Diamond Gems Weekly - September 30
VicenzaOro unleashes creativity, the Hong Kong show proves predictably dreary, De Beers resumes its rough sales, others cancel theirs, lab-grown grading comes under scrutiny, along with IGI’s IPO plans, and the Magnificent Jewels Auctions return. Just don’t mention the polished trade – fine, it seems stable if a little uninspired.
That pretty much sums up the diamond market on this final day of September. Yes, now the fourth quarter begins, which means it’s time to market until we sell... you get the difference, right? marketing versus sales?
Anyway, you know why we’re here: these are the major stories shaping the diamond and jewelry market heading into the new week:
>>> I’m writing this shortly after publishing a blog post on The Problem with Grading Lab-Grown Diamonds. It’s a contentious topic that has been whispered about before but came front and center in the recent prospectus published by International Gemological Institute (IGI) ahead of its proposed public listing. See also Lab-Grown Diamond Grading is Becoming Its Own Thing by JCK Online’s Rob Bates, and Does In-Factory Grading Help IGI Achieve Huge Margins? from the pen of Rapaport’s Joshua Freedman.
>>> As I’ve mentioned before, its now crunch time for marketing natural diamonds. It appears the industry has raised its game ahead of the holiday season. But will the efforts of De Beers, the Natural Diamond Council, top-tier jewelers and the luxury brands revive demand? My latest video notes there’s much at stake with The Return of Diamond Category Marketing.
>>> The rough market remains a somewhat flimsy. De Beers reportedly kept prices steady but allowed for sightholder flexibility at its September sight, which replaced the August and October sales.
>>> Burgundy Diamond Mines, owner of the Ekati mine, has requested support from the government of the Northwestern Territories as it struggles to navigate current market conditions.
>>> Okavango Diamond Company (ODC), Botswana’s state-owned rough trader, cancelled its second consecutive sale amid ongoing weakness in demand, Rapaport reported.
>>> Quick public service announcement… if you, like me, weren’t able to attend the VicenzaOro show, don’t despair. You can catch all the presentations outlining the jewelry trends shaping the market from its seminar, curated by the ever curious Paula De Luca. See Wonderland: Co-Creating the Future of Luxury and Jewelry.
>>> A few things on the go this week but keep an eye on the auction circuit. Sotheby’s Hong Kong hosts its Magnificent Jewels Sale on Wednesday. Leading the diamond offerings is this spectacular 67.20-carat, fancy vivid yellow, VVS2-clarity diamond and diamond ring which is expected to fetch between HKD 28 million and HKD 39 million ($3.6M to $5M).
Image: The 67.20-carat fancy vivid yellow diamond at Sotheby's Hong Kong. (Credit: sothebys.com).
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