Editor’s Note
This dispatch from Antwerp’s historic diamond district captures a moment of profound crisis for a traditional industry. The personal account of a longtime jeweler facing a “catastrophic” downturn speaks to broader economic pressures and a potentially generational shift.
Menashe shrugs his shoulders. The jeweler has been located on Pelikaanstraat, on the edge of Antwerp’s diamond district, for over thirty years. In his experience as a merchant, he has never lived through a situation as “catastrophic.”
Menashe offers significant discounts of up to 70% on his diamond-adorned rings. “But they don’t sell,” he laments.
The sun shines on the Antwerp metropolis, and on this Valentine’s Day, several curious onlookers crowd in front of the countless shops. “Diamonds are forever, like love,” they have been promised. Enough to entice them to spend thousands of euros on a precious stone for their chosen one. “That’s a slogan from the 1940s. It doesn’t resonate with many people anymore,” relates a knowledgeable local.
The diamond and Antwerp: the long love story, dating back nearly 150 years, seemed eternal. Until recently, 80% of the world’s rough diamonds passed through the city. But the last few years have been “terrible.” The National Bank of Belgium reports a 70% drop in gem imports to Antwerp since 2014. This collapse accelerated in the last two years with sanctions on Russian diamonds linked to the invasion of Ukraine. Note that these official figures are contested by the sector represented by the AWDC (Antwerp World Diamond Centre). Various diamond traders also told us that “everything is fine” in Antwerp.
But all the specialists consulted indicate the exact opposite.
The Belgians, however, long resisted implementing sanctions against Russia, the world’s leading diamond producer. We all remember the lesson given (“Peace is worth much more than diamonds”) by Ukrainian President Volodymyr Zelenskyy to Belgian parliamentarians. Finally, after tough discussions, the G7 countries and the European Union agreed on a system to boycott Russian diamonds while preserving Antwerp’s position.
Antwerp therefore feels betrayed and the scapegoat of these sanctions.
This crisis seems to be affecting the entire diamond city, from the jeweler to the artisan goldsmith, to the rough diamond trader. It is difficult to understand how this separate little square kilometer, right next to the majestic Antwerp Central Station, functions. Each street seems to have its own codes, and many are wary of journalists.
The closer one gets to the heart of the district, where the various diamond exchanges are located, the more security systems appear and tongues become tied.