Diamond Gems Weekly - November 4
I sure hope you all had a relaxing weekend and a fabulous Diwali festival for those who celebrate!
I’ll be heading east soon to attend the Dubai Diamond Conference taking place next Monday, November 11. I’m excited to moderate the first panel discussion, which will highlight the most pressing issues affecting the diamond market.
Panelists include Robert Wake Walker, of WWW International Diamond Consultants, Pranay Narvekar, a partner at Pharos Beam Consulting, and Anshul Gandhi, CEO of Choron Group. Yip, the brainpower is real and each brings a unique perspective about the diamond market.
See the full conference program here: Thriving Under Pressure – Navigating the New Global paradigms.
I’m looking forward to seeing old friends and members of our community there. Don't be shy, say hi.
And now, here’s the news you need to know as we begin the week:
>>> The Botswana elections delivered a bombshell result, ushering in a new ruling party for the first time since the country gained independence in 1966. The government will be led by Duma Boko, a Harvard-educated rights lawyer. He replaces Mokgweetsi Masisi who burst onto the scene as an eloquent advocate for natural diamonds, but got embroiled in prolonged negotiations with De Beers over the company’s marketing and mining agreements with the government. I examine Masisi’s Diamond Legacy in my latest blog post.
>>> We now look forward to the next important election of our time, I think...
>>> November marks the start of the holiday shopping season. Wait, did I say that about October, as shopping apparently keeps getting earlier? Regardless, retailers measure holiday sales based on the November-December period. And we are seeing some positive trends in the jewelry sector. The Edge Retail Academy reported gross sales among independent jewelers grew 15% in October. Diamond categories were up 12% resulting from a 10% rise in units sold and 18% growth in the average retail sale.
image credit: Canva.com
>>> But there remain deep concerns about the state of the diamond market. In a letter to bourse members, Yoram Dvash, president of the World Federation of Diamond Bourses (WFDB), called on the trade to invest in marketing. He wants to see a 5-year plan to promote diamonds, rather than short-term initiatives “when the situation is particularly dire.”
>>> India’s diamond trade has shut for Diwali. Sales offices typically close for a week or two, while factories pause for a bit longer – often up to a month, depending on the state of the market. Manufacturers have curbed production to reduce polished inventory and restore some balance between supply and demand. There are signs the wholesale market is stabilizing, after India’s rough imports fell 32% year on year in the third quarter to $2.36 billion – their lowest level since the pandemic (see graph).
Based on monthly data published by the Gem & Jewellery Export Promotion Council (GJEPC).
>>> Caution in the rough market continues to weigh on the mining sector. Burgundy Diamond Mines, owner of Canada’s Ekati mine, reduced its revenue guidance for the year as it expects weak rough demand and soft prices to persist through the fourth quarter. The company expects full-year revenue of between $430 million and $460 million, compared to its previous outlook of $460 million to $500 million.
Image: Aerial view of the Ekati mine (Credit: Burgundy Diamond Mines).
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