Value of De Beers’ June Sight Estimated at $640 Million

Rapaport reported that De Beers’ June sight closed with an estimated value of $640 million. “Prices and assortments” were much the same as the previous sight, and demand for rough diamonds remains firm.

As quoted in the press release:

There were ex-plan goods – rough diamonds in excess of sightholders’ initial application for goods – offered as demand rose during sight week. While rough demand was healthy, sightholders expressed continued concerns over tight manufacturing profit margins due to persistent high rough prices relative to polished diamonds. Rapaport News estimates that rough prices have increased by between 7 percent and 10 percent since the beginning of the year.

One sightholder said:

There isn’t much profit in the goods. Sightholders used to be able to buy rough, add value and see some profit from manufacturing when you sold the polished. If you are a master at adding value, then you could make even more profit. However, today, De Beers is pricing their rough as if they are giving the goods to you at no profit and only if you really are a master at adding value, can you make some profit.

Click here to read the full Rapaport report.