Kobi Koren

ISDMA PRESIDENT CALLS FOR TRANSPARENCY IN THE DIAMOND INDUSTRY

Ahead of thePresidents’ Meeting of the World Federation of Diamond Bourses (WFDB) and International Diamond Manufacturers Association (IDMA) in Tel Aviv later this month (June 14-16), we sat down with Kobi Koren, President of the Israel Diamond Manufacturers Association (IsDMA), to discuss the main issues that will take center stage at the 2-day gathering.

 

Which issues will you focus on in the upcoming Presidents’ Meeting?
“First, I’d like to point out that had the presidents’ Meeting not been scheduled, we would have had to summon all the presidents to discuss some critical issues. We are at a crossroads, and we need to make the right decisions in order to push the industry forward.

The main issues at hand are the supply of rough diamonds, synthetic diamonds, polished prices, financing, color grading in gemological labs, transparency and more. These are issues we’ve dealt with before, but each has undergone changes and developments that need to be addressed”.

 

Rough Diamonds
credit:IDI

Which are the most relevant issues for the Israeli diamond industry?
“I feel that transparency is an issue that keeps turning up, and it is relevant for both the Israeli and international diamond community. Take De Beers, for example, which has toughened the rules for sightholders, including financial reports and account balancing. And De Beers is not the only rough supplier which does this. Jewelry retail chains also demand transparency, as well as the banks and Israeli tax authorities. The demand for transparency is dominant and crucial for corporations in the 21st century.

 

 

Diamond color grading is another salient issue. EGL International has a problem in that respect. Lately, disparities were exposed between three color grades, which brought about the closing of EGL in Israel and a serious scrutiny within EGL. In addition, GIA has lately issued an alert that traders have distributed treated polished diamonds, I’ll call that a temporary treatment for now since the investigation into the matter is ongoing. The grading reports are still circulating in the market and the problem has not been solved. Our job is to make clear-cut decisions on this issue, and maybe take sanctions against those who may have broken the rules”.

 

Rough Diamond Tester
credit:IDI

Synthetic diamonds present a big challenge for the diamond industry. What do you think should be done?
“The issue of synthetic diamonds is a crucial one in the global diamond industry. We must demand that a clear distinction be made between natural diamonds, and synthetic diamonds made in factories. These distinctions must be made in all stages of marketing: from grading reports in gemological labs to branding. We must make sure that consumers understand that these are two distinct products”.

 

Synthetic diamonds
credit:GCI

Are there any other issues you would like to see addressed in the Presidents’ Meeting?
“I would like us to discuss financing. We must find ways to attract money to the industry, and not just through banks. We believe in the strength of the diamond industry, and we must think of creative ways to attract new investors to it”.
By: Iris Hortman

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