We are conscious that the value of diamonds is ultimately driven by consumer demand and prior to the JCK Las Vegas show, we wanted to provide you with an update on the evolution of our average prices.
From January 2011 to January 2012, De Beers’ rough prices increased by an overall average of approximately 29% and average prices have subsequently increased in single digits in 2012.
As you may be aware, in 2012 DTC rough diamonds as a category have performed favourably compared with many commodity asset classes.
As you know, the DTC is in regular dialogue with our Producer Partners and with you; our valued Sightholders, to ensure our pricing remains competitive and sustainable in light of prevailing trading conditions.
Our goal continues to be the best proposition to our Sightholders, a key component of which is the provision of box consistency across an ITO period. As all of you are aware, it is widely anticipated that in the long term, demand is likely to significantly outpace what is forecast to be lower levels of rough diamond availability for many years to come.
Based on the economic fundamentals, the outlook for rough diamonds is therefore positive. I want to wish you lots of success for the remainder of this year and thank you for your valued support, input and partnership.
Author Mahiar Borhanjoo
Executive Director of Sales and Sightholder Services, DTC