Diamond selling processes are outdated and hurting producers, trader says

Core Insights - The diamond market is facing a significant downturn due to global economic uncertainty and the rise of lab-grown stones, impacting producer revenues and leading to layoffs in mining companies [2][3] - The current tender and auction system for selling diamonds is deemed inefficient and opaque, likened to a casino, which exacerbates the crisis faced by the industry [3] - A proposed revamp of the sales process could allow producers to earn more by linking revenues to the polished value of diamonds rather than relying on opaque auction sales [4][5] Industry Challenges - The diamond market is experiencing its deepest crisis in history, with producers like Botswana suffering from reduced revenues [2][3] - Miners such as Burgundy and Lesotho's Letseng mine have had to lay off workers due to the downturn [2] Proposed Solutions - Oded Mansori of HB Antwerp suggests eliminating inefficiencies in the diamond sales process to help producers survive the price slump [1][3] - The profit-sharing model employed by HB Antwerp, which bases purchases on the estimated polished value of diamonds, could increase producer revenues by up to 40% [4][5] - HB Antwerp accounted for 72% of Lucara Diamond Corp's $74 million diamond revenue in the first half of the year, indicating the effectiveness of this model [5]