Last DTC Sight of the Year Short and Uneventful

With premiums sometimes non-existent and retailers at the pinnacle of their annual activities, the worlds largest supplier of rough diamonds offered a relatively small Sight this week, estimated at somewhere over $450 million.

De Beers’ rough diamond marketing firm, the Diamond Trading Company (DTC), held a short tenth Sight, which was practically over by noon on Wednesday. Not that it really matters if the goods are sold in six days or two and half, but it was symbolic in some ways. A busy year that saw strong rough diamond prices ended in a very laidback manner.

Few Sightholders received ex-plan goods (additional goods beyond the Intention To Offer- ITO), prices and assortments were of no significant note. Premiums, once a great way to make 10 percent on your money in a single day, dropped to nil for some boxes – a losing proposition considering the 1 percent broker fee, the 1.8 percent VAS fee and other expenses such as flights and hotel costs.

One insider described the mix as having more Russian goods, noted by their better colors but not as good models.

Last Friday, DTC’s clients received their ITO’s for the first six months of 2006. It did not generate any surprises - as usual some Sightholders will receive more goods, others less, and the overall value is estimated at about the same as during the first half of this year. This means that in carat terms supply will probably shrink some in 2006.