Dubai City of Gold 2006

1
Dubai City of Gold - 2006

• Diamond Trading on the Internet
• Threat or Opportunity
• April 24, 2006 Dubai
• Martin Rapaport
• Martin _at_ Rapaport . Com
• www . Rapaport . Com

2
About Rapaport

• Rapaport Group
• Global Organization
• About 100 employees
• Offices and Companies Las Vegas, New York,
  Antwerp, Vicenza, Ramat Gan, Mumbai, Dubai, and
  Hong Kong
• Rapaport Information Services
• Primary Source of Diamond Price and Market
  Information
• Rapaport Diamond Report
• Rapaport News _at_ www. Diamonds. Net Research

3
About Rapaport

• Rapaport Group
• Diamond Trading Services
• INDEX Internet Diamond Exchange B2B
• RapNet Diamond Trading Network B2B
• Daily Listings of over 2.25 Billion
• Diamond Tenders Brokerage Services
• www. Diamonds. Com B2C
• Corporate Responsibility and Advocacy
• World Diamond Council Kimberly Process
• Active in Sierra Leone with US AID DFID
• Fair Trade Diamonds and Jewelry

4
The Information Revolution

• Information Technology and the Internet are
  revolutionizing the world we live in
• Integrated Information Systems now store and
  process unlimited amounts of information
• The Internet provides a highly efficient global
  communications network enabling the delivery of
  highly specific information to everyone and anyone

5
Information Issues

• Information revolution not evolution
• IT capacity and capability is growing faster than
  our ability to use it.
• We do not control information, information
  controls us.
• Unlimited information is too much information
• The great challenge is how to mine and use
  information
• IT is powerful not because it stores information.
• Real power comes from the ability to select and
  communicate information

6
Information Issues

• Everyone and anyone has access to information
• The cost of information communication approaches
  zero
• There is no relation between the cost of
  information and its value
• It is hard to control who gets information and
  how they use it
• Transparency is a social value because it is a
  technological inevitability

7
Information Impact

• The unlimited availability of information is
  impacting global politics, economics, science and
  trade as it creates an enabling environment for
  globalization.
• We are at the dawn of a new information age whose
  impact on civilization will be greater than
  anyone can imagine.

8
Internet Facts
9
The Internet and Diamonds

• Diamonds come in a broad range of shapes, sizes
  and qualities. There are thousands of diamond
  types.
• Diamond demand tends be very specific. Finding
  the right diamond can be like looking for a
  needle in a haystack.
• The Internet provides instant access to hundreds
  of thousands of diamonds worth billions of
  dollars. It enables buyers to selectively and
  competitively search, compare, price and locate
  the exact diamond they need in minuets.
• The availability of diamonds on the Internet is
  having a major impact on the B2B and B2C diamond
  markets.

10
The Internet and Jewelry
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Key Questions

• Can business survive when customers know prices?
• Is an educated consumer our best customer?
• Being transparent sounds good but what about
  profit margins
• Are diamonds a commodity?
• If yes, is this good or bad for the diamond
  industry?
• Gold has doubled in price since 2002, why hasnt
  diamonds?
• Can emotional demand coexist with a commodity?
• Are investment diamonds dangerous?
• How will the Internet change the way we do
  business?
• How can we use the Internet to enhance our
  position?

12
Diamond and Gold Prices

• Thank You
• Martin Rapaport

13
Conclusion

• The Candle Story

14
Conclusion

• Thank You
• Martin Rapaport