As mentioned earlier, it is purely by first disciplining our own selves that we can ensure our industry’s survival and we can do so in a long-sustaining and successful manner.
Planned or intentional bankruptcies are becoming common in the diamond industry due to a lack of fear of the consequences. Your thoughts on this controversial trend.
Yes, I agree with your comment. In the past, people would think long and hard before taking credit lines from the banks, and had the feeling of responsibility to ensure there is no default. It was a matter of one’s self-respect, honour and a fear of losing one’s hard-earned reputation. Gradually however, many people seem to have lost this fear. It is extremely worrisome now to see that despite having more than sufficient personal wealth, keeping or using bank’s money is becoming a habit, and people don’t see any danger in it. Not only this, but wilful defaulters are able to get away without any problems for their evasions on the huge sums of money they owe. This makes me wonder why the banks require so many forms, deposits, signatures when approving bank facilities.... What for? As many who have taken large loan facilities have apparently been able to walk away with minimal damage to their businesses, despite defaulting on their obligations. Then why do banks ask for all that information? Is it a mere formality, or does it really mean something?
Is the diamond pipeline still choked with excessive loose stone inventory even now?
Yes, this is indeed the situation even now. But it is a cycle that needs to be addressed as every year for the past few years we have been here at this time.
What changes do you foresee in the next 5 years for the diamond industry?
In my opinion, there are more people than there is work at each and every stage of the industry pipeline. Slowly, they will be constrained to exit the business, unless they can come up with unique and engaging ways of genuinely adding value.