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December 2007

The Diamond Manufacturers and Importers Association has written to Diamond Trading Company director Varda Shine, asking her to support the American industry when it selects sightholders. Here are excerpts from the letter:

“The merits of having American Sightholders and an active diamond cutting base in the United States are many. The American Sightholder is a leading promoter of diamonds in general, and the Diamond Trading Company in particular, to the retail market, the largest consumer of polished diamonds and diamond jewelry in the world. American Sightholders educate their customers about the significance of what it means to be a Sightholder and the importance of adhering to Best Practice Principles. The American diamond dealer better understands the domestic marketplace and the requirements and intricacies of the retailer and consumer. The American manufacturer is as technically advanced and sophisticated as any foreign manufacturer, able to add value, creativity and understands better how to service the domestic industry. …. Continued rough supply to American manufacturers is crucial in supporting the win/win solution for the entire diamond and diamond jewelry industry.

“The elimination of sights to American manufacturers not only damages those who lose their direct supply from you, but also burdens those who rely on a limited outside supply. As evidenced by previous reductions in the Sightholder list, when a firm loses their direct and consistent supply, they are forced into the open market, increasing the competition for a limited supply of outside goods.

“Subsequently, prices are driven upward having little to do with the demand for polished diamonds by consumers. The result is increased market volatility, bank and market debt increasing to unacceptable levels, payment terms being extended, and receivables becoming more difficult to collect. The irreparable damage that is affected upon the marketplace is symptomatic of the problems and desperation that we are experiencing today.”

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