At the time, De Beers and its associate companies had on many occasions before that fateful November, assured Botswana and the world that the diamond industry would pass the downturn unscathed because demand was outstripping supply at that time.

However, Sightholders who were now holding excess inventory and facing cash flow problems decided they would not be buying more rough during Sights 9 and 10, it then hit home that diamonds are not forever as much as De Beers would like to still believe.

 This time around, the general global economy has now seen some improvements and the rough diamond market has recovered and as such according to DTC Botswana spokesperson Kago Mmopi, the just-ended Sight  9  performed favourably compared to the same period last year.Mmopi says its DTC Botswana's policy not to avail details of Sight performance but those close to the industry say the sales has improved tremendously as compared to last November but they remain subdued especially in the US.

Gem imports by the US, which is the biggest consumer of Botswana diamonds remained low in September as gross rough diamond imports totalled $22.09 million on imports of 14,142 carats, an average value of $1,562.28 per carat. According to rapaport.com, net imports stood at $6.41 million.

Both imports and exports in the US are far below last year's figures, on the heels of the economic crisis that brought down rough diamond prices as well as consumer spending on diamond jewellery.Botswana was the source of $4.3 million worth of goods."There has been gradual improvement in the rough diamond market since the 2nd quarter of this year, although at much reduced demand levels compared to 2008.

Traditionally,  sales begin to soften towards the end of the year as Sightholders concentrate their efforts on the all important retail selling season," Mmopi said.

DTC Botswana opened in July this year after  temporarily closing  to conserve cash but the company has not yet resumed normal working hours.

The company had to also implement a Voluntary Separation exercise whose objective, Mmopi said, was to achieve savings on the monthly wage bill. "We had to take action and find innovative ways of conserving cash and protect the company's cash position in view of reduced sales volumes."

He said the exercise was open to all DTC Botswana employees and has since been concluded.

"It is important to note that DTC Botswana has not taken a decision to embark on forced retrenchments."

Mmopi said even though the economic crisis presented them with challenges for the luxury goods category as a whole, diamonds are uniquely positioned to withstand and emerge from the short-term uncertainty.

DTC Botswana believes that owing to medium-term supply issues, demand outstripping supply and long-term fundamentals like low reserves and no major diamond discoveries then the outlook for the industry remains rosy.

"Even in a recession, people continue to get engaged, married and celebrate special anniversaries and the value of gem. Also diamonds are a rare and finite treasure of nature and, with future demand growth in emerging markets, demand is likely to significantly outpace what is forecast to be lower levels of diamond supply for many years to come," Mmopi said.