Sightholders' Eye on Supply
Diamonds Gems Weekly - October 14
Somehow, I find myself writing in an airport again. After years scribbling final copy in obscure places, I promised myself the luxury of time. But old habits die hard, and I’m forced to embrace the joys of an impersonal departure hall, with surprisingly friendly Wi-Fi connection. We take our wins.
I will forgive myself for the last-minute rush this time, though, considering the somewhat disruptive week that just passed.
That included the Yom Kippur fast, a mini obsession with Shirley Bassey (and her jewels) about which I felt compelled to do a video (and sing), and revelations about De Beers’ plans to ditch sightholders, which I wrote up as an exclusive. Not to mention the war raging in my hometown that sent me running for cover at the most inconvenient moments.
So here I am putting the final touches on this Diamonds Gems Weekly while in transit at Addis Ababa airport, sipping on some rather delicious Ethiopian coffee halfway between Tel Aviv and Johannesburg.
With that said, here are the stories I’m reflecting upon heading into the new week:
>>> De Beers informed sightholders that some of them will lose their status when the next contract period begins in 2026. The company will consider sightholder purchases over the next year among the criteria required to secure a spot. The message, and its timing, has raised some eyebrows, as I discuss in my latest blog: De Beers Plans to Cut Sightholders.
>>> Manufacturers have reduced their rough buying as the trade seeks to reduce polished inventory. However, prices continue to decline due to an oversupply of goods, according to Rapaport: Diamond Prices Decline in September
>>> Fancy color diamonds have performed better than colorless stones, demonstrating Overall Stability with Moderate Declines in 3Q, according to the Fancy Color Research Foundation.
>>> India’s retail jewelry environment continues to offer hope for the industry, with rising optimism for the Diwali festival. Brands are leading the charge with Titan Company reporting jewelry sales grew 26% year on year in the second quarter ending September 30. Gold demand drove the increase, while the solitaire segment saw a decline amid price uncertainty and the demand-supply dynamic in the international markets, Titan said.
>>> Ahead of the US holiday season, the focus is increasingly on the industry’s marketing efforts, or lack thereof, or simply its potential. The Sotheby’s auction of jewelry from Dame Shirley Bassey’s collection stirred some nostalgia for me, and for the industry as well, as I discuss the legacy of Diamonds Are Forever in my latest video.
>>> This week we begin earnings season with LVMH scheduled to publish its 3Q revenue update on Tuesday (October 15) and Rio Tinto providing its 3Q operations review on Wednesday (October 15).
Image: Dame Shirley Bassey auctioned 80 pieces of jewelry at Sotheby's last week. (Credit: sothebys.com)
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