DTC Sight 5: Re-applying Sightholders Don’t Complain about Prices

Sightholders returning from the Diamond Trading Company (DTC) Sight in London this week said that the increase in the price of rough goods was reasonable and in line with current price trends. Most price increases were apparently in the nicer goods, big and small alike, with smaller rises in the lower quality goods. Prices rose an average of 5 percent

A 3-5 percent increase was noted in the 3-10 carat, white, high quality goods boxes. An average 1-2 percent increase was seen in ‘Indian’ goods, mostly in the higher quality items. The price of two Indian goods boxes were reportedly raised by 10 percent.

While the rise in DTC goods was generally accepted without grumbling, collection goods were a different matter.

Two reasons were given by Sightholders for the muted response to the price increase: prices are in line with premiums paid in the secondary market for the DTC boxes. One Sightholder noted that the DTC is still the cheapest source for rough diamonds. In fact, a number of Sightholders offering their goods on the market asked for higher prices for their existing boxes before the Sight, to compensate in advance for the increased price.

The second reason for the lack of complaints is that Sightholders are in the midst of their application process for the next contract period. Next month, they will submit their questionnaires (previously known as the Profile), which means a lot of extra work.  

The Sight is estimated at $600 - $620 million.