China Slowdown Weighing on Diamond Prices

Diamond markets were quiet in August, with dealers taking their summer vacations amid uncertainty about the important Hong Kong Jewellery & Gem Fair. Demand from China slowed due to an escalation of the US-China trade war, protests in Hong Kong, and the depreciation of the yuan.

Diamond prices continued to soften, with the RapNet Diamond Index (RAPI™) for 1 carat down 0.4% during the month.

RapNet Diamond Index

Expectations are low for the Hong Kong fair, which begins on September 16. Suppliers are anticipating weak buyer attendance as demonstrations continue to affect commerce in the city.

Jewelry retail sales in Hong Kong have declined as Chinese tourists have shifted to spending locally rather than abroad. Luxury shoppers were put off by the protests as well as the 4% depreciation of the yuan against the dollar in August. The devalued yuan puts additional pressure on diamond prices for local importers.

The drop in Chinese demand has made it difficult for diamond manufacturers to rebalance their inventory, since sales have fallen more than supply in certain categories. Cutters have significantly reduced polished production. The number of diamonds on RapNet declined by 2.5% in the past month to 1.5 million as of September 1.

Manufacturers refused about 50% of De Beers’ supply in August as the miner adopted a more flexible sales policy amid the difficult market conditions. De Beers kept its prices stable.

Rough prices need to come down to restore manufacturing profitability. Rough sales are expected to be small again in September, with manufacturers limiting their purchases until after Diwali, which begins October 27. Inventory levels should go down as US jewelers stock up for the holiday season. The challenge then will be to buy only profitable rough so as to ensure a more viable trade in 2020.

Source: DCLA

China Slowdown Weighing on Diamond Prices

Diamond markets were quiet in August, with dealers taking their summer vacations amid uncertainty about the important Hong Kong Jewellery & Gem Fair. Demand from China slowed due to an escalation of the US-China trade war, protests in Hong Kong, and the depreciation of the yuan.

Diamond prices continued to soften, with the RapNet Diamond Index (RAPI™) for 1 carat down 0.4% during the month.

RapNet Diamond Index

Expectations are low for the Hong Kong fair, which begins on September 16. Suppliers are anticipating weak buyer attendance as demonstrations continue to affect commerce in the city.

Jewelry retail sales in Hong Kong have declined as Chinese tourists have shifted to spending locally rather than abroad. Luxury shoppers were put off by the protests as well as the 4% depreciation of the yuan against the dollar in August. The devalued yuan puts additional pressure on diamond prices for local importers.

The drop in Chinese demand has made it difficult for diamond manufacturers to rebalance their inventory, since sales have fallen more than supply in certain categories. Cutters have significantly reduced polished production. The number of diamonds on RapNet declined by 2.5% in the past month to 1.5 million as of September 1.

Manufacturers refused about 50% of De Beers’ supply in August as the miner adopted a more flexible sales policy amid the difficult market conditions. De Beers kept its prices stable.

Rough prices need to come down to restore manufacturing profitability. Rough sales are expected to be small again in September, with manufacturers limiting their purchases until after Diwali, which begins October 27. Inventory levels should go down as US jewelers stock up for the holiday season. The challenge then will be to buy only profitable rough so as to ensure a more viable trade in 2020.

Source: DCLA

Botswana Diamonds identifies five targets likely to be kimberlites

The targets identified are very similar to the pipe that constituted the high-grade and famous De Beers Marsfontein mine, in so much as the pipe had little surface indication due to dolerite rock cover but grew and swelled below the dolerite.

Much of the Thorny River area geology is comprised of a dolerite dyke swarm.

John Teeling, chairman, comments:

“It has long been held that there should be high grade kimberlite pipes other than the Marsfontein mine in the Thorny River area.

“The geology made discovery difficult. New geophysical technology tries to see through the dense dolerite cover.

“The company pioneering the work, Subterrane, believe they have identified five targets likely to be kimberlites.

“We are working to better define where to drill. The targets are shallow so will not be expensive to drill”.

Conventional geophysical techniques have been unable to detect kimberlites under the dolerite including those that are deeper seated. Subterrane, a partner using its proprietary technology, enables the company to explore geophysical anomalies beneath the dolerite and those that are buried.

This could lead to the discovery of kimberlites similar to Marsfontein.

Thus far Subterrane has identified five such target areas within the Thorny River project.

Source: DCLA

Botswana Diamonds identifies five targets likely to be kimberlites

The targets identified are very similar to the pipe that constituted the high-grade and famous De Beers Marsfontein mine, in so much as the pipe had little surface indication due to dolerite rock cover but grew and swelled below the dolerite.

