WDC will debate the revised FTC Guides!

WDC ready to discuss issues of vital relevance

(World Diamond Congress (WDC) is at latch to open up! The biannual meeting of the WFDB and the IDMA is being hosted by Bharat Diamond Bourse at Mumbai, India, during October 23 to 25.

In the context Ernie Blom, President, WFDB has expressed his thought just ahead of WDC to Nayan Jani, veteran gem-n-jewellery media player-India, Editor-JNI.)

Here are unedited questions & answers:

1: The 2018 World Diamond Congress (WDC), the biannual meeting of the WFDB and IDMA is being announced to take place in the month of October. And at the juncture, would you say where the Congress would focus most among several key points?

Blom: We will of course take a general look at the state of the global diamond industry. Specifically, we will discuss issues of vital relevance to diamantaires such as financing. This will have added significance due to the state of the Indian diamond market in the aftermath of the Nirav Modi affair and the decline in available finance which has resulted as mentioned by the GJEPC in a press release.

I am sure we will also want to debate the revised FTC Guides relating to the diamond, gemstone and jewellery sectors and the possibility of engaging with the FTC in a bid to make some changes, along with many other issues.

2: The host of WDC 2018, Bharat Diamond Bourse (BDB) has adopted the system & under that system, no Laboratory Grown Diamond (LGD) is allowed in the BDB boundaries. They say ‘zero tolerance.’ Here I am drawing your attention that when System is working why the WFDB Charter shifts onus on every member to act responsible & transparent with proper disclosure by following good practice principles in the context of LGD?

You know day by day LGD is improving its quality & challenges detecting technology, on the other hand you also know, there are unidentified fraudsters & greed in general may lead practicing undisclosed mixing! In this scenario, why you are putting onus on members for transparent operations & the most ethical moral rather than adopting a system?

Blom: The WFDB does not have one, single, stand as an organisation regarding trading in lab-grown diamonds. As you mention, the WFDB allows each of its 30 affiliated bourses to decide for itself what its position is. The BDB does not allow synthetics anywhere on its premises. On the other hand, the Israel Diamond Exchange forbids such stones only on its trading floor.

We believe this is a policy that makes sense and provides maximum flexibility for our members on their home ground. As for people carrying out illegal activities, we always press for them to be prosecuted to the full extent of the law in the country in which such activities are carried out.

3: How do you look at KYC Bank, the initiative commenced by the Gem & Jewellery Export Promotion Council to bring value to all members of the diamond pipeline?

Blom: We believe that this is a very worthwhile and important initiative. Banks are today looking for full transparency in deciding on whether to provide credit to diamond firms. The KYC initiative is important in showing diamantaires how they should provide all the relevant information to the banks in order to ensure they receive financing.

4: How do you look at Blockchain for WFDB to bring every Bourse diamond under the ambit of blockchain?

Blom: Blockchain is a technology that is clearly going to play an important role in many industries, including diamonds. It provides a tamper-proof system for tracking a diamond from the mine to the consumer. A wide range of industry bodies are involved in blockchain solutions from miners to labs to retailers. These include De Beers, the Antwerp World Diamond Centre, Rio Tinto Diamonds, the Gübelin Gem Lab and jewellery retailing giant Chow Tai Fook.

I believe that a well-thought out and fully developed version of blockchain can help the diamond industry enormously by boosting consumer confidence.

5: Always, banking & Financial institute wishes to fund any quality Assets, why diamond industry is not offering them & faces financial issues? What is the way-out to get easy finance for industry growth?

Blom: It has clearly not been easy to persuade the financial sector of our case. Unfortunately, we have seen several instances of banks withdrawing from the financing of the diamond and jewellery business. I believe that they wrongly see the diamond industry as high risk. The vast majority of diamond companies operate very prudently, ordering goods that they need and only when they need them.

I believe we need to persuade more actors in the financial sphere that providing credit to diamond companies is not high risk and that it is worthwhile for them. Indeed, we have seen new banks entering the diamond industry, and that is something that we obviously welcome.

6: There is a sentiment in general in African continent that they earn just poverty even after 100 years of mining diamonds & minerals. What is an accountability of diamond pipeline? Is any tangible initiative?

Blom: Clearly, there are still many miners, specifically in the artisanal sector, who are earning very low wages and we need to work hard to change that situation. But I would also stress that diamonds do good across Africa, providing a livelihood and putting food and drink on the table for miners and their families.

The WFDB supports the work of the Diamond Development Initiative and the Diamond Empowerment Fund in providing education and training for young people in diamond mining areas. In addition, we must also mention widespread sustainable development programmes run by mining firms to provide work and health facilities.

I do not believe that consumers are aware of the widespread good that diamonds do for people across the African continent. It is critical that we tell this story because diamonds literally save lives.