Israel Diamond exchange faces crisis as exports plummet in 2024 

 
Israel’s net exports of rough diamonds fell by 6 percent in the first half of 2024 compared to the same period in 2023 

Israel: The Israel Diamond Exchange, the largest of its kind globally, is grappling with a significant decline in exports and membership in 2024, primarily attributed to the ongoing war in Gaza and a broader global market downturn. According to a report by Ynet news, the exchange is experiencing its first annual decrease in new members, with only 30 joining in the past year compared to an average of 200 in more prosperous times. 

Nissim Zuaretz, the president of the Israel Diamond Exchange, highlighted the concerning trend, noting that for the first time, the number of retirees from the exchange has outpaced the number of new members. Currently, the exchange has approximately 3,100 members, solidifying Israel’s position as the fifth largest global exporter of both cut and uncut diamonds. 

Data reveals that Israel’s net exports of rough diamonds fell by 6 percent in the first half of 2024 compared to the same period in 2023, while polished diamond exports plummeted by 33 percent. July 2024 saw exports decline by nearly 50 percent year-over-year. 

Former exchange president Boaz Moldawsky previously identified both the ongoing conflict and a global economic slowdown, which began before the escalation of hostilities on October 7, as contributing factors to the decline. He noted that the Israeli diamond market was “completely paralyzed” immediately following the outbreak of war, although it eventually resumed normal operations. 

However, the continuation of the conflict has sowed inhibition among people who were planning for a trip to Isreal, leading to the cancellation of key events such as the annual International Diamond Week, originally scheduled for early April. 

According to a prominent international jewellery media firm, the downturn is largely driven by decreased sales to major markets like the U.S. and China, as well as a significant drop in diamond prices, which fell by about 20 percent in 2023 due to waning consumer demand. Moldawsky estimated that 80 percent of the current challenges facing the trade stem from global market conditions, with only 20 percent attributed to the conflict in Gaza. 
 
Retail Jeweller ME News