Virus Likely to Impact Demand at De Beers Sight

De Beers and its clients expect a slowdown in rough-diamond sales at the company’s Botswana sight this week amid concerns about the coronavirus.

“It’s fair to say there will be an impact on rough demand in the short term,” De Beers chief financial officer Nimesh Patel said Thursday in an interview with Rapaport News. “I’d expect we’d see that at the [February] sight.”

The downturn in China’s retail market due to the virus outbreak has left manufacturers uncertain how long it will take them to sell diamonds they cut. Companies that supply to that region have been especially affected.

Rough that can produce polished with clarity above VS has shown weakness in recent tenders due to the lower Chinese demand, one sightholder said on condition of anonymity. Lower-clarity items destined for the American market have performed better, he added.

“It’s a mixed picture,” the sightholder explained. “People that are strongly focused on the Far East will be reluctant to buy, while those that work with the US and maybe Europe still seem to be going OK.”

De Beers will hold back goods rather than lowering prices, the dealer added, predicting that the sight would be small in value. The miner has kept prices stable for the sale, which began Monday, two sightholders confirmed with Rapaport News.

Another De Beers client expected buyers would take up most of their allocations at this sight, but said the next sale beginning March 30 would be weak if the coronavirus difficulties were still going on.

“I’m hopeful this crisis might not last more than two or three weeks,” he said.

Meanwhile, Patel pointed out that some goods could be rerouted from China to other markets, while certain constant sources of demand, such as weddings, would be delayed rather than disappearing completely. In addition, the midstream has started the year with relatively low inventories due to a reasonably strong fourth-quarter holiday season, putting it in a good position to weather the difficulties, he said.

“We’ve been through periods like this before in the industry,” the executive said. “This is, hopefully, a one-off impact, and the sooner the virus can be contained, and the sooner we can get back to the normal operation of those economies, the better.”

Source: DCLA

Virus Likely to Impact Demand at De Beers Sight

De Beers and its clients expect a slowdown in rough-diamond sales at the company’s Botswana sight this week amid concerns about the coronavirus.

“It’s fair to say there will be an impact on rough demand in the short term,” De Beers chief financial officer Nimesh Patel said Thursday in an interview with Rapaport News. “I’d expect we’d see that at the [February] sight.”

The downturn in China’s retail market due to the virus outbreak has left manufacturers uncertain how long it will take them to sell diamonds they cut. Companies that supply to that region have been especially affected.

Rough that can produce polished with clarity above VS has shown weakness in recent tenders due to the lower Chinese demand, one sightholder said on condition of anonymity. Lower-clarity items destined for the American market have performed better, he added.

“It’s a mixed picture,” the sightholder explained. “People that are strongly focused on the Far East will be reluctant to buy, while those that work with the US and maybe Europe still seem to be going OK.”

De Beers will hold back goods rather than lowering prices, the dealer added, predicting that the sight would be small in value. The miner has kept prices stable for the sale, which began Monday, two sightholders confirmed with Rapaport News.

Another De Beers client expected buyers would take up most of their allocations at this sight, but said the next sale beginning March 30 would be weak if the coronavirus difficulties were still going on.

“I’m hopeful this crisis might not last more than two or three weeks,” he said.

Meanwhile, Patel pointed out that some goods could be rerouted from China to other markets, while certain constant sources of demand, such as weddings, would be delayed rather than disappearing completely. In addition, the midstream has started the year with relatively low inventories due to a reasonably strong fourth-quarter holiday season, putting it in a good position to weather the difficulties, he said.

“We’ve been through periods like this before in the industry,” the executive said. “This is, hopefully, a one-off impact, and the sooner the virus can be contained, and the sooner we can get back to the normal operation of those economies, the better.”

Source: DCLA

A laser code could protect your diamond ring and save you thousands

Replacing a diamond ring can be an expensive prospect, but that’s the reality for the majority of Australians who don’t insure their heirlooms.

Diamond engagement rings are a big deal for many Australians, but very few are protected from would-be thieves.

Insuring diamond rings is expensive, which is why 44 per cent of Australians’ diamond rings remain uninsured. Of those that are insured, 70 per cent are inadequately insured.

That is, the rings are insured under a household policy that, in many cases, leaves the diamond vulnerable.

These policies do not cover rings taken out of the home, and most policies do not cover the expense of a diamond ring replacement.

The reason behind the expense is because untraceable diamonds are easily stolen and then on-sold at a higher price, but there is now a solution.

Diamond rings in Australia now contain a laser code that is etched in the diamond.

The code makes the rings a “low risk” theft item because they are easily traceable by police.

