During De Beers’ Sight last week, the company raised prices by 2-4% on average, according to traders. Sightholders that chose to sell rough diamonds from the Sight reportedly sold them for higher premiums. Premiums on 4 grainers (1 carat rough diamonds) and larger are up to a reported 8%-15%. Some goods are selling for list price, or up to 3% above list price. With few exceptions, the rough diamond market is generally strong - some even described it as “hot”. The exceptions are boxes of -7 rough diamonds and the cheap goods, which are hard, if not impossible, to move. Considering that consumer demand for polished diamonds is not rising, we are faced with a mystery: what is fueling demand for rough diamonds?
