Sights 9 & 10 ‘Smaller As Usual’October 23, 08
Contrary to media reports, the Diamond Trading Company (DTC) said on Thursday its last two Sights for the year would be smaller - in line with previous years, not due to any financial strain.
Sights 9 and 10 are usually smaller Sights, as goods supplied at these Sights will not be ready for Diwali or Christmas, the major diamond gifting time of the year.
“Sights 9 and 10 will go according to the ITO’s (intention to offer) made earlier this year,” DTC spokeswoman Louise Prior told IDEX Online, rebuffing recent media reports that the Sights would be smaller due to the downturn in the economic environment worldwide.
Sight 9 is predicted to total about $500 million, just 10 percent below last year’s estimates of $550 million, and in line with last year’s estimates for Sight 10. Considering that prices over the past year increased by about 16 percent the Sights would clearly have to be smaller in volume.
According to Prior, rough diamond allocations at Sights 9 and 10 will be as planned, though they will perhaps be “slightly smaller” compared to last year.
It is possible that due to a legal limitation, the DTC will not be able to make any significant changes to supply that could be construed as affecting the market. However, DTC Sightholders have some room to modify their delivery schedule, and some asked to defer some of their supplies from Sight 8 to Sights 9 and 10.
Last month World Federation of Diamond Bourses ((WFDB) President Avi Paz called on producers to decrease allocations.
Prior declined to comment on Paz’s request but said that the company was taking a long term approach. “As leaders in the market, we act responsibly,” she said.