supplies in the future will stabilize at around 140 million carats before tapering off. This generally accepted premise ignores the industry’s greatest future challenge called Marange.

In the 67 thousand hectares in Zimbabwe identified as having diamond potential, only a few thousand hectares are currently being mined by two companies generally using state-of-the-art technologies and respecting best practices. These companies alone can produce some 40-50 million carats a year – and this is without even mentioning other producers that may be drawn to the area or the output of illicit diggers.

Though over half of the Zimbabwe's production may not be cuttable at all, and the remainder is composed of mostly Indian goods, future market and price stability will greatly depend on how this exceedingly problematic country will integrate in the global diamond scene.

I have seen some estimates that by 2015, Zimbabwe will be the world’s largest producer by volume and could represent 25 percent of output by value. This requires responsible stewardship in the interest of all.

Changing of the Guards

The publishing world is no different from any other business. Rejuvenation takes place constantly and the world belongs to younger people. Few may remember the Mazal U’Bracha Diamond Magazine, which I founded in 1985 and which still is a vibrant and growing publication after it was sold to IDEX Online and rebranded as IDEX Magazine. To see this continuity is heartwarming.

IDEX Online is fortunate to have prepared a new breed of highly skilled professional trade journalists, one of whom, Editor in Chief Edahn Golan, deserves mentioning as being the best among equals. In a short time, Edahn has become a brand unto himself and I hope that he will inherit my weekly spot. He deserves it. 

As a columnist, I have always been guided by my conviction that one should never take one’s audience for granted – not even for a single day. Every week, one has to earn the right to provoke, to stimulate and to inform readers who give their time and attention. To my readers, I can only express gratitude. I promise we’ll meet again.

Forty years ago, when I earned my undergraduate degree in journalism at the Fresno State University, I had a wise mentor, the late Dr. Bernie Shepherd, who said to me, “Chaim, never forget, if everyone likes every word you write, know that your writing stinks.” It may not be a nice statement, but it turns out to be true.

Throughout the last eight years, I know that my memos may have inadvertently offended, upset or even pained individuals or organizations. That may have been unavoidable to make a point or plead for a case that I believed was, ultimately, for the benefit of the industry. Though I have never traded a diamond in my life, I feel deeply passionate about the industry and what I do. I beg indulgence from those whom I may have occasionally made uncomfortable.

No, this is not a eulogy – though it is an enticing thought to write one’s own. For IDEX Online, the time has come to pass this column over to others who will continue the tradition and put their own stamp and character on the memo. To IDEX Online and all my readers – thanks ever so much and, lest I forget, have a nice weekend.