The last reduced DTC sights will affect the global market

GIA Insider issued the industry analysis from senior industry analyst Russell Shor, where he researches the DTC Sights reflection to the total global market.
The June De Beers Diamond Trading Company (DTC) sight was similar to May’s total of about $525 million - demonstrating the company’s cautious approach to the current market and on-going shortages of supply as it continues mining on a reduced schedule.
This is the second sight operating under the DTC’s new flexible pricing policy. Prices, on average, held steady: some goods (mainly those polishing to SI clarity) were priced marginally higher; others (generally higher clarities) saw slight reductions. Previously, the DTC had a fixed price structure, though it had grown more flexible in recent years.
The smaller sights and reduced mining reflect the realities in the rough market - reduced bank financing; a decline in the exchange rate of the Indian rupee which eroded diamond manufacturers’ buying power; and Indian government currency exchange controls. This has reduced demand for rough substantially. Indeed, some sightholders reportedly deferred buying portions of their sights while the premium on nearly all DTC boxes has fallen to near zero.
While some industry executives believe these are positive developments in the long run - and reduce speculative buying and cut excess manufacturing - the short term remains difficult. Demand, even from growing markets such as India and China, has grown cautious and seems to have plateaued in the U.S.
At the last JCK show in Las Vegas dealers played cat and mouse on prices at the opening of the show, especially on larger stones, but they generally held firm after it became apparent that business would be slow. Dealers said they expected buying to be slower and pre-show prices reflected that caution.
Also, the analyst noted the excessive demand for investment gems from private buyers from Asia, particularly very large and rare colored diamonds.

Veronica Novoselova, Rough&Polished correspondent in Italy