More diamonds should be made available to the local cutting and polishing industry so that it adds greater value to the South African economy, says diamond and tanzanite jewellery designer and manufacturer Shimansky CEO Yair Shimansky.
He notes that “there is still a lot of diamond mining and trading taking place”, but that most of the diamonds are not processed locally.
“Five years ago, about 20 000 people were employed in the polishing and cutting sector of the diamond industry in South Africa. Currently, this figure is only about 2 000,” Shimansky points out.
He says South Africa still produces high-quality diamonds and, as the demand for diamonds in countries such as India and Asia is increasing, “there is definitely a gap between supply and demand”. This will lead to diamonds increasing in value, providing South Africa with a significant opportunity to grow its diamond industry.
“We have confidence in the industry and will continue to invest in diamonds,” Shimansky adds.
Further, he says that, as the value of diamonds continues to increase, many investment banks are looking to diamonds as a way of capturing value.
“We are dealing with several banks in Asia and Switzerland, advising them on which diamonds to buy as investments,” Shimansky says.
For South Africans, investing in diamonds has the added benefit of maintaining the exchange rate between the rand and the dollar as diamonds will retain their dollar value.
“Further, a diamond is also a mobile asset, unlike property . . . and it is safer than shares, which can easily lose their value,” Shimansky explains.
However, it is up to government to create a comfortable environment for investors to invest in the South African mining industry, he says, adding that investors are, in essence, searching for stability from government and also in terms of the labour force.
While it is not up to the Cape Town Diamond Museum, which was established by Shimansky in 2011, to create investment, it does showcase the significant role of South Africa in the global diamond industry, Shimansky says, adding that, “by visiting the museum, it will become clear to investors that there is still a lot of potential in investing in South Africa’s diamond industry”.