With in excess of 1,000 people – both foreign buyers and Israeli diamond company representatives – on the floor of the trading hall, Sahar welcomed Kaufman and the delegation of buyers from the United States.
“Reuven Kaufman has become a partner of mine in the way we are leading the diamond industry in Israel and New York,” said Sahar. “What started out as a sort of joke at a meeting in Dubai last October about how two presidents can create a win-win situation has become reality.
“What we are seeing is history. I believe we will have these events every year in Israel and New York, and possibly other countries as well.”
Sahar said the IDE was looking into the possibility of expanding on the success of the show due to the evident interest shown by Israeli and foreign diamond companies. One possibility is to hold the event in Israel twice a year, and even a joint US-Israel Diamond Week in China.
Meanwhile, Kaufman said that having traveled to many countries and given speeches across the world, he also prepared one for the opening ceremony at the Israel Diamond Exchange. “But when I got here and saw so many old friends, many of whom I did business with their fathers, I realized straight away that that I could not give a speech from a piece of paper. To family, you speak from the heart not from a piece of paper,” he said to a rousing reception.
“We started this idea of a trading week in New York last December and we are continuing it here. Just look around and see how successful it is. The goal is not just this week in Israel or a week in New York, but to work together to show the U.S. and Israeli flags around the world and show that the diamond industry is still strong.
In addition to the 65 overseas buyers who registered beforehand for the event, a further 91 have also registered as of Monday morning, making a total of 154 so far.
The Israeli companies are offering more than $1 billion of polished diamonds for sale.
The largest number of buyers is from the United States, while there are also buyers from United Kingdom, Belgium, South Africa, India, Hong Kong, Turkey, Japan, China, Spain, Canada, Russia and Switzerland.
The second day of the event was concluded by Rapaport Group publisher, Martin Rapaport, who gave a comprehensive review of the state of the global diamond markets, and how Israel and the United States can strengthen their positions.
He emphasized the growing demand in general for diamonds compared with the falling supply, and the increasing role of India and China as diamond consumers due to their expanding middle classes. Meanwhile, the United States and Europe were like “old people – they are well off and they already have diamonds, while Hong Kong and China and India are healthy and growing markets”.
He said the price of rough was higher than that of polished due to easy credit facilities in India, the phenomenon of round-tripping, and irresponsible banks financing rough purchases. He warned diamantaires not to become hooked on bank loans since it was clear that interest rates, particularly in Europe, will eventually start rising.
“Expect bank liquidity to tighten up; expect volatile demand and prices; and expect rough diamond prices to continue being manipulated,” he said. “Expect higher interest rates and tight money, don’t manufacture unprofitable rough, and support small businesses because they can bring about change, not large fat companies,” were his parting words.
A bustling IDE trading floor on the second day of the U.S. / International Diamond Week.