International Diamond Manufacturers Association President Moti Ganz has warned that the use of tenders in the diamond world harms the overall sustainability of the diamond industry. His cautionary comments were published last month in an article in "HaYahalom."

"There are so many tenders that the trend is threatening to interfere with our lives. And if the rough producers don't wake up in time, it won't be a mere interference, but a blow to our very existence, capabilities and survival," he wrote.

Ganz wrote that occasional tenders do no damage, particularly when they are used to sell large goods. However, he wrote that when tenders are used as the commonplace method of marketing diamonds, regular direct supply is pushed aside. Ganz wrote that tenders are feasible when they are used as one of many marketing methods, but they cannot be used as the only marketing tool for diamond traders. "…If you don't win tomorrow's tender, what will you do? Who will pay the workers' wages?" he asked in his article.

Ganz pointed out that diamond producers who manufacture large quantities end up dominating the tenders and prices rise to a level that smaller manufacturers cannot match. "When we examine these aspects of tenders, we realize that they weaken each and every link along the diamond value chain."