Ernie Blom “There are four major problems facing the diamond industry”

Ernie Blom was elected on June 27, 2006, as president of the World Federation of Diamond Bourse (WFDB) for a two-year term. In the following interview with Diamonds and Gold of Russia, he shares his views on main issues affecting the global diamond industry and suggests some possible solutions.

D&GR: What is your opinion about the current situation in the world diamond business: is polished diamond industry in crisis now or is it getting over it? What contributes to these processes?

EB: There are a few problems facing the diamond industry at present namely a lack of liquidity; a lack of profits, extended credit lines, and a lack of suitable rough in certain categories. The first three parts are major problem areas and hopefully the industry will realize this and rectify them, especially the credit lines which will address the first point. Hopefully the rough shortages will be overcome with the new mines coming on stream.

D&GR: What measures does the WFDB undertake to prevent the crisis situation in production and consumption of polished diamonds?

EB: To maintain the sale of polished diamonds will necessitate encouraging the customer to buy diamond jewelry and also to maintain their confidence.

DGR&G: What measures should diamantaires undertake to increase sales of diamond jewelry? Are there any examples of such successful work by any companies or countries producing polished diamonds?

EB: To maintain and increase sales to previous points need to be promoted as well as making sure that the end user wants to buy diamond jewelry. Many brands have been launched as well as advertising campaigns by individual companies and producing countries and the World Federation of Diamond Bourses is launching its own brand the WFDB Mark.

D&G: DGR: What is the place and the role of Russia in the WFDB? Are there any prospects of cooperation?

EB: Russia currently has two Bourses which are members, the Diamond Chamber of Russia and the Moscow Diamond Bourse. They are both valued members. In fact, Mr. Sergey Oulin of the Diamond Chamber of Russia is a member of the World Federation of Diamond Bourses Executive.

DGR: D&G: Magazines specialized in the diamond industry are distributed in many diamond producing countries and in big diamond centers. Do you not think that it is time to join forces with publishers of such magazines in some organization under the aegis of the WFDB to contribute to the better coverage of issues affecting the diamond sector?

EB: I think that the proposal has some merits, we have as the World Federation of Diamond Bourses our own newsletter and at the end of the day, each magazine is a business endeavor for profits.

DGR: DGR: What would you wish for the readers of our magazine, who work in the diamond business?

EB: I believe the main reason of a magazine is to inform its readers of updated news on an industry, in our case the diamond industry. To make them aware of trends, technology and the other related items so that they can better understand the business.

DGR: DGR:How can the journalists from different countries obtain accreditation for the events held under the WFDB aegis?

EB: To obtain accreditation, particularly for the Presidents Meeting, kindly contact Michael Vaughan, our Secretary General. Our contact details are available at www.worldfed.com.