The diamond industry's biggest competitor has nothing to do with jewelry

The diamond industry has faced a number of challenges in recent years from the impact of COVID-19 on demand as well as the ongoing struggle to maintain market share. Edahn Golan, diamond industry analyst and Managing Partner at Tenoris, joined TheStreet to discuss how market factors continue to shape the dynamics of the diamond industry.

Full Video Transcript Below:

J.D. DURKIN: What are some of the biggest challenges currently facing the diamond industry?

EDAHN GOLAN: First of all, we are looking at a loss of market share, which is to my feeling is a temporary stage. One of the biggest competitors is travel. Travel is expensive. And sometimes people will still prefer to buy jewelry over traveling. I don't think it's a big alternative. It's not an important alternative. But at the end of the day, I think people will still prefer traveling even if they need to spend less on travel. 

And the other element is how do you present to the market a product that now has two very different characteristics. One is natural, which will remain higher priced with everything that goes with it. So it's say luxury and something that we can strive for. And on the other hand, there's something that is in theory just the same, but it has a depreciating value. But buying a bigger size is very easy. And that sort of, it's a clash that is a clash that will need to be resolved in a very clear way in the mind of consumers or you will lose them.