RAPAPORT… Trans Atlantic Gem Sales (TAGS) recorded a “significant” slowdown at its most recent rough-diamond tender.
The company offered $35 million worth of rough from South African producers at the April sale, it said last week. However, the company sold only around $20 million, with many lots withdrawn after failing to reach their required prices.
“After many months of enthusiastic rough purchasing and escalating prices, the anticipated slowdown was triggered by the volatile geopolitical situation, slowing the rough market significantly from early March,” TAGS noted.
Rough under 0.50 carats and lower-quality goods saw the sharpest price drops, the company explained. The decrease reflects weakened polished demand due to concerns over inflation in the US, Russian sanctions, and the ongoing Covid-19 restrictions in China, which contributed to a collapse in confidence among rough buyers.
“Other important factors of the current rough market are reduced liquidity, coupled with the relatively high levels of pipeline stock held by manufacturers,” TAGS added.
The price drop follows the company’s record result of $75 million from the previous sale, which ended March 2. TAGS believes the decrease is an indication that rough prices will stabilize and return to amounts last seen in November and December of 2021, it said.
Image: Rough diamonds. (Trans Atlantic Gem Sales)
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