Antwerp, long regarded as the world’s traditional diamond trading hub, is experiencing a significant decline amid shifting industry dynamics and the rising prominence of synthetic stones. Historically a center of diamond commerce since the 15th century, the Belgian port city has relied on merchants and cutters processing gems sourced from around the globe. However, its dominance has waned sharply in recent years.
Once accounting for around 90 percent of global diamond trade, Antwerp now handles only about $19 billion worth of rough and polished diamonds annually, roughly half the volume recorded in 2022. This decline has allowed other global centers such as Dubai and Mumbai to overtake Antwerp as leading diamond trading locations. Despite the downturn, the city's market remains dominated by Orthodox Jewish traders and a growing presence of Indian merchants and cutters.
The city's traditional diamond district, a dense cluster of gray office blocks near the neo-baroque train station, continues to operate under heavy surveillance, with thousands of CCTV cameras monitoring the streets. Yet the number of master cutters in Antwerp has dwindled dramatically, with only about 300 registered cutters remaining, many employed by firms like HB Antwerp. Many cutters have retired or ceased operations altogether, reflecting the challenges faced by the sector.
Among the remaining craftsmen is Pieter Bombeke, a 74-year-old master cutter whose family has been involved in the trade for generations. He works amid the echoing workshops on the diamond-polishing wheel, a tool that originated in Antwerp 600 years ago. Despite the risks posed by synthetic diamonds and globalization, Bombeke remains committed to his craft. He acknowledges that synthetic diamonds represent a major threat to traditional cutting but expresses cautious optimism based on historical precedent.
The global diamond industry has undergone substantial changes over recent decades. During the 1980s, much of the cutting work shifted to India due to its abundant, affordable, and skilled labor force. Today, the city of Surat in Gujarat cuts approximately 90 percent of the world’s diamonds, both natural and lab-grown. However, workers in Surat have been severely affected by industry downturns, including sanctions on Russian rough diamonds and the imposition of a 10 percent US import tariff, which initially exempted but has recently reintroduced tariffs on diamonds cut and polished in Antwerp. This pressure has led to economic hardship for diamond workers, with reports of numerous suicides in Surat in recent years.
Bombeke likens the current surge in synthetic diamonds to the early 20th-century advent of synthetic rubies and sapphires, which initially devastated the natural gemstone market before the latter regained value as synthetic gems became commonplace. He remains hopeful that, in time, natural diamonds will similarly retain their appeal despite current challenges posed by lab-grown alternatives. While the timeline is uncertain, Bombeke suggests that this transition could unfold over several years.
As Antwerp grapples with these changes, the fate of its legendary diamond trade continues to hang in the balance, reflecting broader transformations reshaping the global industry.