Interesting info on GIA and the industry

[Karl_K]

"Globally, on any working day, the intake of the GIA is 14,000 stones, according to confirmed figures. We believe that some 9,500 submissions would be for dossiers, and 4,500 for certificates."

"GIA would hold ,$1.6 billion (and maybe more, but not less) worth of polished at any given time."

"The GIA grades some 4.2-4.5 million stones a year – but that includes dossiers."

"Annually, some 1 billion stones of polished diamonds of less than 0.07 carats each enter into the diamond value chain."

"The GIA is a charitable institution. Its non-profit status, which allows it to earn some $50 million a year without any tax burden"

much more here:
http://www.idexonline.com/portal_FullEditorial.asp

While the article is about what would happen if GIA failed I find the numbers much more interesting than pondering gia failing.

 

[John P]

This article was published in DIB at the end of February.

Karl, I am glad you brought it up. Resounding implications.

 

[Karl_K]

Every time I read it more interesting numbers jump out:
"The overwhelming bulk of polished natural diamond output is in diamonds of sizes smaller than 0.18 carats. Out of 32 million carats polished, some 18.5 million carats consist of goods below seven pointers (0.07 carat), with a further 6.9 million carats falling into the range of 0.08-0.17 carats. The total annual polished production from 0.18 carats and up totals 6.6 million carats."

 

[Karl_K]

This article was published in DIB at the end of February.

Karl, I am glad you brought it up. Resounding implications.

The thought of GIA failing does not bring terror to me.
Much worse would be news of a much larger scale certificate fraud going on there(not saying that there is).
That would be much worse than gia outright failing for business reasons.

 

[spicyitalian]

Maybe not a related question. For charitable organizations, where or who do the profits ultimately go to?

 

[denverappraiser]

GIA is the most recognized and most powerful brand in the diamond business.

This is actually a fairly recent change, they used to just be an obscure college for jewelers and, for some reason, they rarely get described that way. A diamond gets BRANDED by adding a GIA cert. The name has become synonymous with good diamonds. That’s fine, even though it’s obviously untrue, but the assumption that brands are forever is also simply false. Brands come and go often and quickly. IBM. Standard Oil. Stetson. Kodak. Xerox. Kleenex. AT&T. General Motors. These are all brands that have gone from rule-the-industry status to just another company within just the last few decades. There are others on the top of the pile along with GIA. Microsoft. Underwriters Laboratories. Google. Some WILL fall. Others WILL rise. It’s happened before and it’ll happen again. That’s the way it works.

Diamonds are rocks, and extraordinarily cool rocks at that. GIA didn’t make them. They don’t cut them. They don’t even sell them. ALL they do is add their brand to them and, despite their current high status, I think they are in a much more precarious position than people tend to think. All it takes is another lab to do a better job of marketing that branding. GIA is sucking 4% out of the value chain in exchange for consumer confidence. Is that reasonable? Maybe, but the assumption that they will be on this post forever is unlikely. The lack of current serious competitors is not evidence that there will never be serious competitors. Today GIA rules the industry but tomorrow is another day and one rule always seems to apply. This too shall pass.

 

[rockhoundofficiando]

Interesting. Thanks for posting.