November 25th, 2008
By Daniel Horowitz.
My comment published this week by PolishedPrices was not targeting a specific company or group of companies.
Although it is public knowledge I, or the company IDH, filed a complaint against Supplier of Choice (SoC) at the European Commission a few years ago, this complaint was about compatibility of SoC with competition law, and not its efficiency as such.
Beyond SoC, my comment is a much broader reflection, a deep questioning of the behaviour of producers on all continents who have been insisting in since a decade their clients should demonstrate their ability to add value, and make out of this test a key to rough diamond supply.
The title of my comment, ‘Back to basics’, summarizes in a nutshell my viewpoint, namely that when producers sell rough diamonds to bona fide diamantaires, that they don’t need to go through the pain of figuring who has the best business model.
In the long run, the ones who have the ability to offer the best price are - by definition - also the most efficient ones.
I believe major producers may well be giants as far as mining is concerned, but they have no common sense and are intellectual dwarfs when it comes down to understanding rough diamond markets.