Fancy Color Diamond Prices: First Drop in Almost Four Years

Fancy yellow cushion cut diamond

The Index tracking fancy color diamond prices fell during the last quarter, for the first time in almost four years.

The Fancy Color Diamond Index, which monitors pricing data for of all sizes and intensities of fancy color diamonds, fell by 0.7 per cent during Q2 2024, according to an update published yesterday (30 July) by the Fancy Color Research Foundation (FCRF).

The last recorded fall was back in Q3 2020 – in the depths of the Covid crisis – when the Index also fell by 0.7 per cent. That came after two quarters when sales were too slow for the FCRF to produce figures at all.

The trend over the last year or so has been of slower growth. The Index was up 1.3 per cent in Q1 2023, followed by +0.5 per cent (Q2); +0.4 per cent (Q3); +0.1 per cent (Q4) and +0.1 per cent (Q1 2024).

The New York-based FCRF played down the Q2 dip, describing it as “a minor fluctuation when compared to broader market movements”.

It said in a statement: “This stability is particularly evident relative to the sharper declines in the white diamond market and the Dow Jones index, which fell by 3.6 per cent and 1.7 per cent respectively during the same period.

Yellow diamonds (all sizes, all intensities) suffered the biggest drop, down 1.7 per cent. Pinks and blues were both down 0.3 per cent.

The FCRF said its Index had enjoyed an overall increase of 211 per cent since it began compiling data in 2005. During that time it said the price of yellow diamonds had risen by 56 per cent, pinks by 398 per cent and blues by 248 per cent.

Source: DCLA

Botswana’s diamond market suffers major blow as sales drop by 49% in first half of 2024

According to Botswana’s central bank data, sales of rough diamonds at Debswana Diamond Company fell by 49.2%, amounting to $1.29 billion compared to $2.54 billion in the same period last year.

In local currency, sales of rough diamonds decreased by 47.3% to 17.555 billion pula compared to the same period last year.

This decline in sales is a major blow to the South African nation, which derives 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from sales of rough diamonds.

The report highlighted the downturn in the global diamond market as the primary reason for this sharp decline.

In response to the weak consumer demand, Anglo American cut its diamond production by 19% in the first six months of the year.

The report highlighted the downturn in the global diamond market as the primary reason for this sharp decline.

Botswana derives 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from sales of rough diamonds.

The Debswana Diamond Company is a joint venture between the government of Botswana and Anglo American Plc’s De Beers. Anglo American Plc’s De Beers sells 75% of its output to De Beers, while the balance is taken up by the state-owned Okavango Diamond Company.

Despite the current economic challenges, Botswana and De Beers signed a ten-year diamond sales agreement in June.

This deal will gradually see the share of Debswana’s output sold by the state-owned company increase from 25% to 30% before it goes up to 40% in five years and eventually 50% by the end of the new contract.

According to the key points in the agreement, this strategic move aims to boost Botswana’s revenue from its diamond resources.

Source: africa.businessinsider

Rio Tinto’s Diavik Mine Slides into the Red

Rio Tinto today reported a slump in half-yearly sales and production as its Diavik diamond mine in Canada slid into the red.

The Australian mining giant reported a 15 per cent increase in overall profits across all divisions to $5.8bn for the six months to 30 June, but its diamond operation suffered a $65m loss. During the same six months of 2023 it made a $44m profit.

The Half Year Results made passing mention of “lower volumes” of diamonds, but chief executive Jakob Stausholm offered no explanation.

Revenue from diamond sales was down 40 per cent during H1, from $250m to $149m. Production fell 25 per cent, from 1.924m carats to 1.441m carats.

Earlier this month the company said production at Diavik had fallen by by 28 per cent during Q2, impacted by the transition to underground operations and the plane crash in January that killed four of its workers and two crew members. A chartered Jetstream twin turboprop airliner crashed shortly after take-off from Fort Smith Airport.

Source: DCLA

Tiffany "Losing Staff to New Sales Targets"

Tiffany & Co is reported to be losing staff after setting unachievable sales targets.

Employees at the flagship Fifth Avenue store – newly rebranded as The Landmark – have received lower commissions as a result and many have moved elsewhere, according to sources who spoke anonymously to Fashion Network.

The fashion news website says staff at The Landmark, which generates 10 per cent of all Tiffany revenue, were set a $60m sales target for December 2023, compared to $30m the previous year.

Before the LVMH acquisition of Tiffany, for $16bn in 2021, monthly targets were typically increased by 5 per cent or 10 per cent.

Employees at The Landmark reportedly sold $50m last December. A hefty increase on 2022, but not enough to meet the company’s target.

Tiffany has also been falling short of the $25m monthly targets set for Q1 of 2024, according to the Fashion Network report.

It said some employees claimed they’d been told three quarters of the store’s 350 staff had left in a year.

A Tiffany spokesperson said earning for its top 20 client advisors were up by as much as 75 per cent on the previous year.

Source: DCLA

Lucapa recovers 176 carat diamond at Lulo mine in Angola

Lucapa Diamond announced Monday the recovery of the fifth +100 carat diamond found this year, a 176 carat Type IIa gem diamond from the Lulo alluvial mine in Angola.

The 176 carat diamond is the 45th +100 carat stone to be recovered from Lulo and the eighth largest, since alluvial operations began in 2015, the company said.

In 2021, Lucapa announced a 35% increase in the resource carats at Lulo, and the mine’s in-situ resource now sits at 135,900 carats at a modelled average diamond value of $1,440/carat.

The continual recovery of these and other large, high value diamonds has been a major source of revenue for Lulo over the years – in December 2023 Lucapa fetched $17 million for four diamonds recovered from Lulo – as well as being a major informant to the kimberlite exploration program.

Lucapa continues to hunt for the source of these large gems via the kimberlite exploration program which is currently bulk sampling kimberlitesin close proximity to the mining blocks where the 176 carat diamond was recovered.

“The recovery of this 176 carat diamond is yet more confirmation of the massive potential of the kimberlite province where we are focussing our exploration efforts to find the source(s) of these magnificent gems. As can be seen from the image below, the diamond has not travelled far as it still displays sharp, angular edges,” Lucapa CEO Nick Selby said in a news release.

The firm has a 40% stake in Lulo, which hosts the world’s highest dollar-per-carat alluvial diamonds. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Source: DCLA

Lucapa concludes special tender worth $12m

Lucapa Diamond Company has sold six diamonds recovered from the Lulo mine, in Angola, in a special tender for $12.4-million.

The diamonds totalled 447 ct and consisted of five white Type IIa diamonds, as well as a pink diamond.

The average price per carat was about $27 700.

MD and CEO Nick Selby deems the tender result pleasing. “Our alluvial project, in Angola, continues to deliver fantastic diamonds that are always in demand through all market cycles and achieve very competitive values.”

Source: DCLA

Another Hefty Drop for India’s Diamond Exports

India’s exports of polished diamonds suffered another hefty drop in June, down 26 per cent year-on-year to $1.02bn.

Foreign sales in May were down by almost 15 per cent to $1.47bn, according to new figures from the GJEPC (Gem and Jewellery Export Promotion Council).

Polished diamond exports have fallen every month this year, down 20 per cent in January, 28 per cent in February, 27 per cent in March and 17 per cent in April.

Gross imports of rough diamonds for April to June dropped by 15 per cent by value to $3.39bn and 6 per cent by volume.

Overall exports of all gems and jewelry declined by 15 per cent in June to $1.9bn.

Source: DCLA