Ultimately, the price of diamonds is driven by worldwide consumer demand for diamond jewelry. The Company’s diamond market experts sell rough stones from Diavik and purchase polished stones for use in Harry Winston™ diamond jewelry. This gives the Company an ability to leverage pricing knowledge and strong industry relationships that is unmatched by the individual businesses, benefits both segments and creates shareholder value.
Rough diamond prices are intrinsically linked to polished prices, creating a moving market dynamic where prices are continually changing. As both a seller of rough stones and a purchaser of polished diamonds, the Company is constantly aware of real-time prices in the market. Pricing intelligence generated by the purchase of polished stones is used to inform rough stone sales strategies and to seek to obtain the best prices for diamonds from Diavik. The Company is one of the world’s preferred rough diamond suppliers and uses its strong and established market relationships to secure the high-quality polished stones required by Harry Winston Inc.– this gives the Company a vital competitive advantage in the upper strata of the retail jewelry business.
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