Small Sight Marks Stabilizing Rough Market

A small DTC Sight this week in London supplied the market with a decent number of rough diamond boxes that received modest premiums – modest compared to the wild prices fetched only a couple of months ago.

Estimated at $500 – 550 million, Sight eight did not offer any surprises, unless you consider a limited supply of Indian goods. One Sightholder felt this was artificial, speculating it was done to back Indian traders with full stocks of polished diamonds, moving slowly.

Premiums are estimated at 4 – 6 percent, down from the double digit premiums of one of the hottest summers in rough market memory.

The slowish U.S. market, where buyers are asking for 6 months credit and are still unwilling to budge much on prices, is one factor believed to be behind the cooling down of prices.

De Beers’ pique goods boxes are noted for the decrease in prices – the smaller the goods, the bigger the relative decline in price, while the prices of cleanish goods remain stable.

The softening of premiums, the smaller Sight, and overall prices are viewed by many in the market as a sign of return to normalcy, some noting with a sigh of relief as some dealers are willing to sell goods bought during the “rush” at a loss now, perhaps with the hope of avoiding a greater loss in the near future.