SourcingNov 19, 2021
Rio Tinto’s Now the Sole Owner of Canada’s Diavik Diamond MineSourcingDec 01, 2021
Miners’ Year-Over-Year Sales Dip in October, November
Some question if the rough market is cooling off even as diamond jewelry sales to end consumers remain strong.
De Beers Group’s rough diamond sales were down 7 percent year-over-year in its latest sales cycle (Nov. 8-23) while Alrosa saw rough and polished sales slip about 1 percent in October. (© De Beers Group/Photo credit: Ben Perry @ Armoury Films)
New York—The industry’s two largest diamond miners both recorded year-over-year declines in sales recently, an indication, some say, that the recently red-hot rough market might be slowing down.
In the ninth sales cycle of the year (Nov. 8-23), De Beers Group moved $430 million in rough diamonds, down 7 percent year-over-year—its first year-over-year decline of 2021—and down 13 percent from $492 million in the previous sales cycle.
De Beers CEO Bruce Cleaver attributed the slowdown to cutting factory closures in India on and around the Diwali holiday (observed Nov. 2-6). De Beers also noted that factories in India chose to have shorter Diwali breaks in 2020 to take advantage of the market recovery.
He projected the slowdown would continue into sales cycle 10, the final sales cycle of the year, as factories in South Africa shutter for Christmas.
However, in a post on LinkedIn, industry analyst Edahn Golan questioned if De Beers’ cycle 10 slowdown is a signal the rough market is cooling off, not a Diwali-related drop-off.
In the ninth sales cycle of the year (Nov. 8-23), De Beers Group moved $430 million in rough diamonds, down 7 percent year-over-year—its first year-over-year decline of 2021—and down 13 percent from $492 million in the previous sales cycle.
De Beers CEO Bruce Cleaver attributed the slowdown to cutting factory closures in India on and around the Diwali holiday (observed Nov. 2-6). De Beers also noted that factories in India chose to have shorter Diwali breaks in 2020 to take advantage of the market recovery.
He projected the slowdown would continue into sales cycle 10, the final sales cycle of the year, as factories in South Africa shutter for Christmas.
However, in a post on LinkedIn, industry analyst Edahn Golan questioned if De Beers’ cycle 10 slowdown is a signal the rough market is cooling off, not a Diwali-related drop-off.
Cleaver said De Beers expects to see “positive conditions” for the industry in the new year following what’s expected to be a strong holiday season for diamond jewelry sales.
Year-to-date, De Beers’ rough diamond sales total stands at $4.48 billion, up 89 percent from $2.36 billion in the same period last year, though it is worth noting De Beers had one less sales cycle in 2020 because of the pandemic.
Compared with year-to-date 2019 ($3.6 billion), De Beers’ sales are up 24 percent.
In October, Alrosa’s diamond sales totaled $308 million ($293 million in rough and $15 million in polished), a slight dip when compared with $310 million in diamond sales in October 2020. This is the second month in a row the miner has recorded a year-over-year decline in monthly sales.
Alrosa’s October sales were, however, up 3 percent from September’s total of $298 million.
Year-to-date, the miner has sold $3.58 billion in rough and polished diamonds, 89 percent ahead of where it was at this point last year.
Deputy CEO Evgeny Agureev said jewelry demand continues to increase by double digits in key markets, a trend both retailers and cutters see continuing through the end of the year, while rough diamonds remain in short supply due to cuts in diamond production.
It’s an imbalance Alrosa said it aims to correct, while keeping in mind the health of the mid-stream.
“As end consumer demand for natural diamond jewelry remains high, Alrosa aims to gradually restore the supply and demand balance, despite the limited capacities to increase production,” he said. “At the same time, we are committed to our policy of selling rough diamonds only against actual demand.”
More on Sourcing
The Latest
TrendsDec 08, 2023
Pantone’s Color of the Year Is Warm and FuzzyThe peachy hue also marks the program’s 25th anniversary.
AuctionsDec 08, 2023
Sotheby’s Sold All Mary Tyler Moore’s JewelryThe 21 pieces up for auction, including Tiffany & Co. jewels and a Cartier watch, garnered more than $430,000 across two sales.
CollectionsDec 08, 2023
Piece of the Week: A ‘Strong & Precious’ Brooch Centered on a sunny heliodor, the “Links” pin was designed by Ukrainian jewelry artist Inesa Kovalova.
Brought to you by
The Most Important “C” in Diamonds: Confidence!Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.
MajorsDec 07, 2023
Lashbrook Sues Manly Bands for Allegedly Copying Designs The wedding band company is also accusing its former customer of removing watermarks from Lashbrook images for its own use.
Weekly QuizDec 07, 2023
This Week’s QuizTest your jewelry news knowledge with this short test.
Policies & IssuesDec 07, 2023
The G7’s Long-Awaited Statement on Russian Diamonds Is Here It provides a timeline for the implementation of new restrictions, but no details.
MajorsDec 07, 2023
24 Karat Club of New York Welcomes New MembersThe organization has elected 12 new additions.
Brought to you by
If It’s Custom, Make It PlatinumWith holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.
ColumnistsDec 06, 2023
On Data: How Are Independents Doing So Far This Holiday Season? Sherry Smith breaks down the numbers on jewelry sales in November and reveals the category that “emerged as a standout.”
AuctionsDec 06, 2023
A Yellow Diamond, Hollywood Jewels Stand Out at Sotheby’s Additional lots will be offered in the Fine Jewels online sale through Dec. 7.
GradingDec 06, 2023
GIA Debuts Revamped Graduate Jeweler ProgramBy mixing creative and practical skills, the new course hopes to fill the industry’s bench jeweler gap.
AuctionsDec 06, 2023
Verdura Cuff, Burmese Sapphire Shine at Bonhams Several other colored gemstones joined the pieces in the top 10 list.
FinancialsDec 05, 2023
Signet Jewelers’ Q3 Sales Down 12% The retailer is still expecting a strong holiday season with improving demand for natural diamonds.
CrimeDec 05, 2023
Police Continue to Investigate Murder of Colorado Jeweler Peter Damian Arguello, the owner of Peter Damian Fine Jewelry & Antiques, was shot and killed in an apparent robbery last week.
MajorsDec 05, 2023
Tanishq Continues U.S. Expansion With 2 New StoresThe Indian jewelry giant has opened locations in Houston and Frisco, Texas.
WatchesDec 04, 2023
Chrono24 Debuts the ‘Dow Jones’ for Luxury WatchesThe watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.
MajorsDec 04, 2023
David Bouffard to Leave Signet, RJCThe industry veteran will step down from both roles in April 2024.
TrendsDec 04, 2023
Amanda’s Style File: Decadent DecemberTanzanite, turquoise, and zircon are all options for December babies, who sometimes “get the birthday shaft,” Amanda Gizzi writes.
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany ExecThe lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.
FinancialsDec 01, 2023
Movado Lowers Guidance Again After Q3 Sales DipThe company said it is facing a “challenging retail environment” but is prepared for the holiday season.
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond NecklaceIt’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong KongThe 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.
MajorsNov 30, 2023
Claire’s Hires Former Bath & Body Works Exec as CFO, COOChris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow DiamondThe stone headlining the upcoming sale could fetch up to $5 million.
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ ProgramThe retail offering lets customers track their diamond’s journey.
SourcingNov 29, 2023
Largest New Diamond Mine of the Decade Coming Online in Angola The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.
SurveysNov 29, 2023
Holiday Shoppers Broke a Record This Weekend, Says NRFFrom Thanksgiving through Cyber Monday, 200.4 million consumers shopped online and in stores.
