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The World's Diamond Glut

AGBF

Super_Ideal_Rock
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I saw this article in today's on-line edition of "The New York Times". Do you think that there will be any difference between how diamond prices will be handled now and how they have always been handled? I mean, De Beers always kept them under tight control.

"LONDON — Is it ever possible to have too many diamonds? For many in the business of producing and trading these gems in recent years, the answer is yes.

The top diamond miners in the world, including the two largest, Alrosa and De Beers, have an inventory problem. So do many of the cutters and polishers who buy the rough stones and sell them to retailers. At every stage of the supply chain there are too many of these precious gemstones, whose marketing has long depended on their rarity.

A glut in many other industries would ordinarily lead to deep price cuts. But consumers are buying stones that have passed through many layers of middlemen: traders, polishers and cutters, who have absorbed much of the raw stones’ price volatility, as well as brands and jewelry houses that create rings, bracelets and necklaces. This has kept retail prices relatively constant, fueled by robust demand from shoppers all over the world."

https://www.nytimes.com/2019/08/16/business/diamonds-mining.html
 

arkieb1

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Companies like De Beers, Rio Tinto, Argyle etc........ have had a diamond monopoly on pricing going on for years. The newer better man made diamonds (that are actual lab grown diamonds, not simulants) is going to shake things up in the next decade, hopefully diamond prices will drop a bit.
 

OoohShiny

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I think there was a thread the other day discussing De Beers' handling of the situation - I think they've allowed sightholders to defer the purchases they are required to make to maintain their status as sightholders, but they aren't really dropping prices. IIRC some buyers have even had to sell parcels (they were forced to take) at a loss just to move them on.

Interesting times!
 

Tekate

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Hey Deb, I read this too. I think prices may drop a bit but as others said, the huge big companies have a hold on prices.
 

AGBF

Super_Ideal_Rock
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I think there was a thread the other day discussing De Beers' handling of the situation - I think they've allowed sightholders to defer the purchases they are required to make to maintain their status as sightholders, but they aren't really dropping prices. IIRC some buyers have even had to sell parcels (they were forced to take) at a loss just to move them on.

Interesting times!

OoohShiny-

Do you know where that thread is? I would like to see it. Thank you!

Deb :wavey:
 

Bron357

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Precious gemstones are a curious accoutrement to our lives. Unlike houses that provide shelter, food that sustains us, clothes that keep us warm / dry, cars etc that give us the ability to move about - gemstones are nothing but pretty. Desired yes, coverted yes, necessary no.
And I am mystified as to why lab grown rubies and sapphires are relegated to the lowest levels of desirability and price while lab grown diamonds are seen as near similar to their earth mined counterparts. Is it because lab corundum is grown yearly literally by the tons and lab diamonds are newer and more tricky / expensive to produce?
Diamonds are not rare except in larger size and more perfect construction and there’s a vast quantity already “out there” aside from any more mined or grown.
And at this time and going forward, is there a growing market for new material be it natural or lab grown?
My generation, most of us married, most of us sporting at least a diamond engagement ring if not a diamond eternity band and a pair of diamond earrings. These things are considered “jewellery staples” by my generation.
And the generation before me, my mother tells me, a string of pearls was a must have as was the quality watch you received for either your 21st, your marriage or even at retirement.
My daughter, the up coming generation and her friends (sample being 17 / 18 year olds with expectations of attaining high level university degrees and significant working careers) have virtually no interest in gemstones. They don’t even own a watch having mobile phones and as for pearls, one told me she found them creepy and was concerned that we “grow them” by sticking a bit of plastic inside. Natural ones, were 1000x worse, these are living creatures, why are we abusing them for adornment?
Obviously there will always be lovers of precious and fine gemstones. The price of quality Kashmir sapphires or unheated Burmese Rubies is never going to go down. These gemstones are truly rare and in very limited quantity.
Diamonds? Like all things price is driven by a combination of desirability and availability, if the up and coming generation has little interest in them and there an over supply, the price can only go down.
 

distracts

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@Bron357 iirc when lab sapphires/rubies were new, they were more expensive than natural, then prices slowly fell a bit and you can see from their common use in fine jewelry at the beginning of the last century that the price was for a while less than natural but still high enough to be used in precious metals with other natural gems - then as they were easier and easier to manufacture, the price hit rock bottom and we got to where we are today. We can see something similar happening with moissanite prices now that the patent is up. I wouldn’t be surprised if the same happened to lab diamond prices - I think DeBeers is trying to hasten that with their Lightbox brand and pricing.

Most of my generation started off with no interest in gemstones - as teens we were the same as your daughter and friends. But now that I’m in my thirties, and my friends have more money, that is different. Among the ones with money. Among the ones without money, it is the stereotypical millennial “id rather spend on experiences than things,” but as I’ve seen from friends who have then gained money, that often is only applicable to when they have to make a choice. Basically, I think the economic situation of most millennials and the destruction of the american middle class has a significant amount to do with lack of desire for expensive gems. If you’re making $40k/year and have $60k of student loans, you just literally can’t afford to even think about them. Given that America is the largest consumer of diamonds and the next couple of generations of Americans won’t be able to afford as much, I wouldn’t be surprised if that results in lowered prices.
 

OoohShiny

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I wouldn’t be surprised if the same happened to lab diamond prices - I think DeBeers is trying to hasten that with their Lightbox brand and pricing.
I wish they'd hurry up - I need me a 2ct colourless VS+ asscher for $1600... :lol:
 

distracts

Ideal_Rock
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I wish they'd hurry up - I need me a 2ct colourless VS+ asscher for $1600... :lol:

Right! I want a 10mm Octavia... I’ll happily pay the price for cutting it if I can have one that huge! :lol:
 
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