Much of the Thorny River area geology is comprised of a dolerite dyke swarm.

John Teeling, chairman, comments:

“It has long been held that there should be high grade kimberlite pipes other than the Marsfontein mine in the Thorny River area.

“The geology made discovery difficult. New geophysical technology tries to see through the dense dolerite cover.

“The company pioneering the work, Subterrane, believe they have identified five targets likely to be kimberlites.

“We are working to better define where to drill. The targets are shallow so will not be expensive to drill”.

Conventional geophysical techniques have been unable to detect kimberlites under the dolerite including those that are deeper seated. Subterrane, a partner using its proprietary technology, enables the company to explore geophysical anomalies beneath the dolerite and those that are buried.

This could lead to the discovery of kimberlites similar to Marsfontein.

Thus far Subterrane has identified five such target areas within the Thorny River project.

Source: DCLA

MOST DIVORCEES HOLD ONTO THEIR OLD ENGAGEMENT RINGS

63% of the women are still holding onto their old engagement ring while dating

A new survey by Worthy.com, an online auction marketplace for pre-owned diamond jewellery, has revealed some interesting trends among American women who have and are going through divorce.

According to the survey, conducted among 1,700 female participants from across the country, 78% are already in dating mindset before divorce papers are signed. Even more interestingly, 63% of the women are still holding onto their engagement ring, and dating. 68% of the women feel “scared, but also excited and hopeful, while 40% feel confident” when dating.

Diamond engagement ring

90% of the women said that values, emotional availability, lifestyle, marital status and sexual compatibility were top priorities in a new companion.

According to the most recent Wedding Report, released earlier this year and based on 6,792 survey samples collected from January 1 to December 31, 2018, couples’ spending on weddings went down 4%, totaling $24,723 on average. Although most categories went down, jewellery-related spending remained relatively unchanged from 2017.

Average spending on engagement rings went down only 0.4% year-on-year, averaging $3,388 in 2018. Average spending on wedding rings/bands for her went slightly down (0.9%), averaging $775 in 2018. Average spending on wedding rings/bands for him remained almost flat (-0.2%), averaging $454 in 2018.

Source: DCLA

MOST DIVORCEES HOLD ONTO THEIR OLD ENGAGEMENT RINGS

63% of the women are still holding onto their old engagement ring while dating

A new survey by Worthy.com, an online auction marketplace for pre-owned diamond jewellery, has revealed some interesting trends among American women who have and are going through divorce.

According to the survey, conducted among 1,700 female participants from across the country, 78% are already in dating mindset before divorce papers are signed. Even more interestingly, 63% of the women are still holding onto their engagement ring, and dating. 68% of the women feel “scared, but also excited and hopeful, while 40% feel confident” when dating.

Diamond engagement ring

90% of the women said that values, emotional availability, lifestyle, marital status and sexual compatibility were top priorities in a new companion.

According to the most recent Wedding Report, released earlier this year and based on 6,792 survey samples collected from January 1 to December 31, 2018, couples’ spending on weddings went down 4%, totaling $24,723 on average. Although most categories went down, jewellery-related spending remained relatively unchanged from 2017.

Average spending on engagement rings went down only 0.4% year-on-year, averaging $3,388 in 2018. Average spending on wedding rings/bands for her went slightly down (0.9%), averaging $775 in 2018. Average spending on wedding rings/bands for him remained almost flat (-0.2%), averaging $454 in 2018.

Source: DCLA

Graff unveils new ring crafted from 13.33ct Lesotho Pink diamond

Luxury house Graff has unveiled a new ring with a centre stone crafted from the 13.33 carat Lesotho Pink diamond.

The end result of is a 5.63 carat ‘fancy vivid purplish pink’ pear shape diamond flanked by two ‘fancy intense pink’ pear shaped diamond shoulder stones and embraced by a minimal rose gold setting.

The firm claims that its expert gemmologists and master craftsmen spent many months analysing the complexities of the diamond before devising “how best to capture the extraordinary beauty of its unusually vibrant pink hue”.

The rough stone had been discovered at the Letseng mine in Lesotho in February, with Laurence Graff purchasing it for $8.75 million.

This was a record for the purchase of any Letseng diamond in terms of dollar per carat.

The firm shares: “The world’s already extremely limited resources of pink diamonds are quickly depleting, as the mines where these rarities are discovered gradually become extinct.

“They are highly sought after by those who want to enter the rarefied and exclusive group of connoisseurs who appreciate these precious pink stones for their sublime beauty.

“Graff searches timelessly for the very best examples displaying the most vivid and vibrant colour, identifying once in a lifetime discoveries and creating jewels that showcase their remarkable hues.”

Source: DCLA