The diamond trade in Antwerp is at a historic low, with reports suggesting it is even on the verge of collapse, according to Gazet van Antwerpen.
Imports of rough diamonds to Antwerp have plummeted by 38% in just one year. Over the past decade the decline has been even more dramatic, with a drop of around 70%. The trade in polished diamonds is also at its lowest point.
An estimated €200 million worth of diamonds passes in and out of the small diamond district in Antwerp every day, as the sector comprises 1,600 businesses, and employs 6,000 people.
"But not for much longer. In five years, the diamond sector in Antwerp will have completely vanished," an anonymous diamond trader revealed to the newspaper.
Gazet van Antwerpen has identified several factors contributing to this decline. One key reason is the European embargo on Russian diamonds, following the Russian invasion of Ukraine in February 2022.
This is coupled with competition from synthetic diamonds and reduced purchasing power in China and the United States. Americans are the largest consumers of Antwerp's polished diamonds, followed by buyers in Hong Kong.
Additionally, bureaucracy and numerous regulations are burdening Antwerp's diamond traders.
Another industry source notes that while the Antwerp sector is smaller, it remains reliable and high-quality, thanks to new transparency standards regarding the origins of the stones.
