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Avi Krawitz

Shaky Market And Other Major Diamond Developments

Diamond Gems Weekly - October 7


To start on a personal note, my thoughts and prayers are with the hostages, victims and their families of the tragic events of October 7, 2023. May we soon see light through the darkness that has affected so many in the past year.     

 

Here are the stories shaping the diamond market as we begin the new week:

 

>>> Two weeks ago Diamond Gems Weekly ran with the headline, Surprisingly Positive Outlook, for which I received some pushback. How is it positive given the current weak sentiment? Well, it all depends on the context, as I explain in the latest video, Good or Bad Diamond Prospects.



>>> Indeed, market sentiment is shaky, and the industry is facing major challenges. Martin Rapaport gives his take on the crisis in his article titled, Natural Diamond Markets.

 

>>> Of course, the most effective way to lift the industry is to stimulate demand. With its mandate to spread the good word about natural diamonds, the Natural Diamond Council (NDC) released its Diamonds of Canada report. The study is the first of a series of reports the NDC is planning about the impact of diamond producing regions, as well as diamond trends and facts. 

 

>>> The big retail story of the past week was the announcement by Signet Jewelers that CEO Gina Drosos would be stepping down in November. While I had a gut feel about this one, she explains the decision to JCK Online’s Rob Bates: see Signet CEO Gina Drosos on Why She’s Retiring

 

>>> There have been some minor developments in the mining segment. They’re worth noting given the difficulty that producers are facing to impress investors in the current market environment:  

 

>>> Petra Diamonds closed its sale of the Koffiefontein mine to an affiliate of the Stargems Group;

 

>>> Lucara Diamond Corp. sold the Clara Rough Diamond Sales Platform to its original founders for $3 million plus some Lucara shares. That group includes former CEO Eira Thomas, who oversaw Lucara’s acquisition of Clara and touted the platform as a timely disruptor of the way rough diamonds are sold. While that never materialized, perhaps it can live up to that hype under its new, old management. That’s especially given Lucara retains a 3% profit interest in Clara and will continue to supply a portion of its production for sales on the platform.

 

>>> Meanwhile, I’ll just drop some recommended reading for your spare time, in case you missed these gems:

 

>>> I thoroughly enjoyed The Thrilling Story of the Second-Biggest Diamond in the World (speaking of Lucara);

 

>>> And while it was published a few weeks ago, it’s never too late to revisit the talented Grant Mobley’s account Inside the Green Vault Diamond Heist and the Hunt That Followed. PS, the NDC portal – www.naturaldiamonds.com – is a somewhat under-rated source of diamond content. You should be aware of it.  

 

>>> To close this chapter of Diamond Gems Weekly, it’s worth noting some interesting auctions coming up this week, including:

 


Image: The three stones that make up The Gem Drop auction at Sotheby's New York. (Credit: sothebys.com).

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