The main factor determining the current state of the diamond market is the global financial crisis. The situation on the leading financial and stock exchanges is still fairly dramatic. The labour markets in the US, Europe and Japan are also not in the best shape. Under these circumstances the availability of credit for diamond market players has declined drastically.
Alexander Matveyev, Member of the Federation Council of the Russian Federal Assembly, First Deputy Chairman of the Federation Council Committee on Northern Territories and Indigenous Minorities, Mining Engineer, Academician of the Russian Engineering Academy, Doctor of Economic Sciences, Professor, worked as Chief of Industry Department of the Yakutsk Region Committee of the CPSU, Chairman of the Yakutia Planning Committee, Vice-President and First Vice-President of ALROSA.
Valery Vladimirovich Rudakov – chairman of the Board of Directors of CJSC Polyus, chairman of the Committee for precious metals and precious stones of the Chamber of Commerce and Industry of the Russian Federation. In 1999-2002 - Deputy Minister of Finance of the Russian Federation and head of the State Repository for Precious Metals.De Beers reported Tuesday it has increased its rough diamond prices by an average 16 percent so far in 2008, including this week’s August sight.
The company’s sales unit, Diamond Trading Company (DTC,) explained that the strongest increases were seen in rough that produces “highly sought after SI+ and above 1 carat polished.”
“So far during 2008 DTC has seen strong and continuing consumer demand for most categories of polished diamonds, especially in the larger goods,” said Mahiar Borhanjoo, DTC’s executive director of sales and client services.
He stressed that DTC’s pricing decisions are influenced primarily by the demand for polished in the long term, RAPAPORT reported.
According to Rapaport Research records, DTC increased prices by 13.9 percent from January through July, the largest hike came out of the July sight where prices rose between 5 percent and 15 percent. Previous hikes of 6.4 percent were passed-on in April after a 2 percent increase in March.
Rapaport records also show that DTC price hikes this year have far exceeded those of previous growth years of 2003, 2004, and 2005 when prices rose an average 12.5 percent, 13.6 percent, and 8.2 percent respectively. Prices subsequently fell in 2006 and the start of 2007 after the market could not sustain those price levels and sightholders started sending goods back.
DTC prices are currently more than 70 percent higher than they were in 2000.
The sight this week is DTC’s seventh of the year out of 10 scheduled, and Tuesday’s announcement was the final cumulative price notification planned.
The company adopted policy this year to inform the public of its cumulative price adjustments at three points during the year: Before the JCK Las Vegas show in May, the Hong Kong show in September, and at its annual review around February.
Rough&Polished
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