De Beers Lets Sightholders Defer Chinese Goods

De Beers has allowed clients to forgo buying certain rough diamonds at this week’s sight, as the coronavirus outbreak has raised concerns about a polished glut.

The miner has let sightholders defer purchases of goods that produce the types of polished popular in the Chinese retail market, a source at the sight told Rapaport News Wednesday. The concessions apply to 1- to 2-carat rough diamonds that can make polished under a carat, as Chinese demand is highly focused on that size category, especially the 0.30- to 0.50-carat range.

Instead of taking up those allocations at this sale, the second of the year, customers will be able push them back to sights 3, 4 and 5. Those who already deferred their supply from the last two sales of 2019 will only be able to delay their purchases to sight 3, which begins March 30.

“People are very afraid of the market, and stocks are building because there are no sales to the Far East,” the source said on condition of anonymity. De Beers declined to comment on the move.

De Beers apportions rough supply to sightholders based mainly on their purchase history, and divides those allocations across the 10 sights that take place during the year. Clients can usually defer only a limited proportion of the goods earmarked from them, but the miner has provided more flexibility of late because of the weak market.

In the second half of last year, De Beers offered unprecedented measures, such as letting customers refuse half of the goods in a box or sell up to 30% of their rough purchases back to the miner.

It ended the special rules at the December sight, as an oversupply of polished in the midstream started to ease. However, the coronavirus epidemic has lowered jewelry demand in China, where the outbreak started, creating uncertainty about manufacturers’ ability to sell their polished. Concerns escalated this week when it emerged the disease had spread beyond the Far East to Europe and Iran.

“The virus has the potential to badly damage the market for the next few months, but we don’t know [the extent of the impact],” an executive at a Mumbai-based sightholder commented. “If it goes on for a long time, it will be a problem not only for De Beers, but for many, many companies in India.”

Source: DCLA

De Beers Lets Sightholders Defer Chinese Goods

De Beers has allowed clients to forgo buying certain rough diamonds at this week’s sight, as the coronavirus outbreak has raised concerns about a polished glut.

The miner has let sightholders defer purchases of goods that produce the types of polished popular in the Chinese retail market, a source at the sight told Rapaport News Wednesday. The concessions apply to 1- to 2-carat rough diamonds that can make polished under a carat, as Chinese demand is highly focused on that size category, especially the 0.30- to 0.50-carat range.

Instead of taking up those allocations at this sale, the second of the year, customers will be able push them back to sights 3, 4 and 5. Those who already deferred their supply from the last two sales of 2019 will only be able to delay their purchases to sight 3, which begins March 30.

“People are very afraid of the market, and stocks are building because there are no sales to the Far East,” the source said on condition of anonymity. De Beers declined to comment on the move.

De Beers apportions rough supply to sightholders based mainly on their purchase history, and divides those allocations across the 10 sights that take place during the year. Clients can usually defer only a limited proportion of the goods earmarked from them, but the miner has provided more flexibility of late because of the weak market.

In the second half of last year, De Beers offered unprecedented measures, such as letting customers refuse half of the goods in a box or sell up to 30% of their rough purchases back to the miner.

It ended the special rules at the December sight, as an oversupply of polished in the midstream started to ease. However, the coronavirus epidemic has lowered jewelry demand in China, where the outbreak started, creating uncertainty about manufacturers’ ability to sell their polished. Concerns escalated this week when it emerged the disease had spread beyond the Far East to Europe and Iran.

“The virus has the potential to badly damage the market for the next few months, but we don’t know [the extent of the impact],” an executive at a Mumbai-based sightholder commented. “If it goes on for a long time, it will be a problem not only for De Beers, but for many, many companies in India.”

Source: DCLA

Angola Seizes 6,579 carats of Illegal Rough Diamonds

Authorities in Angola have seized 6,579 carats of rough diamonds in a crackdown on illegal mining and immigration.

Nineteen cars and $275,000 in cash were also confiscated, according to the government-run Angop news agency.

Operation Transparency was aimed at more than 700 small diamond prospectors in the country. Two thirds were found not to meet the interior ministry’s requirements and only 260 have been allowed to carry on prospecting.

The government also deported many migrant working in diamond mines from the neighboring Democratic Republic of the Congo, a move that attracted sharp criticism from the independent Human Rights Watch.

The operation was launched in the north-eastern Lunda Norte Province December 2018.  

Source: DCLA

Angola Seizes 6,579 carats of Illegal Rough Diamonds

Authorities in Angola have seized 6,579 carats of rough diamonds in a crackdown on illegal mining and immigration.

Nineteen cars and $275,000 in cash were also confiscated, according to the government-run Angop news agency.

Operation Transparency was aimed at more than 700 small diamond prospectors in the country. Two thirds were found not to meet the interior ministry’s requirements and only 260 have been allowed to carry on prospecting.

The government also deported many migrant working in diamond mines from the neighboring Democratic Republic of the Congo, a move that attracted sharp criticism from the independent Human Rights Watch.

The operation was launched in the north-eastern Lunda Norte Province December 2018.  

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

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