Industry Eyes Rough Diamond Prices This Week

(IDEX Online News) - The diamond industry expects stable prices with minimal changes while the Diamond Trading Company (DTC) and Rio Tinto Diamonds are holding their sales week starting today (Monday). The two, together with supplies from Angola, will likely bring to the market over half a billion dollars worth of goods.

De Beers is not expected to increase prices at the current Sight, the year’s ninth. Traditionally, end of the year Sights are smaller ones. Rio Tinto, considered a more expensive source of rough, is not expected to increase prices either.

The question, however, is at what markup first-hand buyers will sell their acquired goods to the secondary market. Most of the recent fluctuations in prices in recent months were a reflection of changes in paid premiums.

A box of DTC goods can command anywhere 2-3 percent to well over 20 percent for sought after items.

The understanding that prices need to ease is viewed as mostly academic. Buyers are willing to pay at times a high price to ensure that their polishing facilities keep working, even tough the profit margins are low due to the stunt growth of polished prices.