Prices of Rough Diamonds “Softening” by 14-20%, Gem Diamonds

In a third quarter statement, Gem Diamonds noted that prices for large, top quality rough diamonds softened by some 14 percent at the recent Letšeng tender held in Antwerp. For smaller goods, prices were weaker.

The prices achieved by top end production mined at Ellendale sold under the “off take agreement” have been unaffected by recent events, Gem said. Demand and prices for fancy colors are holding up well while prices for Ellendale’s commercial goods sold at auction in Dubai were weaker by more than 20 percent.

“At the moment the pricing environment remains uncertain,” Gem noted. Prices of rough diamonds in the market have been declining in the past couple of months.

The diamond miner sold in the third quarter 25,281 carats for $39.36 million, achieving an average of $1,557 per carat.

During the quarter, a number of D color type IIA rough diamonds were sold. A 55.47 carat stone sold for $69,560 p/c, a 49.44 carat stone sold for $54,976 p/c, a 39.98 carat stone sold for $46,823 p/c and a 37.36 carat stone sold for $44,165 p/c.

The quarter’s tenders did not included the 464.3 carats rough diamond the company recently mined, estimated to be worth $16.6 million.