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Reduced Demand, Softer Prices at Diamdel’s July Auctions
Jul 19, 2012 11:07 AM
By Avi Krawitz
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RAPAPORT... Diamdel reported that buyer participation fell by about 10 percent in its latest round of rough diamond auctions as the trade became more cautious. Diamdel sells approximately 10 percent of De Beers production to Diamond Trading Company (DTC) sightholders and non-sightholders through its online auctions, Diamdel Days.
"The reduced demand, coupled with the fact that buyers attending our spot sales have a number of alternative purchasing opportunities, has led to a softening in prices,” Neil Ventura, Diamdel’s chief executive, told Rapaport News.
He explained that while buying in 2012 has focused on buyers taking advantage of the opportunity to obtain the specific lots they require, this trend continued in July, but with greater caution.
“Buying continues to be focused but buying has also become more cautious -- the average amount of money buyers are prepared to spend at our auctions has fallen in recent weeks,” he said.
Ventura reported that demand for grainer products has held firm, while interest in larger goods and 2-carat-plus categories has dropped. Diamdel’s small and near-gem sales are currently in progress.
Ventura stressed that prices at Diamdel auctions represent the price of the day for a single purchase and should not be compared to long-term supply prices. DTC sightholders have expressed dissatisfaction with De Beers prices governing their long-term supply contracts as the company reduced prices by an average of 3 percent at this week’s July sight.
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Tags:
Avi Krawitz, De Beers, Diamdel, diamonds, DTC, Rapaport
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