Botswana’s diamond trade is expected to depreciate due to reduced demand

Botswana diamond mining

Botswana’s finance ministry disclosed that the diamond trade in Botswana is set to fall back in 2023, due to reduced demand.
This is as opposed to 2022 when Botswana’s total mining production increased by 8.2%.
Botswana anticipates that the production of diamonds would fall by 1% in 2023, and growth in the diamond trade will decrease to 7%.
An official from Botswana’s finance ministry stated on Wednesday that Botswana anticipates its mining sector’s production to remain flat this year as the diamond business loses its luster as a result of a decline in consumer spending and reduced demand for diamond jewelry.

In 2022, the total mining production increased by 8.2%. Although Botswana is the continent’s biggest producer of diamonds, this year’s improvements in copper and coal will not make up for the fall in this commodity.

About the majority of Botswana’s diamonds are produced by Debswana, a joint venture between the government of Botswana and De Beers, a division of Anglo American Plc (AAL.L). In 2022, production increased by 8% to 24.1 million carats.

Trading in diamonds increased 41% in the last year, with Botswana also benefiting from Western consumers avoiding Russian stones as a result of its invasion of Ukraine.

Botswana anticipates that the production of diamonds would fall by 1% in 2023 and that growth in the diamond trade will decrease to 7% from 41% in 2018.

Botswana’s finance ministry senior policy advisor, Keith Jefferis expressed the same sentiments in a statement to the American-based news agency, Reuters.

He noted that the diamond trade would face a major setback during the year, due to a slowdown in consumer demand, particularly in the USA.

He stated, “We see the diamond sector having a bit of a tough year due to an expected slowdown in consumer demand particularly in the USA, because of pressure on real income and consumption.”

High demand for coal and anticipated increases in copper mine production will somewhat offset this.

The Motheo copper mine, owned by Sandfire Resources (SFR.AX), is scheduled to begin operations this year, while the Kalahari Copperbelt’s Khoemacau copper mine is ramping up production to reach its nominal capacity of 60,000 tonnes annually.

The two active coal mines in Botswana the state-owned Morupule and Minergy’s (MIN.BT) Masama mine saw record exports in 2017 and are now considering increasing output to keep up with the country’s high demand for coal internationally.

According to forecasts from the finance ministry, the government anticipates mining royalties to decrease from 6.1 billion pula ($3.41 billion) last year to 4,5 billion pula ($3.41 billion) in 2023. The amount of dividends owed to the state would likewise decrease, from 15 billion to 11,3 billion pesos, in 2022.

Source: africa.businessinsider

Will Laboratory grown diamonds take over the market ?

As of 2021 the laboratory-grown diamond trade market was estimated to be worth around $1.9 billion, according to a report by Frost & Sullivan.

This market is expected to grow significantly in the coming years, with some estimates suggesting that it could reach a value of over $15 billion by 2035.

laboratory-grown diamond trade has been growing steadily in recent years. There are several factors driving this growth.

Price: Laboratory-grown diamonds are typically less expensive than natural diamonds, which makes them an attractive option for consumers who are looking for high-quality jewelry at a more affordable price.

Ethical concerns: Some consumers are hesitant to purchase natural diamonds due to concerns about ethical issues such as conflict diamonds. Laboratory-grown diamonds are considered to be a more ethical alternative, as they are produced in a controlled environment and do not have the same potential ethical issues as natural diamonds.

Environmental concerns: The process of mining natural diamonds can have a significant environmental impact. Laboratory-grown diamonds are generally considered to be more environmentally friendly, as they do not require mining.

Advancements in technology: The technology used to produce laboratory-grown diamonds has improved significantly in recent years, making it easier and more cost-effective to produce high-quality diamonds.
All of these factors have contributed to the growth of the laboratory-grown diamond trade, and it is expected to continue to grow in the coming years.

The answer is not yet: It is worth noting that natural diamonds still hold a significant share of the diamond market, and it remains to be seen how much of an impact laboratory-grown diamonds will have on the industry as a whole over the next decade.

Source: Michael Cohen DCLA

Do you lose money when selling a diamond ?

The amount you will lose selling a diamond depends on several factors, including the quality and characteristics of the diamond, the current market demand and prices for diamonds, and the method of sale. 

