Market Comments 11/20/2009
Polished markets improving but buyers avoiding large inventory purchases ahead of Christmas. Continued restrictions of rough supplies by Russia and De Beers creating speculative rough price bubble that is destroying manufacturing profits. Rough tenders may increase as Rio Tinto drops five sightholders and Botswana develops secondary market in Gaborone. Sotheby’s Geneva sells $36.7m. (79% by lot), with Roxburghe Rubies going for $5.8m. Christie’s Geneva sells $32.3m. (82% sold by lot). Richemont 1H net profit -60% to $511m., group sales -15% to $3.6b., jewelry sales -14% to $1.8b. Bulgari 3Q net profit -70% to $10.4m., group sales -9% to $346m., jewelry sales -10% to $143m. U.S. Sept. polished imports -30% to $1.2b., polished exports -17% to $1b. India’s Oct. polished exports +17% to $1.5b., rough imports +34% to $608m.