Market Comment

News: Anglo American to sell off or IPO De Beers; BHP’s $43B second offer for Anglo rejected. Diamond market slow. India April polished exports -17% YOY to $1.2B, rough imports -19% YOY to $1.2B. Round prices falling in IF-VS1; SIs rising. GemGenève weak, with reduced sales and attendance. Focus shifts to Las Vegas. De Beers cuts Lightbox prices by up to 40%. Geneva Magnificent Jewels auctions: Christie’s raises $54M, selling pear modified brilliant, 202.18 ct., fancy-intense-yellow SI1 for $6.7M ($33K/ct.); Sotheby’s totals $34M, including round-cornered square brilliant, 37.61 ct., E, IF diamond for $4.3M ($114K/ct.). Brilliant Earth 1Q sales flat at $97M.

Fancies: High inventories of Ovals and Pears due to slow sales and imbalance between supply and demand after Indian manufacturers shifted from rounds to fancies last year. Cutters now returning to rounds. Sellers are flexible on prices. Downtrend continues. Sales of Hearts, Princesses and square Cushions low. Longer Ovals, Pears, Radiants and Cushions bringing higher prices. Goods with medium and short ratios harder to sell. Supply shortages supporting prices for Marquises. Well-cut stones hard to find and commanding premiums. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid.