Posted on Thursday, June 7th, 2018 at 6:54 pm by LaLonde
I wondered how the diamond industry stacked up against other industries. Like comparing how much is made, how many they employ, and how it compares to the oil, auto, food or pharmaceutical industries. The diamond industry is a 70 billion dollar per year industry.
This includes the mining, the industrial sector, drills, sanding disk, coating materials, abrasives, and jewelry. Of the diamonds mined 7 out of 10 or 70 percent are industrial and 30 percent are jewelry grade. The 70 billion includes all the mining, selling, transporting and jewelry manufacturing stores and sales.
Sounds big - not so.
The diamond industry doesn't crack any of the top lists of industries anywhere. I am not sure how far down it is. The largest industries are hard to find data on. It appears the food, global healthcare industry alone with oil, finance, auto and tobacco, are the largest.
Worldwide there are approximately100 million commercial and private autos manufactured each year. At 40 thousand dollars per vehicle we are talking trillions. That does not include auto mechanics, sales people, tire companies, windshields and car washes.
Food - Everybody eats - 3 times a day.
Health - Get sick and start learning that one.
Oil - 5 top companies in the world - 261 thousand dollar profit every 60 seconds, every minute and every day.
Finance- I know where I am there are approximately 7 financial institutions - each employs an average of 20 employees.
In the same area there is one jewelry store employing 5 people.
So when you think a jeweler is making too much ask a jeweler.
A movie came out called blood diamonds, freaked people out, had no clue this type of thing happens. It's about African rebels that were fighting governments and wanted to control diamonds in that area. There was a lot of blood. Well anytime a rebel factions tries to overthrow a government they go right to source of money to try and help their cause. Castro did it in Cuba with sugar cane.
The diamond industry fought hard to combat these blood or conflict diamonds. and put many safe guards in place to prevent them from making it to the market and they were very successful. When you think about it, the diamond industry is small and couldn't prevent Hollywood from producing such a movie. The last 6 or 7 engagements our military has been involved in, has been in oil rich areas.
I wonder when I fill my gas tank, is this blood oil?
Written by Daniel J. LaLonde
© LaLonde Jewelers 2018