In general, you can expect to receive a lower price for a diamond when you sell it compared to the price you paid for it. This is because the diamond market is highly competitive, and buyers will typically offer a lower price to ensure they can make a profit when they resell the diamond.

If you sell your diamond through a jeweller, you can expect to receive a lower price compared to selling it through a private sale or auction. Jewellers typically offer a lower price because they need to make a profit on the resale of the diamond, and they need to cover their overhead costs.

To get a better idea of how much you can expect to receive for your diamond, you may want to have it appraised by a certified appraiser or seek the advice of a reputable jeweller. They can give you an estimate of the diamond’s value based on its characteristics and the current market conditions. The DCLA. GIA, HRD and IGI are a good place to start the process.

One of the biggest factors affecting the resale value of a diamond is its quality.

Diamonds are graded based on their cut, colour, clarity, and carat weight, and diamonds with higher grades will generally command higher prices than those with lower grades. Other factors that can affect the resale value of a diamond include its shape, rarity, and the current demand for diamonds in the market.

Source: Michael Cohen DCLA

Adele ‘engaged to beau Rich Paul’ with dazzling diamond ring worth $1million

Adele has sparked speculation she is engaged to her beau Rich Paul after she was spotted wearing a huge diamond ring.

The singer, 34, and her sports agent partner, 41, have been dating for two years and are thought to be planning a summer wedding this year.

Rich reportedly popped the question with a dazzling ring, which has been estimated to be worth a massive $1million (£830,000).

Adele was seen wearing the sparkler on her wedding finger at her latest Las Vegas show over the weekend.

The stunning piece of jewellery features a pear-shaped diamond in the centre of a sparkling silver band.

A jewellery expert has estimated that the ring is approximately 10 carats and comes with a very hefty price tag.

“This one looks sparkly on all fronts, and makes us believe it would be very high quality indeed,” Apeksha Kothari diamond expert from Rare Carat said.

She told PageSix that the ring could be “close to the $1million mark.”

Another expert told the publication: “There’s no doubt that finding a fancy cut diamond of this size took lots of time and careful selection.”

Singing sensation Adele has been wearing the dazzling ring for over a year now, after she debuted it at the BRIT Awards in 2022.

Source: mirror.co.uk

How are diamonds priced ?

Diamond Colour is one of the 4c’s used to calculated diamond value

Polished diamond prices are derived from a variety of factors, including supply and demand, the quality and characteristics of the individual diamond, and market conditions.

The prices of polished diamonds are primarily determined by the 4Cs: carat weight, colour, clarity, and cut. These factors are assessed by gemologists and other experts who evaluate the diamond’s physical properties, such as its size, colour, clarity, and overall quality of cut.

Other factors that may influence the price of polished diamonds include the type of diamond, such as whether it is a natural or lab-grown diamond, the country of origin, and the overall market conditions for diamonds. Additionally, the reputation and credibility of the seller or the dealer can also affect the price of the polished diamond.

Overall, polished diamond prices are determined by a complex combination of factors, and can fluctuate over time based on changes in supply and demand, market conditions, and other economic and industry factors.
There is no single diamond price list that accurately reflects the prices of all diamonds. This is because the price of a diamond depends on a number of factors, including its size, shape, colour, clarity, and other characteristics.

That being said, there are various industry-standard diamond price lists that are commonly used as references by professionals in the diamond trade. These lists are typically based on a standardized grading system and provide price ranges for diamonds of different sizes, shapes, and quality grades.

The most commonly used diamond price list is the Rapaport Diamond Report, which provides a benchmark price for diamonds based on their 4Cs grading (carat weight, colour, clarity, and cut). However, it is important to note that the Rapaport price list only reflects the wholesale price of diamonds and may not necessarily reflect the retail price that consumers will pay.

Other diamond price lists include the International Diamond Exchange Price List, the Idex Diamond Price Report, and the Polished Prices Diamond Index, among others. These price lists may differ in their methodologies and grading systems, and the prices they list may vary slightly from one another.

Ultimately, when buying or selling a diamond, it is important to work with a reputable and knowledgeable diamond professional who can help you evaluate the diamond’s characteristics and provide you with an accurate price estimate based on current market conditions.
Source: Michael Cohen DCLA

How do I sell a diamond or diamond ring ?

