DTC Sights Continue To Grow While Liquidity Becomes an Issue

Diamond Trading Company’s (DTC) Sight 8 is reportedly larger than the previous Sight, estimated at $850 million, probably the biggest ever. Sightholders received goods beyond their ITO, with the additional allocation reflected across the board in practically all boxes.

Following the very large Sight last month, estimated at +$800 million, comes an even larger one. According to Louise Prior, DTC Senior Corporate Communications Executive, the size of the Sight is a result of larger than predicted mining production.

Sightholders received a big addition to their ITO, mostly in items they have asked to receive. However some Indian Sightholders said that while they got additional goods, their allocation was not significantly larger.

The increase was estimated at 20 percent above the collective ITO in carats and therefore, with the value increasing about 6.25 percent, the bulk of the addition is probably in smaller and cheaper goods.

Some Sightholders are wondering what to do with all this rough, fearing a situation where they are left with mounting stockpiles of polished.

One Sightholder said that a slow market in Antwerp and Ramat Gan, with the approaching Diwali in India and limited pickup in sales in the U.S. raises concern. Coupled by what is considered by many a mediocre Hong Kong show (at least sales wise, traffic was high) and a further 2 – 3 percent reduction on premiums on the boxes now down to a single digit, many in the market share this sentiment.

One possible solution that some Sightholders might be exercising is not picking up their boxes from the banks, after paying the DTC. While some insist it is the case, others flatly rejected it.

With a less than excited mood, and some obvious liquidity issues, those with cash can find great bargains in the market, or as a market insider reflected, “Cash is king”.