Big DTC Sight This Week as Premiums Slide

DTC Sightholders are getting a super size Sight this week, estimated in the market at around $800 million. But as they are finding out, premiums on the boxes are over the hill and on a downward trend.

The Diamond Trading Company’s (DTC) Sight seven is perhaps the biggest Sight in DTC history, at least in value. Sightholders heard in advance from De Beers’ marketing arm that they will receive an increased supply as the quiet summer is over.

Those among them seeking to sell some of the DTC boxes of goods are finding that the upper double digit premiums paid before and during the last Sight are gone and now the secondary market is willing to pay lower double digit to single digit premiums on the goods.

Those who sold their boxes in advance acted wisely. This week the premiums are even lower than last week. The 3 - 8 boxes, for example, that sold in the upper double digits five to six weeks ago, sold for about 9 percent above DTC price last week, and fell another 2 percent this week.

“There isn’t much money in the market,” explains one market insider. “The polished goods aren’t moving much and there are plenty of stocked goods.” Add to that the recent bankruptcies, and dealers are acting with caution.