Diamond traders from around the world recently assembled at the third Antwerp Diamond Trade Fair (ADTF), which took place at the trading halls of the Antwerp Diamond Bourse and the Diamond Club of Antwerp. Seventy diamond firms were present at the invitation-only fair. The Diamond Trade Fair lets participants view and compare diamonds in a relaxed setting and the event is  a key gauge for market outlook.

The fair also showcases Antwerp as a vital diamond industry hub and center for the polishing, cutting, and certification of diamonds. Buyers from Europe, India, Turkey, Thailand, Ukraine, and the Middle East were present.

A Gala Dinner concluded the first day of their fair and participants were encouraged to explore Antwerp’s cultural offerings.

"We hope that this fair will strengthen Antwerp as an important centre for diamonds for years to come," said Raphael Rubin, a senior official from the Antwerp World Diamond Centre (AWDC).

Buyers from the Middle East were a particularly strong presence at the fair, as it helps them increase their sourcing for goods—Saudi Arabia and Lebanon boast an increasing demand for high-end goods and have become important target markets for Antwerp diamond firms.

But Antwerp faces tough competition from India and Dubai. India boasts lower labor costs and many diamond factories and hubs, such as the diamond-center-city Surat. India’s growing middle class is increasingly buying diamond jewelry. Although the price of polished diamonds rose during the first half of 2011, it weakened during the second half of the year as a result of global economic uncertainties.

Another challenge faced by Antwerp is that the European demand for polished diamonds has slowed as a result of the euro zone debt crisis. Italy, for example, has been particularly hard hit by the euro zone crisis. Dealers say they expect U.S. buyers to re-stock after the Christmas jewelry sales season.

"We're expecting to see solid growth for diamonds from the United States this year as the U.S. economy is picking up," said Shreyash Shah of Antwerp-based Paras Gems.

A prominent UK diamond rep said that diamond sales are expected to hold steady in 2012, despite consumer recession fears.

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