Diamond Gems Weekly - December 23
And just like that, ‘tis the season’ shall soon become ‘twas the season’ ... and we’ll be asking odd questions like, “was it as good for you as it was for me?” Or simply, “how was it?” with the emphasis on “it,” and “it” being sales during the season. More appropriately, at this point, “it” is just simply the season. And you can get your head out of the gutter too...
Anyway, “how is the season for you?” feels a bit more personable, as it injects some emotion and sensitivity to the other person’s needs and wants. And takes us away from our obsession of counting sales.
So, I’ll take this opportunity to sincerely wish you all, dear readers of Diamond Gems Weekly (DGW), the happiest of holidays; be it Christmas, Hanukkah, Kwanzaa... or even Festivus, "a-festivus-for-the-rest-of-us.” If you don’t get the reference, I just completed the full marathon of all Seinfeld episodes from all seasons (there’s that word again). PS, that means, I’m open to binge-worthy recommendations to ease me into 2025. I also pledge that to be my first and last Seinfeld reference.
But I digress... May it (the season) elevate you spiritually, emotionally, and mentally, setting you up for unprecedented happiness and success in 2025.
Now that we’ve set our priorities straight, how was “it” in terms of sales?
>>> Independent jewelers noted a strong holiday so far - that was ahead of the final week before Christmas. Their positive feedback was driven by continued success with lab-grown diamonds and staples like diamond stud earrings, Instore Magazine reported.
>>> And this past weekend was set up to give a meaningful final push, as the National Retail Federation (NRF) projected some 157 million consumers would shop on Super Saturday, the final Saturday before Christmas.
>>> Now, as shopping winds down, so does the news flow. For us journalists, Christmas marks the start of the silly season; that time when we desperately search for stories to fill those barren news pages while you're sipping margaritas and burping off your latest barbeque. So keep an eye out for lists of the “most read,” “most liked,” “largest diamonds,” “best sales,” of 2024... you get the picture.
We’re not quite there yet though, as we got a flow of feedback about the rough market last week, confirming once again that caution reigns, despite the recent price cuts by De Beers.
>>> Petra Diamonds reported that prices on a like-for-like basis fell 7% at its December tender, compared to its previous sale in October. The miner noted some improvement in the 5- to 10.8-carat range of rough, while most other sizes were weak. Petra lowered its price assumptions for sales from its Cullinan, Finsch and Williamson mines for the remainder of the fiscal year ending June 30, 2025, and announced a round of retrenchments affecting support staff at its South Africa operations.
>>> Russian miner Alrosa saw its production down 4.6% to 33 million carats in 2024, Reuters reported, citing a statement by the government of the Yakutia region where most of its mines are located. In addition to the weak market, sales have been limited by G7 restrictions on Russian supply. Still, Yakutia is budgeting for a rise in taxes paid by Alrosa in 2025.
>>> And, it finally happened. International Gemmological Institute (IGI) debuted on the Bombay Stock Exchange at a 21% premium of its initial public offering (IPO) price. It was trading at around INR 482 per share at press time on Monday, with a market cap of some INR 208.43 billion ($2.5 billion). I’m still not convinced of the company’s business model, as I outlined in my blog: The Problem With Grading Lab Grown Diamonds. But that is some valuation...
>>> Oh, and in somewhat related news, this just in... Choron Group, which operates out of Dubai, acquired AMC Group, a Belgium-based manufacturer which supplies luxury brands and retailers in Asia and Europe. Choron will integrate AMC's facilities and expertise into its international network, enhancing its ability to source, manufacture and supply polished, the groups said in a joint statement. The deal for an undisclosed amount marks the first bit of merger and acquisition (M&A) activity in the midstream for some time.
Who knows, perhaps the IGI IPO and this Choron-AMC deal will set the ball rolling for further consolidation in 2025. The market is certainly ripe for it...
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