Sell my diamond or diamond jewellery

Trading in or selling a diamond or diamond ring, typically involves finding a reputable diamond buyer or dealer who will purchase the diamond from you at a fair price. Here are some steps to consider when trading in a diamond:

Determine the value of your diamond: Before you approach any diamond buyer, it’s important to have an idea of what your diamond is worth. You can get an estimate by researching the 4 Cs of diamonds – carat weight, cut, clarity, and color – and comparing your diamond to similar ones online or in stores.

Find a reputable buyer: Look for a reputable diamond buyer or dealer who has been in business for several years and has a good reputation. You can check reviews online, ask for recommendations from friends or family, or visit your local jewelers to find a reliable buyer.

Get a diamond grading report: A diamond grading report is an independent evaluation of your diamond’s quality and characteristics. Having a grading report from a reputable laboratory like GIA, HRD. IGI, DCLA or AGS can help you get a fair price for your diamond.

Negotiate the price: Once you have found a buyer, negotiate the price based on the value of your diamond and the current market conditions. Be prepared to walk away if the offer is too low or doesn’t meet your expectations.

Complete the transaction: If you agree on a price, make sure to get a receipt or invoice for the transaction. You may also need to provide proof of ownership and identification.

Overall, trading in a diamond requires research, patience, and careful consideration to ensure that you get the best possible price for your diamond.

Call the DCLA for advice 02 92612104

When deciding on a diamond shape, this may help you.

 

Diamond cuts or shapes

Diamonds come in a variety of shapes and cutting styles, here are some of the most popular:

Round: This is the most popular diamond shape, accounting for more than 75% of all diamond sales. A round diamond has 58 facets and is designed to maximize its brilliance and fire.
Princess: This square-shaped diamond is a popular choice for engagement rings. It has pointed corners and is designed to sparkle brightly.
Cushion: Also known as a pillow cut, this diamond has rounded corners and larger facets that enhance its brilliance.
Oval: An elongated shape with rounded edges, oval diamonds are often used in solitaire engagement rings.
Marquise: This diamond has a pointed, football-like shape that can elongate the finger of the wearer.
Pear: Also called a teardrop shape, this diamond combines the round and marquise shapes and is often used in pendants and earrings.
Emerald: This rectangular-shaped diamond has step-like facets that create a unique visual appeal.
Asscher: Similar to an emerald cut, the Asscher cut is square with cropped corners and larger step-like facets that give it a unique vintage look. This cut has a pointed culet.
Radiant: A square or rectangular diamond with cropped corners and a brilliant cut.
Heart: As the name suggests, this diamond is shaped like a heart and is often used in pendants and earrings.

This is a sample selection of the most popular and traditional shapes. There are many more shapes and cuts.

Not all shapes are price the same:
The most expensive shape of a diamond depends on several factors such as the quality of the diamond, its carat weight, and the market demand. However, generally speaking, round brilliant cut diamonds tend to be more expensive compared to other shapes, all else being equal.

This is because round diamonds are the most popular and in-demand shape, and the manufacturing process to create a round diamond involves cutting away more rough diamond material than other shapes, resulting in higher wastage. Additionally, the round brilliant cut is designed to maximize the diamond’s fire and brilliance, making it a very desirable choice for many people.

However, the price of a diamond ultimately depends on its unique characteristics and the market demand at the time of purchase.

Diamond of the same exact weight can look very different depending on the proportions and the shape
Diamond shapes that have larger surface area or table size relative to their weight will generally appear larger for their carat weight.

Therefore, diamond shapes that have a shallow depth or a large table are likely to appear larger than other shapes of the same carat weight. Here are some diamond shapes that are known for appearing larger for their carat weight:
Pear-shaped diamonds: The elongated shape and pointed end of a pear-shaped diamond give the appearance of a larger diamond.
Oval-shaped diamonds: Similar to pear-shaped diamonds, the elongated shape of an oval-shaped diamond can make it appear larger than other shapes of the same carat weight.
Marquise-shaped diamonds: The football-like shape of a marquise diamond can also make it appear larger for its carat weight.
Princess-cut diamonds: The square shape of a princess-cut diamond means that it has corners, which can make it appear larger than a round diamond if not cut with a depth over 70%.
Emerald-cut diamonds: The step-cut faceting of an emerald-cut diamond can make it appear larger, even though it has a smaller surface area than other shapes of the same carat weight.

Source: Michael Cohen DCLA