Diamonds are a rare commodity. Those who do business with these precious stones have a set of problems that are unique to their industry. Revenue forecasting can solve many of their problems and it is here that astro strategist Hirav Shah can help transform the success rate of diamond businesses. Being a corporate and business strategist, he combines astrology to the extent needed and gives firms a reliable and concise report to remain buoyant and successful
Diamonds are precious, diamonds are alluring. Diamonds are niche and that’s what increases the desire to own them. “My style is not that big. I wear heels, tight pants and I wear diamonds,” said Donatella Versace.
But to sum up the craze, it would be ideal to quote Elizabeth Taylor, who famously said big girls like big diamonds. Diamond surely rocks when it comes to gemstones. It is said that nearly 142 million carats of diamonds have been produced from mines worldwide in 2019. Among the countries that topped the production include Australia, Canada, the Democratic Republic of Congo, Botswana, South Africa and Russia. Russia is said to have the largest reserves at 650 million carats. As per estimates, the worldwide reserves are estimated at 1.2 billion carats.
So, this shows that the diamond business is a rather lucrative business for high-end investors. Because the product is exclusive, the clientele are exclusive.
In a rather interesting development, in Brussels, which is the leading market for diamonds in Europe, the business is now led by Indian diamond merchants, who with their age-old and time-tested methods control the market in Brussels.
The advantages of diamond industry
● The most important advantage of ethically mined diamonds is providing support for workers, their families and their communities. A look at various mining communities shows that diamond workers live in communities and this helps create jobs for the locals and stimulates the economy.
● Millions of people have access to healthcare due to the thriving industry. In countries where diamonds are mined, especially in Africa, millions of people are said to reap the benefits of diamond mining as the government spends money from diamond revenues. Some African countries have better health access when compared to some European countries and exceed the standards of the World Health Organisation.
● Diamond revenue is helping African nations combat HIV/AIDs. Several sub-Saharan countries struggling with HIV/AIDS such as Botswana, Namibia, South Africa, Zimbabwe are being able to implement programmes that include education, medicine and reversal of HIV/ AIDs in these countries.
● Conflict diamonds are as good as zero. The Kimberley process and global attention have put a virtual stop on conflict diamonds which once came from countries like Sierra Leone, Liberia, Côte D’Ivoire. Now diamond importers such as Belgium, UAE, USA, Israel have strict restrictions in place with regards to diamond imports and this is a welcome sign to end war and strife in these countries. This also puts a stop to child soldiers and children working in unhealthy conditions.
● Diamonds provide employment opportunities around the world. The cash-flush industry is said to sustain around 10 million people around the world in the form of miners, cutters, jewellery, manufacturers and retailers. The market also helps secondary market suppliers, security, technology, tools and equipment of all kind. When it comes to India, nearly 600,000 people are employed by the industry.
● In Africa diamonds have transformed entire economies and changed their lifestyles. Just to make a case, Botswana is a country that has transformed tremendously due to diamond mining. Once among the poorest countries of Africa, it has become the fastest growing economies on the continent. In fact, it ranks high in terms of economic freedom to its citizens, which is better than Norway and Israel. The government has developed infrastructure so that the burden on mining is reduced.
What are the problems inherent to the diamond industry?
Diamond industry is no small industry. It’s a niche industry and has problems that are in tune with its size.
■ It can lead to soil erosion
■ Ecosystem destruction.
■ Another politically incorrect affect is mining of blood diamonds in conflict zones.
The industry has however undergone a major overhaul in the past 20 years due to the many challenges it faced. Of late, it has transformed into a transparent and ethical industry with strict requirements around employment and environment standards.
Industry size of diamond Industry
The global diamond market is estimated at $1.79 billion in 2018 and is projected to witness a CAGR of 2.9% from 2019 to 2025. According to Bain and Company’s Global Diamond Industry Report 2013, mined diamond production will decrease by 2019, falling 1.9 per cent per year. In comparison to 50 active mines now, only 15 mines are expected to become operational in the next 40 years.
Problems that can impact the industry for small, medium and not so large diamond industries
There are a variety of problems that can affect the other players in the industry.
1) Hiccups in supply chain
2) Sudden fall in diamond supply
3) Fluctuations in market that can affect the pricing of diamonds
4) Recession that could lead to reduced demand from customers
5) Online shopping that is a bane to diamond merchants
6) Various external factors, like change in government, change in policies, change in workforce, can lead to disruptions in the plans of diamond merchants.
What is the solution?
■ The ideal solution is to opt for revenue forecasting methods. Revenue forecasting prepares the firm, both big and small to make the right decisions at the right time to circumvent the problems that are bound to happen.
■ For starters, one has to be prepared for problems, as they are part of the bigger picture.
■ No company thrives without problems. In fact, solving a problem also helps the company to stand better and more experienced.
■ A company will know when to invest and when to divest thanks to revenue forecasts.
■ Similarly, a firm can be prepared for a dull period and accordingly manage its logistics and supply chain.
■ Financial forecasting can also help a firm decide on increasing or decreasing manpower.
■ If a company has plans of expansion, of taking over other businesses, of expanding its operations in different geographic locations, then a good financial forecast will help it make sound decisions.
■ Governments often change policies, bring in new laws leading to disruptions in the industry. Having a revenue forecast will help handle such developments.
■ Be it increase of revenues or dip in revenues having a secure revenue forecast will guide firms to take the right steps in the right direction.
When does an asto strategist like Hirav Shah come into picture?
The biggest decisions can be handled through an astro strategist. Hirav Shah is one of his kind astro strategist in business and has a diverse portfolio of clients from various industries. He day in and day out meets clients, discusses various aspects of their industry and comes up with a strategy to ensure his client’s business flourishes.
He is pro in corporate techniques, business strategy and when he combines these with readings of your personal chart, he comes up with a comprehensive, yet in-depth analysis of the dos and don’ts depending on the chart of the owner and Business.
Also, the most note-worthy point about Hirav Shah is his being the only strategist in business. He understands how financial forecasting can help an industry survive and puts forth his knowledge to the client’s satisfaction.
“Planning revenues and getting an Estimated income forecast will help diamond firms big time,” concludes Business Strategist Hirav Shah.