DTC Sight 9 'Small' at $500 - $550 Million

After two Sights that offered Diamond Trading Company (DTC) clients far more than the planed Intention to Offer (ITO), this week’s Sight stuck to it, offering no more than asked for, at the same prices, without any noticeable changes to assortments.

DTC’s Sight 9 was small by recent standards, estimated at “only” $500 - $550 million. As usual, no official word came from De Beers’ marketing arm on the contents or volume of the Sight, but a collective sigh of relief could almost be heard from Sightholders, who received hardly any ex-plan goods.

‘Cash strained’ was the term used by one Sightholder after the last two Sights totaled well over $800 million each. With all major expenses paid in cash, a quiet Far East, and Thanksgiving (when U.S. clients start paying) still two weeks away, no wonder he used that term. .

Premiums on DTC boxes are in the low single digit: as low as a few percentage points on cash transaction – leaving Sightholders almost at a loss after the one percent broker fee and the VAS charge and, in some few cases, as high as nine percent on sixty day credit deals.

So, with little cash generated quickly from DTC boxes, a pipeline stacked with goods, and Sightholders that are, at the very least, short on cash, no wonder they are keeping their fingers crossed for a good holiday season in the U.S.