Small Sight, Large Appetite

(IDEX Online News) - Despite low expectations for the upcoming holiday season and growing polished diamond inventories in the pipeline, demand for rough diamonds is strong, mostly for pique goods, according to market sources.

Prices of goods at the Diamond Trading Company (DTC) Sight this week remain unchanged from the last Sight, held in late August, despite a certain expectation that prices will rise. As a result, traders in the secondary market expected to pay more, which resulted in higher premiums.

Most of the demand is coming from India, with additional reported demands from Israel and Belgium.

The strong demand comes as a surprise, considering the current environment. The pipeline is full of high priced polished and buyers are refraining from buying goods due to the prices.

At the same time, there is a sense of a shortage of goods - though not a real shortage, only a perceived one.

The Sight is estimated at $420 million, a relatively small Sight, typical for this time of year.