Diamond Gems Weekly - August 26.
Well, our collective breaths have been taken away by the second largest, gem-quality diamond the world has ever seen. That’s right, not since the recovery of the Cullinan diamond in 1905 has there been a diamond as large as the yet-to-be-named 2,492-carat blob of carbon that was found by Lucara Diamond Company at the Karowe mine in Botswana.
So what better place to begin our roundup of stories shaping the diamond market this week…
>>> The magnificent diamond made for the perfect photo op as Botswana President Masisi – an increasingly visible presence in the diamond trade – instinctively exclaimed “WHAT?” as the stone dropped into his hands. Watch that eye-popping moment here.
>>> Alrosa’s interim earnings results got me thinking. Diamond manufacturers are clearly buying Russian diamonds, despite the G7 sanctions, as the company reported revenue of some $2 billion in the first half of 2024. So why not disclose those goods as part of the industry’s drive toward transparency and traceability? I share my thoughts in the latest Diamond Minute video.
>>> Meanwhile, the US eased its restrictions on Russian diamonds by allowing for the import of grandfathered goods – i.e. Russian diamonds that were produced before the implementation of sanctions on March 1. It follows a similar move by the European Union in June. Read more about how the New September Rules Will Allow “Grandfathered” Russian Diamonds
>>> One US retailer that might take note of that development would be Brilliant Earth, given its focus on sustainably sourced jewelry. The company saw revenue decline 4% in the second quarter, despite its focus on environment, social and governance (ESG) issues. It’s the market, stupid, I guess is the message… I explore in this video.
>>> The Gahcho Kué mine in Canada is expected to produce 36.3 million carats in its remaining years, up from a previous estimate of 30.8 million carats, Mountain Province reported. Following a technical review, the life of mine was extended by one year to 2031. Mountain Province owns 49% of Gahcho Kué, with De Beers holding the rest.
>>> And now, a story we don’t hear too often in the diamond and jewelry trade; a public listing. The International Gemological Institute (IGI) filed for an initial public offering (IPO) in India. The grading lab, which Blackstone acquired last year for $570 million, saw revenue rise 30% to INR 6.39 billion ($76 million) in 2023, while profit rose 34% to INR 3.25 billion ($38.7 million).
>>> Finally, here’s what to keep an eye on this week: The Conference Board’s US consumer confidence indicator is set for release on Tuesday (August 27); Gem Diamonds 1H earnings on Thursday (August 29); and the University of Michigan’s consumer sentiment survey to be published on Friday (August 30).
Image: The 2,492-carat rough diamond recovered at the Karowe mine in Botswana. (Credit: Lucara Diamond).
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