Diamond Circle Sells Remaining Inventory for $36M

Diamond Circle Capital Plc described the diamond market as ''clearly bearish''  since the end of the first quarter of 2012, however, it was able to complete the sale of its portfolio of investment diamonds this past month, Rapaport reported. Net aggregate proceeds after commissions and costs amounted to $36.4 million for 11 remaining diamonds, against a carrying value of $44 million, according to the board's statement. The board will now prepare to liquidate the diamond investment company as approved by shareholders in July.
The board told investors that from a ''macroeconomic perspective, the absence of substantial job creation in the U.S., the weak spot in Chinese growth, and seemingly endless worries over fiscal imbalances in the eurozone resulted in overall risk aversion from diamond investors and dealers alike.''
That risk was further compounded by the fact that rough prices remained ''stubbornly out of sync'' with prices for polished goods, according to the board. Additionaly, the inability of India's rupee to rebound from all-time lows against the dollar, mechanically weighed on final demand for diamonds, according to the group.
Shareholders voted in favor of selling existing diamond inventory during its extraordinary general meeting on July 12.