Dr. Yuan talks about diamonds: nurturing the sales situation of diamond rough and how to respond


In recent months, many domestic and foreign guests have contacted to seek to cultivate the supply of diamond rough, especially the small rough of high temperature and high pressure. China supplies almost 95% of the world's high-temperature and high-pressure cultivated diamond blanks. Recently, the global market is out of stock. No matter how big or small, high-quality diamonds are basically out of stock, even if the price is high. When selling finished diamonds after cutting, grinding and certification, there is no profit or loss. The price of medium and low quality blanks is acceptable, but all major suppliers are out of stock.

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Where should the final market price of cultivated diamonds be? It is still uncertain. Ten years ago, when CVD colorless cultivated diamonds were supplied, the retail price was 60-80% of natural diamonds. Over the past ten years, it has gradually dropped to 20-30% now. The retail price of cultivated diamonds Lightbox by De Beers US$800/carat is about 5-15% of natural diamonds. However, cultivated diamonds with larger Lightbox particles have been out of stock. Now other suppliers ignore De Beers, but in the future, when De Beers can really supply large quantities, his price policy must be concerned.

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The recent situation shown by the supply of high-temperature and high-pressure blanks is caused by human factors, which first caused the market to be out of stock, and then increase the price after a period of time. China's high temperature and high pressure to cultivate diamonds, the price of rough should be decided by the Chinese industry, now is the domestic industry in the development of diamond rough price.

Look at the goods

China is the largest producer of high-temperature and high-pressure synthetic diamonds. In recent years, a large number of colorless diamonds for jewelry have been grown by using high-temperature and high-pressure six-sided top presses. Now the technology, cost and market have matured. In China, CVD will also be a major producer in the future. Over the past few years, the production and sales of various conditions of instability, so that the cultivation of diamond products production and marketing has been a great trouble, the future, whether in the good or bad times, regardless of the global natural disasters, man-made disasters, wars, economic downturn, etc., making the diamond market change. We have set up a unified sales organization to cultivate diamond rough, which can get timely information feedback and reflect it to all participating members. It can provide a long-term and stable platform for producers and buyers to conduct reasonable transactions. Like the natural diamond inspection fair, it can maintain stability for decades or even a hundred years.

Supply members: manufacturers of cultivated diamonds, the cultivated diamond products produced must be white diamonds acceptable to the market.

Purchasing members: need to buy diamond rough cutting factories, wholesalers, chain jewelry stores, etc.

The head office is located in Zhengzhou, and the goods-watching organization can be located in many places at home and abroad, such as Guangzhou, Shenzhen and Dubai.

The operation of the goods-watching association company imitates the De Beers model as follows: the goods-watching association will be held ten times a year, once every five weeks, and once a week each time. The purchasing members need to report the types, specifications and quantities of goods required for the next five goods-watching meetings to the goods-watching association company six months in advance. The company can distribute the goods to the supplying members for timely production. The goods-watching association company will be sorted, classified and subcontracted according to the members one week, the price committee has determined the price in advance and calculated a reasonable total price.

Supply members to accept orders mode, long-term stable, accurate production of market requirements of the specifications and quantity, purchasing members can be stable long-term to buy the required type and quantity.

When the purchasing members encounter market changes, they must promptly notify the inspection company to increase or decrease the specifications and quantity of the goods purchased next time, and the inspection company shall notify the supplying members as soon as possible to change the order content.

Depending on the need, the goods will trade products can be increased, such as: finished diamonds, colored diamonds, industrial use diamond materials.

With De Beers's 100-year history of using the look-around to sell natural diamond rough, it can be proved that the look-around is a reasonable, stable, positive and effective model for the price and market of the natural diamond industry. Their supplier is a single De Beers itself, and the supplier is extremely simple. In recent decades, there have been Alrosa Alrosa, Rio Tinto and several smaller companies, but everyone has a tacit understanding with each other and adjusts the price and supply simultaneously. There are many manufacturers of diamonds, large and small. In the future, when organizing diamond rough inspection meetings, there should be several inspection meetings running at the same time. As long as everyone has a tacit understanding, the price and supply will be adjusted simultaneously, and the effect will be the same.

What should be the size of the goods-watching meeting?

Take the existing natural diamond inspection meetings as an example. The total carats of natural diamond rough are about 0.1 billion carats each year, with a total of about 10 inspection meetings. Therefore, each inspection meeting sells 10 million carats on average each year. The total value of rough natural diamonds is about $10 billion per year, so the average sales per year are $1 billion per year.

The annual output of diamond rough cultivation is now about 15 million carats, with a total price of about US $1.5 billion. If there are three inspection meetings, each inspection meeting will sell about 5 million carats, worth about US $0.5 billion. After the future expansion of the industry, the number and scale of the goods will gradually expand.

The rules for De Beers to host the goods-watching fair used to be very strict. The goods-watching members had only two choices: yes or no, once in three years, it was acceptable not to buy, the second time not to buy, and the membership was canceled. Each time, the goods could not be picked up and negotiated. De Beers would not give enough of the goods required by the members, and would also force some of the goods they could not sell to the members. There have been many changes in the past ten years. Members can pick out some unwanted goods and return them. They can talk about some prices. They can also buy less goods once and buy more next time, De Beers and Alrosa are one step closer to optimizing their supply according to customer classification.

Cultivated diamonds can refer to the model of the natural diamond inspection meeting for the sale of cultivated diamonds, and gradually adjust the details of the method so that both supply and demand can conveniently and effectively complete the transaction.

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