Diamond Gems Weekly - October 21
Earnings season has begun. For my fellow diamond and data geeks that means we’ll be getting the lowdown on what’s happening in the market from public companies in the mining and retail sectors. Already, we have gained new insights from the likes of Rio Tinto, Mountain Province, LVMH and Luk Fook Holdings.
It all felt very familiar, with the drop in retail sales demonstrating continued weakness in China, and further declines in mining production.
These trends highlight the importance of stimulating demand, especially over the holiday season. That brings us to the most important story of the week as De Beers and Signet Jewelers rolled out their joint marketing / ad campaign.
So, let’s get to business… these were the stories that shaped the diamond market in the past week:
>>> Watch the De Beers-Signet “Worth the Wait,” ad.
>>> I’d love to hear what you think of the campaign. I was somewhat positive in my video response, even if I wasn’t blown away by the clip. It did give me pause to consider: Was this the Diamond Ad We’ve Been Waiting For?
>>> I also give my two-cents worth about Rio Tinto, whose diamond production is down, but not out. Keep an eye on the company’s Beyond Rare Tender of color diamonds from the now-shuttered Argyle mine. The tender includes the Colour Awakened collection, headlined by seven “Old Masters”, notable historic diamonds from the Argyle Diamond Mine.
>>> Meanwhile, Mountain Province reported sales rose 12% to $50.8 million in the third quarter even as the rough market was “unsettled by continued price decreases announced by leading polished diamond price indices.” The company sold higher volumes, while the average price achieved fell 21% to $75 per carat.
>>> De Beers announced that its Tracr diamond traceability platform will list single country of origin for all newly registered De Beers-sourced diamonds over 0.50 carats in polished size from the start of 2025.
>>> Hong Kong-based retail jeweler Luk Fook reported group sales fell 16% year on year in the second fiscal quarter that ended September 30. Diamond sales slid 52%. The weak macroeconomic conditions in mainland China and the new highs in gold prices affected the overall slump, the company said.
>>> In contrast, LVMH noted a strong growth in spending by Chinese customers in Europe and Japan. Jewelry sales fell 4% to EUR 2.39 billion, the company reported.
>>> Some noteworthy trends in lab-grown diamonds, with Edahn Golan, of data analytics company Tenoris, observing that an inventory issue is brewing at retail. In the past year, the number of lab-grown diamonds held in inventory by retailers increased 30%, while unit sales increased just 9%, according to Tenoris .
>>> Well worth watching this discussion on the challenges of appraising lab-grown diamonds, facilitated by National Jeweler.
Image: Diamonds that will be on offer at Rio Tinto's Beyond Rare tender. The sale will comprise 48 lots made up of 76 diamonds, weighing a combined 39.44 carats. (Credit: Rio Tinto).
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