Here comes more price manipulation.........

[WillyDiamond]

The Wall Street Journal is reporting today that sanctions on Russia will effect the diamonds coming from Russia to Antwerp. With a reduction in supply, prices sure to increase. I guess if you are straddling the fence to buy now, now is the time. As if we did not have enough price manipulation.

 

[Laila619]

The Wall Street Journal is reporting today that sanctions on Russia will effect the diamonds coming from Russia to Antwerp. With a reduction in supply, prices sure to increase. I guess if you are straddling the fence to buy now, now is the time. As if we did not have enough price manipulation.

Yep, total BS!

 

[hathalove]

I've been on the fence about buying a couple of .35s or .40s do you think this will affect these smaller sizes? What about even smaller like .25s?

 

[lioness]

Please post the link. I can't find it and I'd love to read it.

 

[Texas Leaguer]

There is a basis for the report. This article goes deeper into the issue. Also remember that markets react to perceived risk so it should be no surprise if there is market volatility given the magnitude of the geopolitical implications of Russia's behavior.
http://www.diamonds.net/News/NewsItem.aspx?ArticleID=46623

Whether or not it will play out, we will just have to wait and see. However, we have been seeing an upward trend in prices for several months now anyway. Events like this will most likely not serve to reverse that trajectory.

 

[lioness]

There is a basis for the report. This article goes deeper into the issue. Also remember that markets react to perceived risk so it should be no surprise if there is market volatility given the magnitude of the geopolitical implications of Russia's behavior.
http://www.diamonds.net/News/NewsItem.aspx?ArticleID=46623

Whether or not it will play out, we will just have to wait and see. However, we have been seeing an upward trend in prices for several months now anyway. Events like this will most likely not serve to reverse that trajectory.

Thank you Texas!

 

[Todd Gray]

There are also boxes of diamond rough trading without ever being opened, as speculators buy up diamonds for investment purposes, to the extent that some of the cutters are finding it more profitable to sell the boxes for a quick profit, than take the time to cut them... thus there are less polished diamonds available, fewer options for people to consider, and it's not a new thing, it's been going on for quite some time. Martin Rapaport railed the industry for it at the JCK Trade Show last year, unfortunately the people who were present to hear the message, were probably not the people who needed to hear it.

That said, the block of cheese which I used to buy for $7.00 now costs a bit more than $10 and it also costs more to fill up my car, even down here in Mexico where I'm bumming around these days... and limes, you'd be aghast to learn what I'm paying for limes! They're so expensive that there have even been reports of produce trucks getting hijacked (not kidding) and so it goes, with anything which can be sold for a profit.

An interesting trend which I've noticed over the past few weeks, is that a number of my clients have had diamonds sold out from under them while they wait in hopes that prices will adjust, in the mean time somebody else buys the diamond, and the new production entering the market is more expensive, if there is anything available in the range which they're looking for at all... this has primarily been 1.50 - 2.25 carats, G-I color, SI-1 + clarity, precise zero ideal cut goods.

 

[Texas Leaguer]

There are also boxes of diamond rough trading without ever being opened, as speculators buy up diamonds for investment purposes, to the extent that some of the cutters are finding it more profitable to sell the boxes for a quick profit, than take the time to cut them... thus there are less polished diamonds available, fewer options for people to consider, and it's not a new thing, it's been going on for quite some time. Martin Rapaport railed the industry for it at the JCK Trade Show last year, unfortunately the people who were present to hear the message, were probably not the people who needed to hear it.

That said, the block of cheese which I used to buy for $7.00 now costs a bit more than $10 and it also costs more to fill up my car, even down here in Mexico where I'm bumming around these days... and limes, you'd be aghast to learn what I'm paying for limes! They're so expensive that there have even been reports of produce trucks getting hijacked (not kidding) and so it goes, with anything which can be sold for a profit.

An interesting trend which I've noticed over the past few weeks, is that a number of my clients have had diamonds sold out from under them while they wait in hopes that prices will adjust, in the mean time somebody else buys the diamond, and the new production entering the market is more expensive, if there is anything available in the range which they're looking for at all... this has primarily been 1.50 - 2.25 carats, G-I color, SI-1 + clarity, precise zero ideal cut goods.

Speculation can be expected in any market where conditions suggest the possibility of rapidly rising prices. One of the things that the DeBeers Supplier of Choice shakeup was designed to accomplish was to ensure that all those in the chain were adding value by cutting and marketing the goods, thereby creating a more predictable market. I'm not sure to what extent that has been successful, but I am sure you are right that, especially in light of dramatic world events, a fair portion of goods are being held back.

Regarding the limes, it actually made NPR news recently. And being somewhat of a conosuiere of margaritas, it definitely caught my attention! Apparently the shortage stems from drug cartel confiscation of lime growers in Michoacan where a majority of the production comes from.

Fortunately for me, I have my own lime tree that keeps me well stocked with incredibly juicy and flavorful yellow key limes. Now if I just had a kimberlite pipe in my courtyard...

 

[Todd Gray]

Speculation can be expected in any market where conditions suggest the possibility of rapidly rising prices. One of the things that the DeBeers Supplier of Choice shakeup was designed to accomplish was to ensure that all those in the chain were adding value by cutting and marketing the goods, thereby creating a more predictable market. I'm not sure to what extent that has been successful, but I am sure you are right that, especially in light of dramatic world events, a fair portion of goods are being held back.

Regarding the limes, it actually made NPR news recently. And being somewhat of a conosuiere of margaritas, it definitely caught my attention! Apparently the shortage stems from drug cartel confiscation of lime growers in Michoacan where a majority of the production comes from.

Fortunately for me, I have my own lime tree that keeps me well stocked with incredibly juicy and flavorful yellow key limes. Now if I just had a kimberlite pipe in my courtyard...

Fortunately there is still a good supply of limes coming out of the San Carlos / Guaymas region, which is just four hours South of the Nogales, Arizona border and they are brought over by ferry to this side of Baja regularly, so the margarita mill is flowing!

I don't know how much is being held back, I got the impression that a lot less is even being produced since immediate profit can be made simply by flipping the boxes of rough, but it stands to reason that speculators play both sides of the supply chain: rough / polished.

 

[Gem Queen]

I live in Southern California. Yesterday I went to Smart and Final and they had a bag of limes for $17. I almost said something out loud. On top of it, they were hard and didn't seem juicy.

 

[Todd Gray]

I live in Southern California. Yesterday I went to Smart and Final and they had a bag of limes for $17. I almost said something out loud. On top of it, they were hard and didn't seem juicy.

Guess that I shouldn't be complaining about 35 pesos per kilo, but man it's up from 25