De Beers increases rough diamond prices by 5 percent

LONDON (Reuters) - The world's biggest diamond producer De Beers boosted rough diamond prices by an average of 5 percent this month, the firm said on Friday.

The price hike by the group's marketing arm, the Diamond Trading Company (DTC), came amid strong demand for diamonds in Asian emerging markets and tight supply, which led to price increases of 8.5 percent earlier this year.

A De Beers official said last month that buoyant diamond demand from China, India and the Middle East would more than offset expected slower sales in the United States, which accounts for half of the diamond jewelry market.

De Beers, 45 percent owned by mining group Anglo American (AAL.L: Quote, Profile, Research ), made the price increase during the firm's July "sight" this week, one of 10 week-long events during the year at which the DTC markets rough diamonds to tightly-screened clients.

"Some increases have been made at the July Sight, the overall effect of which is plus 5 percent," De Beers said in an email in response to a query.

De Beers said in February that it expected a rebound in its rough diamond sales this year after a dip in 2007.

Sales fell 3.7 percent to $5.9 billion (2.97 billion pounds) last year, but supply shortages were expected to keep prices strong and help to lift the 2008 sales figures, De Beers had said.

De Beers, which controls around 40 percent of the diamond market, posted flat output of diamonds last year at 51 million carats and a steady result is expected in 2008.

State Dept., Customs Officials to Provide KPCS, Clean Diamond Act Guidance at JCK

New York City: Sue Saarnio, special advisor for conflict diamonds at the U.S. State Department and Vincent Dantone, program manager for trade policy enforcement programs at the U.S. Customs and Border Protection, will be available to provide legal compliance information to rough diamond importers and exporters about the Kimberley Process (KPCS) and the Clean Diamond Trade Act at the JCK Las Vegas Show.

Under U.S. law, all rough diamond shippers are required to use U.S. Kimberley Process certificates when importing or exporting rough diamonds. Importers and exporters also must send copies of Kimberley Process certificates to the U.S. Census Bureau's toll-free fax line at 1-800-457-7328 and maintain records of all rough diamond shipments for five years. Importers also are required to send confirmation of receipt to foreign exporting authorities, among other requirements.

Saarnio and Dantone will be based at the Jewelers Vigilance Committee (JVC) booth, L-13, Sands Expo & Convention Center, Sunday, June 1 and Monday, June 2.

For information about the Kimberley Process and Clean Diamond Trade Act, visit: www.state.gov/e/eeb/diamonds or http://www.kimberleyprocess.com/.

Polished Diamond Price Inflation Shows Dramatic Rise in April

Energy prices continue to spike; food costs are higher; clothing prices are up. Global prices of virtually all goods are on the rise, and inflation is the main topic in news headlines around the world. So it should be no surprise that polished diamond prices are also caught up in this inflation frenzy.

The economy of the U.S., which represents just less than 30 percent of the global economy and about 50 percent of global diamond consumption, appears to be mired in a recessionary mode, there is no shortage of demand for high quality polished diamonds in other world markets. Diamond buyers in Asia, the Middle East, India and China have stepped in, and they are bidding up prices, especially among the larger stones – three carats and above.

A common question today, will these diamond price increase hold at retail, or will merchants negotiate them down? – appears to have been answered. Because of strong demand for polished diamonds in other global markets, diamond suppliers have been able to maintain their price increases. If a U.S. customer bulks at paying higher prices for diamonds, the diamond supplier simply moves on to another market where demand is strong.

As long as the demand for diamonds and diamond jewelry remains strong, especially in emerging markets, prices are expected to rise. Further, since rough diamond prices have been rising faster than polished diamond prices, there is on-going pressure to pass along those price increases. So far this year, rough diamond prices are up about 8.5 percent based on results of DTC Sights; polished prices are up by just over 6 percent since the end of 2007.

While diamond prices showed a dramatic increase in April based on comparisons of the average prices for the month, the real spike in diamond prices occurred in March.In March, there was a sharp spike mid-month, and those higher prices carried over into April.However, while prices were at record levels in April, they were relatively flat throughout the month. The market was apparently digesting the price spike which occurred in March; many suppliers were waiting to see if prices would hold firm. They were rewarded for their patience: prices were steady in April.

Because rough diamond prices are rising at a pace faster than polished diamond prices, there is much pressure on cutters and polishers to raise their prices, a trend that is likely to continue. This will keep polished diamond prices from falling, and should provide support, along with baseline consumer demand, to send prices higher, but at a more moderate rate.

DFI’s Marine Mining Yield Rises, Average Prices Up 21%

Diamond Fields International (DFI) announced Monday that it sold a total of 1,958.19 carats at its most recent rough diamond sales for an average price of $258.36 per carat, a 21 percent increase over the previous year’s average sale price of $213 per carat.

A total of 2,763.28 carats were recovered by DFI during the month of March, the company’s best month since May 2007, DFI stated in a release. Total carats recovered to the end of the first quarter of 2008 came to 5,882.74; of this, 15,626 stones were gem quality, with an average weight of 0.38 carats per stone.

Commenting on the results, DFI CEO Wayne Malouf credited “the significant improvement in ship availability, a prerequisite in our program to make the marine operation more efficient.” Most of the diamonds were mined at DFI’s marine operations which were recently overhauled.

DFI recently announced that PriceWaterhouseCoopers had resigned as the company’s auditors, effective April 23, and that DFI’s head office had been moved from South Africa back to Vancouver, B.C.

DFI is a mining and exploration company with projects in West Africa, Namibia, Zambia and Madagascar, mining diamonds, gold, zinc, copper and nickel.

DTC Hikes Prices in Response to Rising Market Prices

The Diamond Trading Company (DTC) announced an average price increase of about 3.5 percent for the upcoming Sight, the fourth this year, to begin Monday. Together with previous price hikes by the DTC, the cumulative average affect is an 8.5 percent increase in rough diamond prices since January.

The DTC said the hike will mostly affect nicer goods that result in IF - SI clarity polished diamonds.

Sight four is the first Sight this year that will not include those not selected for the new contract period. On Tuesday, the DTC is expected to publish the new Sightholders list for the 2008-2011 period. The publication was delayed by a number of weeks after questions were raised regarding statements made in the applications by a few companies that passed the Sightholders selection process.

The Sight will run through Friday.