September Sight Expected at ~$550M
September 22, 11After two very large Sights, DTC Sightholders as well as many other traders are welcoming a smaller September Sight, hoping for a decline in rough diamond supply to the market. The September Sights are traditionally smaller ones.
Some Sightholders have offered their boxes for sale ahead of the Sight, something that is not unusual. However, one trader told IDEX Online that this time around, boxes are offered at well below the DTC prices. Rough diamond prices in the open market fell sharply in the past two months, although diamond miners are not reducing their prices.
Rough diamond traders repeatedly told IDEX Online in the past six weeks that there is an abundance of goods in the market, much of it looking to be sold. Traders feel that one of the problems in the market is oversupply.
In the near term, box trading is expected to be below regular levels after rough diamond prices reached insensible highs. Eroding polished prices are further convincing traders to avoid paying high prices for rough.
One diamantaires that welcomed the smaller Sight is from Moti Ganz. Ganz is chairman of the Israel Diamond Institute, President of the International Diamond Manufacturers Association and the Israel Diamond Manufacturers Association as well as a Sightholder. He said that the decision by the DTC to decrease its September Sight "will help to calm the market, which has recently seen vacillating prices."
Ganz pegged the expected Sight, which will be held September 26-29, at $380 million.
After the unusually large August Sight, estimated at $855 million, the DTC is seeking to "calm the market by decreasing sights and stabilizing prices – which will affect the entire diamond supply pipeline, including the polished diamond market in diamond trading centers," Ganz said.
Meanwhile, traders attending the