Prices of Gem Diamonds Large Goods Fall 48% in H1

Prices of rough sold by Gem Diamonds were slashed nearly by half in the first six months of the year. The average price per carat for its Letšeng mined goods was $1,308, declining 48 percent from the $2,512 p/c achieved in the first half of 2008.

The drop is not surprising, considering that the diamonds are large, high color and clarity diamonds, the kind of items that suffered the most from the current crisis. According to the company, rough diamond prices have firmed across almost all categories in the second quarter. “In recent months prices first stabilized and then strengthened,” said CEO Clifford Elphick.

Gem Diamonds sold, however, 56,663 carat of goods from the mine, 58 percent more goods than it did during the first six months of last year.

Production grew by 6 percent to 47,165 carat, indicating that the company held on to some goods mined prior to January 1.

Twenty diamonds from Letseng sold for more that $20,000 p/c, including a 49 carat stone which sold for $37,100 p/c, a 52 carat stone sold for $36,942 p/c and a 126 carat stone which sold for $32,685 p/c.

The average price for Ellendale’s rough diamonds was $160 p/c in the period.

“While I remain cautious about the strength of consumer demand in the important U.S. market, large diamonds from our flagship mine Letšeng, remain some of the most sought after, attracting high prices per carat,” added Elphick.

The company’s financial results for the period will be published on August 26.