De Beers’ sales fell at its February trading session as sightholders deferred demand to later in the year amid uncertain market conditions.
The second sales cycle of 2023 grossed $495 million, a drop of 24% from last year’s equivalent period, the company reported Wednesday. Sales were, however, 9% higher than January’s $454 million.
“We know that sightholders planned more of their purchases for later in 2023, given the economic uncertainty at the time they were taking their planning decisions at the end of 2022,” said Al Cook, De Beers’ new CEO. “It is also encouraging to see some positive trends in end-client demand for diamond jewelry at the start of the year.”
The total includes the company’s February sight as well as auctions. The company raised prices of its smallest diamonds for the contract sale, but mostly maintained rates for larger stones after January’s price decline, customers told Rapaport News.
De Beers’ rough revenues have fallen 28% year on year to $949 million for the first two sales cycles of 2023, according to Rapaport calculations based on the company’s sight reports.
State Department and European Commission Engage Diamond Industry to Discuss Next Steps on Russian Diamonds
Today, Ambassador James O’Brien joined Deputy Director General and Chief Trade Enforcement Officer Denis Redonnet of the European Commission to discuss with the U.S. and European offices of leading diamond retailers, manufacturers, laboratories, and industry trade associations the importance of the diamond industry’s engagement on future Russia-related import measures, including on polished diamonds, as noted in the recent G7 Leaders’ Statement.
Russia continues to earn billions of dollars from the diamond trade, and the discussion centered on the most effective and impactful ways to disrupt that revenue stream.
The United States and European Union remain committed to imposing economic consequences on Russia for its unprovoked war in Ukraine.
Diamonds are among the hardest natural substances on Earth, which means that they are very durable and resistant to damage. However, while diamonds themselves are difficult to damage but not impossible, the metal and setting that hold the diamond in place can be vulnerable to wear and tear.
If a diamond ring is worn regularly, it can be exposed to a range of environmental factors such as dust, dirt, and chemicals, which can dull the metal and damage the setting. Additionally, accidental impacts, knocks, or scratches can potentially cause the diamond to become loose or even dislodge completely from its setting.
Therefore, it’s essential to take good care of your diamond ring, keep it clean and dry, and avoid wearing it during any activities that could expose it to undue stress or impact. Regular professional inspections by a jeweler can also help to detect and prevent any potential issues that could lead to damage.
It is recommended to have your diamond ring checked at least once a year by a professional jeweler. During this checkup, the jeweler will inspect the diamond to ensure it is secure in its setting and that there are no signs of damage or wear and tear. They will also clean the ring to keep it looking its best.
If you wear your diamond ring daily or engage in activities that could potentially damage the ring, such as sports or heavy manual labor, it may be advisable to have it checked more frequently, perhaps every six months or so.
It’s also a good idea to check your ring regularly at home for any signs of damage or loose stones. If you notice anything unusual, take it to a jeweler for a professional inspection right away to prevent further damage or loss of the diamond.
See out list of recommended jewellers in your area.
India’s only diamond mine will put up to 84,000 carats a year
Majhgawan-Panna, India’s only diamond mine which was shot down at the end of 2020, will resume production in July 2023 “with a forecast output of up to 84,000 carats a year,” IDEX Online reports.
Majhgawan-Panna, located near the town of Panna in Madhya Pradesh, was closed after environmental clearances “lapsed following concerns from the nearby Panna Tiger Reserve.” Despite this, the National Mineral Development Corporation (NMDC), India’s biggest iron ore merchant miner, plans to resume work there.
According to the report, repeated concerns by the National Wildlife Board has caused mining at the mine to halt “stopped several times over the last 50 years.” In FY2021, the mine produced 13,681 carats.
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.
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.
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.