Certified Diamond Insurance (CDI) etches the secret antitheft serial number onto the diamonds and makes them traceable.

The insurance comes from a partnership between the Diamond Certification Laboratory of Australia and the Woodina Underwiting Agency.

CDI founding partner and head of speciality risks at Woodina, Isaac Garson, said the code was a game-changer.

“We are putting thieves and fraudsters on notice,” he said.

Now the CDI has begun work on a national database to return stolen or lost rings to their rightful owners.

“If they steal a certified diamond ring insured with CDI, it will be much more difficult to sell because the diamond’s unique ‘fingerprint’ is traceable and would be registered on a central database,” Mr Garson said.

This decreases a ring’s value on the black market as it is more difficult to move, but many older rings do not have the code.

“Many older engagement rings do not have this vital ‘fingerprint’ that make diamonds traceable,” Mr Garson said.

Mr Garson said families with expensive diamond heirlooms should get a diamond ring certification in their annual diamond check-up.

“Just like cars need an annual service to make them roadworthy so too do diamond rings,” he said.

Source: News.com.au

A laser code could protect your diamond ring and save you thousands

Replacing a diamond ring can be an expensive prospect, but that’s the reality for the majority of Australians who don’t insure their heirlooms.

Diamond engagement rings are a big deal for many Australians, but very few are protected from would-be thieves.

Insuring diamond rings is expensive, which is why 44 per cent of Australians’ diamond rings remain uninsured. Of those that are insured, 70 per cent are inadequately insured.

That is, the rings are insured under a household policy that, in many cases, leaves the diamond vulnerable.

These policies do not cover rings taken out of the home, and most policies do not cover the expense of a diamond ring replacement.

The reason behind the expense is because untraceable diamonds are easily stolen and then on-sold at a higher price, but there is now a solution.

Diamond rings in Australia now contain a laser code that is etched in the diamond.

The code makes the rings a “low risk” theft item because they are easily traceable by police.

Certified Diamond Insurance (CDI) etches the secret antitheft serial number onto the diamonds and makes them traceable.

The insurance comes from a partnership between the Diamond Certification Laboratory of Australia and the Woodina Underwiting Agency.

CDI founding partner and head of speciality risks at Woodina, Isaac Garson, said the code was a game-changer.

“We are putting thieves and fraudsters on notice,” he said.

Now the CDI has begun work on a national database to return stolen or lost rings to their rightful owners.

“If they steal a certified diamond ring insured with CDI, it will be much more difficult to sell because the diamond’s unique ‘fingerprint’ is traceable and would be registered on a central database,” Mr Garson said.

This decreases a ring’s value on the black market as it is more difficult to move, but many older rings do not have the code.

“Many older engagement rings do not have this vital ‘fingerprint’ that make diamonds traceable,” Mr Garson said.

Mr Garson said families with expensive diamond heirlooms should get a diamond ring certification in their annual diamond check-up.

“Just like cars need an annual service to make them roadworthy so too do diamond rings,” he said.

Source: News.com.au

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Alrosa finds first large coloured diamond at new Yakutia mine

Russia’s Alrosa, the world’s top diamond miner by output, has found a 17.4-carat bright yellow gem-quality precious rock at its new Verkhne-Munskoye deposit in Yakutia, which started operations in 2018.

The diamond, recovered in mid-February from the Zapolyarnaya kimberlite pipe, is the first large coloured stone found at the site, the company said.

Alrosa, which did not disclose the estimated value of the diamond, said it would be assessed and evaluated by its experts in coming days.

Diamond miners and traders have been hit hard in the past year by weak market conditions. These factors have taken a major toll on producers of small stones due to an oversupply in that segment.

De Beers reported Thursday its worst set of earnings since Anglo American (LON:AAL) acquired it in 2012.

The world’s No. 1 diamond miner by market cap said demand for rough diamonds from polishers and cutters was weak last year due to the impact of US-China trade tension and the closure of US retail outlets. Many companies in the so-called midstream are struggling to obtain financing, it said.

Alrosa believes the situation is about to change as it’s already seeing the first signs of stabilization in the sector.

Increasing demand for synthetic diamonds has also weighed on prices. Man-made diamonds require less investment than mining natural stones and can offer more attractive margins.

Industry consultant Bain & Co., however, believes that while glut that’s depressing the diamond market will probably be cleared early this year, it will take at least another 12 months for the market to fully recover.

“The industry’s first and strongest opportunity to rebalance and regain growth will be 2021,” said Bain in a report released in December, adding that supply could fall 8% that year.

Source: DCLA