Diamond market overview
Traders continued to report positive sentiment in the polished market. There was good demand in the main US market, mainly driven by retailers restocking for the summer season, traders said. The annual Baselworld watch and jewellery fair, which runs from March 27 – April 3, will be closely watched as an important barometer for luxury brands showcasing their latest product ranges to buyers from around the world. The main PolishedPrices index strengthened throughout the week, opening at 147.62 on Friday, from Monday’s opening at 146.65 points.
Rough diamond market
There were reports over the past week that demand in the rough market has eased. Tighter liquidity and high inventory levels in the cutting centres are said to be the main reasons for the slowdown in rough dealing activity. “The rough market is much calmer, due to credit limitations and because manufacturers have bought heavily in the first three months of the year,” said one trader in Antwerp. The main focus is on the De Beers’ sale or sight this coming week.
Corporate and events
De Beers, the world’s largest diamond miner by market value, hopes to obtain a concession to explore in Angola by the end of this year, chief executive Philippe Mellier said, Reuters reported. The London-based company, majority-owned by global miner Anglo American, is also holding initial talks with India about exploring in some areas in the centre-north of the country, according to the Reuters report.
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Gem Diamonds Ltd’s full-year underlying core earnings rose 18 percent benefiting from higher diamond prices in 2013, Reuters reported. Underlying core earnings or earnings before interest, tax, depreciation and amortisation (EBITDA) increased to $77 million for the year ended Dec. 31 from $66 million a year earlier. Revenue grew 5 percent to $213 million, according to the Reuters report. Tiffany & Co., the world’s second-largest luxury jewelry retailer, forecast annual profit that fell short of estimates as the company increases spending on its information-technology systems, Bloomberg reported. While the expenditures will weigh on profit, the New York-based company said it expects worldwide sales to grow in the high single digits in percentage terms this year. Capital spending will jump 22 percent to $270 million as the 176-year-old company upgrades its technology, according to the Bloomberg report.
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Picture Tiffany & Co.