Market Comment

News: De Beers and Botswana sign 10-year sales agreement with possible five-year extension. Deal reflects growing power of producer countries: Okavango to sell 30% of Debswana goods for first five years, 40% for next five years, 50% after 10 years. De Beers holds prices steady at Feb. sight, with shortages of 5 ct. and larger goods. Rough sentiment improving. Polished prices stable in select categories, supported by inventory declines. US wholesalers struggling to find the right items. Low expectations for diamond trading at Hong Kong shows (Mar. 2-8) amid weak Chinese demand. EU postpones mandatory traceability mechanism for Russia sanctions to Jan. 1, 2026.

Fancies: Large fancy shapes doing better than rounds. Prices stable overall, and firm for 3 ct. and larger diamonds. Better stones are hard to find. Solid US interest in elongated Ovals with good shape and quality in D-I, VS-SI categories. Elongated Emeralds, Radiants and Pears in 2.50 to 2.99 ct. sizes trading at significant premiums. Oval and Pear, 0.30 to 0.49 ct., F-I, VS diamonds in demand. Ovals 5% to 10% more expensive than Pears in US market. Supply shortages supporting prices for Marquises. Square Cushions slow. Very well-cut fancy shapes difficult to find and commanding premiums. Off-make, poorly cut fancies illiquid.