Avi Paz Reflects on His Presidency
PostBy Avi Paz Group At 04.09.2011
Founder and president of the Avi Paz Group reflects on his three terms as president of the Israel Diamond Exchange
What do you feel is the most important achievement of your terms in office?
The way the Israeli diamond sector got through the crisis of 2008. The industry came through the crisis and stayed strong. There is a tendency to forget the beginning of the crisis – the pressure on diamantaires from the banks and all the diamond industry systems.
The activity of the directorship and the sector's institutions at that time – that is one of the most significant achievements of my presidency.
Is there anything you regret not having accomplished?
There is a process that was only beginning in my time – expanding the bourse complex and connecting the buildings into a larger space. This is the key to bringing foreign companies to Israel. Without additional space, we can't develop and bring in more foreign firms.
What is your outlook for the Israeli and global diamond industries in the coming years?
Development in the [Israeli] diamond sector will depend on a few factors:
• The amount of credit extended to members
• The opportunities to rent/buy offices
• The willingness of the Israel Diamond Institute to invest resources in the Israeli diamond industry itself and how much money they are willing to invest to encourage buyers to come to Israel
In global terms, the situation is still very delicate. It shouldn't be forgotten that we aren't only dependent on the rough supply, rough manufacturers, African states, and the strength of diamonds, but more and more on the global economic climate – whether in terms of stocks, bank strength, or the political situation of a given country.
Luckily for us, the consumer diamond markets encompass many more countries than they did 10-15 years ago, when the US was about 60%-70% of the market. That's not the case today, and that's to our advantage. I'm basically optimistic about development in the coming years.
Looking Ahead:
The consumer market has grown. New markets and the distribution of risk offer members the possibility of developing into new markets. At one time, we would sell almost exclusively to the US and today there is Asia, for example. The US shouldn't be discounted, because it's still the No. 1 market, but there are new options: There is Hong Kong in the East, but that's not the only country in Asia – there are many others. There's the former communist bloc in Eastern Europe, there's Brazil, Mexico, and others. There are a large number of possibilities and members have to have the courage to invest [there]. They need to be moderate and not think that it's possible to sell large quantities right off the bat. The name of the game is patience, investment, consistency, and of course sources of money and polished diamonds. I would say - start looking into the possibilities in new countries. Whoever gets to a new diamond center first and establishes a foothold will have an advantage over others later.
