The De Beers May sight had an estimated value of $600 million as the company raised its rough diamond prices by approximately 4 percent. The price hike reflected a change in list prices on various goods as well as adjustments made to De Beers box assortments.
Dealers noted that trading on the secondary market was significantly reduced following the sight that ended on May 9 as De Beers goods are now selling at around list price, erasing the 5 percent premiums they had gained in the past few months. One India-based sightholder noted that they were losing money on the secondary market when accounting for the various broker fees and other costs associated with the goods.
Most sightholders were frustrated by the sight and expressed surprise at the price hike as it followed an increase of approximately 3 percent implemented in April. Rapaport estimates that rough prices have increased by approximately 10 percent so far in 2013. In contrast, the RapNet Diamond Index (RAPI) for 1-carat certified polished diamonds has increased by only 0.3 percent, while RAPI for 0.30-carat stones has risen 9 percent this year, driven by strong Chinese demand for these goods.
From Rapaport. Check out the June Conference here.