Demand for rough diamonds is increasing. Rough traders are competing for goods, which has driven up prices of DTC goods over the past few days.
The DTC is holding its first Sight of the year this week, and buyers are reporting mid-single digit premiums. Some of the DTC boxes are selling to the secondary market at a 5-6 percent premium, according to one buyer.
A reported shortage for better quality polished goods is strengthening prices, leading to robust demand for rough.
According to initial reports, the assortment of boxes at the Sight are better, which is also boosting prices.
This is a turnaround from the recent sluggish market, when demand for DTC goods was often low and premiums either were in the low single digits or were nonexistent.
De Beers CEO Philippe Mellier last year expressed an interest in keeping DTC prices high. The growing premiums may therefore lead to a subsequent increase in the price the company charges for rough.