Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

06 september 2021

There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

30 august 2021

The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

23 august 2021

De Beers’ GemFair ropes in more than 160 Sierra Leone artisanal miners

De Beers inaugurated its GemFair pilot programme in Sierra Leone’s Kono District with 14-member mine sites in 2018 to create a secure route to market for ethically sourced artisanal and small-scale diamonds. GemFair programme manager Ruby Stocklin-Weinberg...

16 august 2021

De Beers December Sight Estimated at $490M

17 december 2012

De Beers Diamond Trading Company (DTC) December sight had an estimated value of ‎‎$490 million with sightholders still concerned about their ability to profit from ‎manufacturing, Rapaport reported.
‎“Sightholders are taking all the goods on offer but not with a happy face,” said one sight ‎participant. “There is still no profit, or very little profit in the goods, and De Beers is ‎considered 10 percent more expensive than the rest of the market.”‎
Feedback from the sight indicated that De Beers kept prices basically stable with slight ‎declines on select items, such as colored and brown goods. One India-based sightholder ‎noted that the company changed assortment in its boxes, resulting in the goods being ‎effectively more expensive. “Prices are high in 90 percent of the boxes,” he said. “Only ‎some are gaining low premiums on the secondary market, while other boxes are selling ‎at a loss.”‎
Nigel Simson, head of ‎beneficiation at De Beers DTC division, explained that the ‎company feels that rough prices are currently aligned with the polished. “There has been ‎a slight pick-up in the polished and that was reflected on the sight floor,” he said. “But it ‎was a modest sight and I think everyone is looking forward to closing what was a difficult ‎year.” ‎
The small sight came after De Beers reported that it will be unable to fulfill sightholders’ ‎intentions to offer (ITO’s) that were submitted for the contract year beginning April 1, ‎‎2012, as the company reduced production during the period of weak demand. ‎Sightholders are currently working on submitting their applications for goods during the ‎next ITO.‎
De Beers last week said it will invite eligible customers of its Diamdel rough auctions to ‎apply for a sight during the remainder of the 2012-2015 contract period. De Beers will ‎send letters to eligible companies this week, after which the applicants will have to fill out ‎a contract proposal questionnaire. De Beers will notify sightholders of the new ITO’s in ‎late March.  ‎
Lynette Gould, De Beers spokesperson, said the 2013-14 ITO’s are expected to be ‎smaller than those published at the start of the 2012 ITO because of prevailing ‎sightholder demand levels. She added that production in 2012 has been less than ‎originally forecasted at the start of the year.   ‎
De Beers production fell 20 percent year on year to 19.824 million carats during the first nine ‎months of 2012. The company has maintained its mining operations focused on ‎maintenance and waste ‎stripping during the period of market weakness that began in the ‎fourth quarter of 2011. While production at the high value Jwaneng mine was delayed ‎due to heavy rainfall in Botswana in the past few weeks, Gould stressed it would not ‎further impact group production.  ‎
Still, supply for the remainder of the current ITO period, during the first three months of ‎‎2013, is expected to be relatively small. ‎
Given the shortfalls in supply, sightholders expressed concern that De Beers might raise ‎prices in January or February. They note that polished margins have improved recently ‎and point to satisfactory U.S. demand during the holiday season. The RapNet Diamond ‎Index (RAPI™) for 1 carat certified polished diamonds rose 0.2 percent in the first half of ‎December, signaling the first possible monthly increase in more than a year. ‎
One Belgium-based diamantaire explained that sightholders have taken their losses in ‎‎2012, willing to balance the year with the profits they gained in 2011, which was a more ‎positive year for the industry. “But 2013 will have to be positive in its own right and if ‎they’re going to start tampering with prices again then they’re taking away the bit of ‎margin that there is on the goods now,” he explained. “There is a bit of a margin but it’s ‎very fragile because there’s still a lot of pressure on the goods.”‎
Simson stressed that De Beers has not made any decision regarding prices and added ‎that the company is constantly monitoring various factors that affect its pricing policy. ‎
Rapaport estimates that De Beers rough sales through DTC declined 12 percent to $5.2 ‎billion for the full year.