Diamond Circle Capital, a diamond investment fund, informed shareholders today that diamond trading momentum has been soft all year. The company's board of directors did, however, sell one diamond from inventory during January to improve its cash position and it made a 10 percent profit on the transaction, according to an interim management statement filed with the London Stock Exchange.
Trading at the dealers' level came to a ''virtual halt'' as of April and thus, the company opted to retain its relatively high cash position, which will enable the diamond fund to take advantage of a ''meaningful opportunity whenever that arises,'' the company stated.
Even though market liquidity has been tight, Diamond Circle Capital reported that its net asset value increased slightly from January to April for a gain of 0.69 percent. ''This out-performance, albeit slight, ultimately reflects the price strength of top-quality fancy colored stones,'' the company concluded.
Diamond market sentiment remains ''constructive overall,'' based upon the Hong Kong and Basel trade shows in spring, coupled with only cautious supplies coming out of De Beers and other major producers, the company stated.
''All in all, trade may well be disappointingly sluggish at dealers' level, but the market still clearly demonstrates an underlying strength and stamina,'' according to the statement.