Prices rise as DTCB concludes sale

WANETSHA MOSINYI
Staff Writer | Friday July 11, 2008 00:00

 

DTCB's third sight started on Monday and ends today at its state-of-the-art premises in Gaborone. 'All goods are affected by the price increase and the overall effect is five percent.

The larger and higher quality stones were the most affected by the price increase,' DTCB corporate communications and public affairs manager Kago Mmopi said on Tuesday.

The price changes, which were announced by DTC International before the start of its fifth sight in London, affect all the DTC operations.

DTC International usually announces cumulative price changes three to four times a year at strategic times. Mmopi said the next cumulative price update will be at the August sight.

Last month, DTC International reported that prices at the first four sights this year had risen by an average of 8.5 percent.

The DTCB third sale follows earlier sales held during the weeks of 28th April and 2nd June this year. The rough diamonds are sourced from DTC's aggregated mix. This is a blend of diamonds sourced from various producer countries including Russia, Canada, South Africa, Botswana, Namibia and Tanzania.After the aggregation mix in London the diamonds are sold by DTCB to its tightly screened clients - the 16 local sightholders licenced to cut and polish diamonds in Botswana. Mmopi said employment opportunities have been created for over 2,000 people in Botswana as a result of the setting up of the 16-diamond cutting and polishing companies.Further employment creation will be realised when the aggregation process relocates to Botswana next year. Local jewellery manufacturers will reap benefits with the growth in the industry.

As with the first two sights, clients will visit the DTCB offices to view the goods in order to verify that their requirements have been met.

The annual value of the 2008 sales is expected to reach $375 million and by the end of the decade, it is envisaged that aggregated rough diamond sales in excess of US$550 million will be realised.DTCB parent company, De Beers said in February that it expected a rebound in its rough diamond sales this year ,after a dip in 2007.

Sales fell by 3.7 percent to $5.9 billion in 2007, but supply shortages were expected to keep prices strong and help to lift the 2008 figures.

In February, De Beers managing director Gareth Penny said the outlook for rough diamond prices hinged partly on the economy in the United States - the world's biggest diamond jewellery market with half of total sales.

But even if a US downturn dampened sales for cheaper products, healthy demand is due to continue in China, India and the Middle East, he added at the time.De Beers, which controls around 40 percent of the diamond market, posted flat output last year at 51 million carats and a steady result is expected in 2008.