President`s Year End Message 2014
It is that time of year where we look back and reflect on the past year, to see where it is we are and where we plan to see ourselves going forward into the New Year.
We had a productive year I thought namely as were accepted into the fold of the World Federation of Diamond Bourses, being the 29th Bourse to be bestowed such an honour. We held our second election since our inception and I would like to take this opportunity to thank those members who voted for me and trusting in me to help lead you into the next two years.
As you are all aware our industry continues to face challenges from all directions. Without sounding too repetitive these challenges bring about opportunities and I believe that we will learn to live with our changing landscape and adapt to our new reality.
I would like to thank my fellow board members for all their hard work this year. Leila, a special thank you for all your countless hours enabling our Bourse to continue to run seamlessly.
To all our members near and far I as well as the board of directors including Leila would like to wish you a Happy Holiday and everything of the best for the New Year.
David Gavin, President
DIAMOND BOURSE OF CANADA
President’s Year End Message December 2013
This past year has been an exciting one for the Diamond Bourse of Canada with trading power growing; the launch of an online trading platform for the sourcing and purchase of loose diamonds and the application for membership in the World Federation of Diamond Bourses. Membership in the World Federation will commence in June 2014.
Since its inception, the Diamond Bourse of Canada has raised the profile of the diamond industry nationally and internationally. As well we have been able to establish ties with the federal and provincial governments. This past year, alone, I was part of a business delegation with Prime Minister Stephen Harper to India to foster new business. I also travelled with the executive directors of the Bourse to the Northwest Territories to meet with government officials to discuss future business opportunities. As well we’ve joined the Jewellers Board of Trade – reinforcing our commitment to ethical standards.
As we approach 2014 there is plenty of room for optimism and growth in the coming year. But there are also some serious challenges ahead. The recovery from the 2008 recession has failed to materialize as some had expected. This has left the banking industry skittish and cautious when it comes to extending credit to our industry and this reluctance is affecting business.
Also of some concern to everyone in the industry is the growing use of synthetic diamonds in jewellery manufacturing and production. According to a report on the website Kitco.com, a decade old process — known as CVD or Chemical Vapour Deposition – has allowed the production of better quality diamonds. The process allows for the creation of diamonds that are clean, colourless and over one carat. And while synthetic diamonds will likely not replace the real thing, they are a cause for concern, especially when it comes to pricing. Florida-based Gemesis Corporation created a 1.29carat stone earlier this year, which was listed for sale for $7,633 — 38 per cent less than the natural equivalent found on the market at the time which was going for approximately $10,500.
Also affecting the economic forecasts of the industry in the coming year is the changing appeal of diamond jewellery worldwide due to economic restraints and the financial strains many consumers are still experiencing. And with forecasts for growth in Canada and in the U.S. still modest, this strain on the pocketbooks of some consumers will continue.
Another important factor to take into account is the lack of generic advertising for diamonds overall. In the fall of 2011 De Beers – the diamond giant, which had spent millions advertising generic diamonds worldwide to the benefit of many smaller producers, wholesalers and retailers – decided to stop advertising generically and concentrate on its brand. Since then no one has stepped in to pick up the slack and the loss of advertising for diamonds has hurt sales and the industry overall, many analysts believe.
But I believe that through the DBC and working together we can face these challenges head on and bring vibrancy to the Canadian diamond industry. On behalf of the DBC and its board I would like to extend New Year’s greetings to all our members. I know that together we can meet the challenges ahead in 2014.
President of the Diamond Bourse of Canada