Login

Diamond should always be the real thing - Ali Pastorini

Ali Pastorini, Senior Vice-President of the World Jewelry Hub in Panama City and owner/partner of DEL LIMA JEWERLY in an interview to Rough & Polished talked about the trends of the jewelry market in Latin America, the preferences of its consumers...

22 august 2016

We are in a seasonally quieter period for demand – De Beers

De Beers’ rough diamond production dropped 15 percent to 13.3 million carats during the first half of 2016 compared to 15.6 million carats, a year earlier, reflecting the decision to reduce production in response to prevailing trading conditions in the...

15 august 2016

The task set before industry is to provide consumer with maximum information about diamonds we sell

(Interfax.ru) - After “conflict diamonds” have been virtually excluded from the market by the Kimberley Process (KP), the latter, as well as the World Diamond Council (WDC) found they...

08 august 2016

"I believe that honesty, integrity, and impeccable customer service are the key points to maintaining a long-lasting company” - Leibish Polnauer

More than 35 years ago, Leibish Polnauer entered the industry, trading in fancy cut diamonds but soon the love for color drew him into the fancy colored diamond sector. The mid 90s saw him develop his first online website and he eventually became one...

08 august 2016

Diamond Centre as Part of Olonkholand

Lena Fyodorova, Director of Olonkholand Complex Design Company told Rough&Polished about the possibilities arising with the creation of the Diamond and Jewellery Centre in Yakutsk within the framework of the Olonkholand Complex.

01 august 2016

Cautious prognosis for diamond market after ‘good’ holiday season

30 january 2012

Rockwell Diamonds, which operates alluvial diamond mines in South Africa, said recently that anecdotal evidence suggests that diamond jewellery sales in the United States were better during the last Christmas season than the year before.

This, it said, is expected to assist in the liquidation of inventory with the resultant cash flow improvement rolling over into the January and February rough diamond purchasing period.

Rapaport Group also noted that confidence had improved in the diamond industry since January 1, following a period of relative price stability and a “satisfactory” United States holiday season.

Jewellery seller, Tiffany & Co said that worldwide Christmas-season sales rose 7 percent year on year to $952 million for the two months that ended on December 31.

It said retail sales rose 4 percent to $503 million across the Americas, which include the U.S., Canada and Latin America, while sales leaped 19 percent to $165 million in the Asia-Pacific.

Japan recorded a sales increase of 13 percent to $160 million, it said, adding that Europe sales improved by 1 percent to $117 million.

Rockwell expects diamond prices and demand to increase through the first half of 2012, while Rapaport cautioned that there were concerns whether current price levels were sustainable due to the adverse economic conditions.

The question, however, is whether the conditions that led to a dip in the diamond market during the second half of 2011 were still prevalent.

According to Rapaport the decline recorded during the second half of 2011 was influenced by increasing uncertainty caused by the U.S. and European economic crises, volatile financial, currency and commodity markets, as well as continued political instability in the Mideast.

It said tight liquidity, particularly in India, also impacted trading from July as manufacturers were unable to obtain replacement costs on the high rough prices they had paid earlier in the year.

Clearly, these factors are still prevalent and largely expected to continue influencing the market this year.

The World Bank recently slashed its global economic growth forecasts and warned that rich nations' debt problems may yet reap a crisis that would eclipse the tumult of 2008.

It noted that although the financial turmoil appeared contained at the moment, the risk of a much broader freezing up of capital markets and a global crisis similar in magnitude to the Lehman crisis remains.

It is such a gloomy picture that will largely affect the performance of the diamond market particularly, in the U.S and Europe.

However, this might not be the case in China and to some extend India, which saw its economic growth decelerate in part, last year, because of domestic policy tightening.

Diamonds.net said sentiment in the U.S about prospects for the coming months was mixed as it remains to be seen whether large retailers will build inventories at the same pace as last year.

It also said polished trading remains relatively slow in India due to weak domestic demand and caution by buyers about the general market.

Rough trading was slow but activity is expected to improve in the coming weeks as the January sight cycle begins.

“There is sufficient supply of goods in the market but very few transactions are taking place due to wide price differentials,” it said.

“Large manufactures have maintained their production levels while small and medium size cutters are operating at well below capacity.”

Chinese buyers on the other hand were currently focused on filling last-minute orders before the Chinese New Year begins on January 23, but a slowdown was expected in the coming weeks as the focus turns to the retail market, Diamonds.net said. 

By and large it appears the market will pick in some regions and slow in others.

However, with the economic uncertainty that characterized the better part of the second half of 2011 still hovering above the diamond market, despite good business recorded during the holiday season, it is tricky, as Rockwell Diamonds did, to conclude that all will be rosy during the first half of year.

Predicting the performance of the diamond market this year, especially at this stage is problematic; hence caution is the buzz word.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished

Comments

Only registered users can add comments (Register, Login)