ANTWERP DIAMOND GUILD [ADG]
My ambition is personally motivated but it can also have a significant impact on the industry as a whole, creating new opportunities throughout the entire supply chain.
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- ANTWERP DIAMOND GUILD [ADG]
Quantify the craftmanship of artistic diamonds by a new valuation method based on the light performance of stones
Innovation challenge
According to Alexander Dayekh, the current market mechanisms for pricing, especially in the artistic market, lack a number of crucial factors. As a result, the price of diamonds is currently determined based on a complex interaction between specific parameters, as defined under the Rapaport Specifications, for example. None of those pricing systems take artistic added value into account. Valuations of the same stone do not produce the same exact result at different jewellers.
This premise ensures that financial markets do not see diamonds as a stable investment unlike gold or silver. Banks do not work with arbitrary valuations, meaning they do not consider diamonds as trading assets. A more transparent and two-sided valuation based on the stone’s objective properties could mitigate this.
Antwerp can better protect its market position for artistic diamond shapes against low-cost countries. It is therefore crucial that the craftsmanship of these artistic diamonds is correctly valued.
Today traders find it difficult to determine the exact premium for artistic diamonds.
Solution developed
ADG wanted to quantify this artistic added value, by introducing a new valuation method based on the light performance of the stones and complementary to the traditional 4 Cs.
Throughout history, diamond light performance has always been a valuation criterion. Until recently, the technology to objectively measure this was unavailable. Although bodies such as Gemex already issue light performance certificates, these are based on a relative scale, which is defined differently per lab. As such, this scale cannot yet be applied to pricing mechanisms.
To this end, ADG developed a calibrated numerical scale with Gemex, based on underlying measurements. Each grade on the scale can then be converted into a certain premium on top of the diamond index.
How did the coaching enable to accelerate?
Alexander Dayekh: “During the programme, they were very discreet and provided excellent coaching. They offered assistance for drawing up a detailed pitch. I tend to give a lot of information, but they helped me to summarise it, to reduce it to the essentials, even though we target a very wide audience. Being able to rely on a second opinion about the potential of this innovation proved very valuable to us.”
