Earlier this week, the Antwerp World Diamond Council launched an ambitious project, the “Antwerp Diamond Roadshow.” They are taking 15 diamond companies on a ten-day tour of five cities in China. It premiered Monday in Beijing, in the presence of Belgium's Crown Prince HRH Prince Philippe, and included the signing of a cooperative framework agreement with ICBC, one of the world's largest banks.

It was fascinating to witness this. For starters, AWDC's is helping bring additional financing to Antwerp's 1,800+ diamond firms. This is no small feat at a time when new money is needed, and the financial markets are shaky at best.

Bankers we spoke with in the past few days provided some surprising explanations to the recent liquidity issues in the diamond market. One stated reason is a lack of confidence by consumers who fear that a bank may collapse, taking their savings in the process. Because of this fear, deposits into private banking saving accounts have declined, leaving banks with less money to lend to businesses.

This is not the only reason. For a diamond firm to receive credit from a bank's funds earmarked for the diamond trade, firms have to meet higher borrowing standards than before and some don't clear the bar anymore.

To add a further hardship, firms in India are increasingly finding themselves forced to borrow in Indian rupee instead of the U.S. dollar. Paired with the weakening rupee against the dollar, one banker estimated that the borrowing costs increased by about 20 percent. Other reasons exist, such as the impact of rough prices, labor costs and the rising level of owners' investment back in their own business. 

These are painful realities, and therefore not surprising that at least one bank is now seeing a delay in payments from diamantaires since the start of October.

A new source of funds, with a client base far less affected by the European and U.S. economies, one that had a jump in earnings in 2009, is just what diamantaires are asking for.

The 15 firms participating in the roadshow brought more than $200 million worth of diamonds with them. ICBC invited its largest clients to meet the traders and view the diamonds on display, mostly 2+ carats and a large number of fancy color and shape goods – a powerful display of what Antwerp has to offer. Some traders expressed disappointment, saying the chance that someone will buy a large diamond from them is small. 

However, the opportunities are there. The traders are not only meeting deep-pocket investors or leaving a good impression for future business. It's an opportunity for first-hand learning about the Chinese diamond consumer, learn their mentality, identify the hurdles that need to be overcome to make the sale (for example, a lack of diamond knowledge basics). 

AWDC is helping these companies enter China. Like the Prince, they too have an entourage on this trip: shipping company Malca-Amit is following them everywhere, joined by booth builders, buses, two English-Chinese translators assigned to each booth and of course, the AWDC’s support staff. 

Why is AWDC investing so much effort into this? As the umbrella organization of Antwerp's diamond sector, and beyond what is stated earlier, they know that they need to protect their existence by constantly fighting for market share.

Belgium, like Israel, lost its standing as a polishing center. The average age of laborers in these centers is rising and there is no fresh blood coming in. If nothing changes, whatever remains of the existing polishing factories will disappear. Business acumen and history only go so far, and it is not enough to prevent business from fleeing to India, China and Botswana.

Antwerp is therefore taking the initiative. There are two other centers that need to step up their efforts, New York and Ramat Gan. The first needs to urgently get organized. The second took a number of serious marketing steps to protect itself – bringing in the GIA, opening a liaison office in Hong Kong and more. However, Antwerp upped the ante and Ramat Gan will need to follow suit.

A possible deal in Europe for saving Greece, Italy and Portugal is good news, but not enough for celebration. Individuals and centers alike need to think long-term, not just a few months ahead. Antwerp is doing so, as is the Indian center led by the GJEPC and Botswana with its own rough and manufacturing center plans.

In an always-dynamic world, survival requires fighting for your share. Those that are proactive stand a better chance than those that don't. 

May you have a bright Diwali celebration and a peaceful weekend.