Trans Atlantic Gem Sales (TAGS) has summarized the results of its diamond tender held in Dubai at the end of August.
More than 200 lots were presented, 80% of which were sold to more than 50 companies representing all the leading manufacturing centers. TAGS noted “successful sales across the entire size range,” including 3-6 grs and 2-4 cts, which have been in less demand in recent months.
“We welcomed about 150 international manufacturers during the week, and on several days had record attendance,” they said in a press release.
According to the company, many smaller companies had two weeks’ worth of stock left, so factories faced with the dilemma of either stopping production for the long holiday period or finding a source to maintain it. As a result, Dubai was flooded with companies looking for rough in foreign markets.
Against this backdrop, on August 30, the Rapaport Diamond Report, the oldest and most widely followed diamond price indicator, chose to reduce polished prices both for rounds and fancies by 2% - 7%.
In Dubai, where tenders were nearing their conclusion, this triggered a flurry of activity as buyers tried to recalculate bids. Because of this excitement, TAGS and other tender houses extended the auction hours.
Overall, TAGS acknowledges the conservation challenges that the diamond industry has faced in recent months. “Ongoing global uncertainty, coupled with the malaise of the Chinese market and the effect of LGD on swathes of the American consumer market, continue to take their toll on rough markets around the world,” the company said.
After weeks of special holidays in India and factory closures, the industry is faced with the need to replenish stocks. The balance between tighter rough supplies, high levels of finished stone inventory and weakening consumer demand in leading consumer markets will continue to persist in this process. Diamond prices have continued to decline over the past few months, but have shown some stability following De Beers’ announcements to launch promotions with major jewellery brands. In the US, in particular, jewellery sales in the US grew 6.5% year-on-year in July. The recent IIJS show in India also demonstrated strong jewellery demand in the overseas market.
The next tender will be held on September 16-20.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
