DEVELOPMENT AND FUNCTIONING OF THE CLUSTER MOVEMENT IN UKRAINE AND THE WORLD

Abstract

The diamond market is developing dynamically throughout the period of formation of the world economy. The development of new deposits, the formation of a system of processing companies and sales networks took place gradually and affected the world market, the economic development of the countries involved and the distribution of spheres of influence. The article shows the current structure of the world market for diamonds and highlights the main trends in its development. Mining, cutting, and trading companies are scattered around the world. The diamond market is quite specific, and therefore the supply and demand of diamonds is influenced by many different factors that are important to identify and understand and evaluate. This market is both a raw material, as diamonds are used in industry, medicine and for jewelry, and financial, because the purchase of diamonds is considered a reliable investment. Therefore, globalization, global financial crises, economic and political instability, and other factors are rapidly affecting the price of diamonds and have a general impact on the market. The article identifies and analyzes the factors influencing supply and demand at all stages of the formation of the value of the final product. Diamond as a raw material, finished product and financial asset is considered. The coronavirus pandemic has affected all global commodity and financial markets. The closure of mines, jewelry factories and shops has had a negative impact on the diamond market, with reduced corporate revenues and reduced sales. The article assesses the impact of anti-epidemic measures on all segments of the diamond value chain in the countries involved and identifies the asymmetry of this impact: some markets have suffered more than others. The consequences of the spread of coronavirus infection in the long and short term are also summarized. Probable future scenarios of events are considered. It was found that the new challenges contribute to the transformation of the market, the search for new sales channels, the use of new technologies and the development of the synthetic diamond market.