Varda Shine: the Global Diamond Industry is On The Up

The Diamond Trading company head says the economic indicators in the United States are improving, and so are the financial results of the larger retail jewelry chains.

De Beers rough prices have increased by mid- to high-single digit percentages since the beginning of 2013, Varda Shine, De Beers executive president of global sightholder sales, said in an interview with Rapaport News.

She commented that some types of rough have seen double digit percentage growth so far this year.

“We’re seeing that retail sales are better, inventory levels at the cutting centers have gone down, U.S. economic indicators are improving, and we’ve seen the public listed retailers – Tiffany, Sterling, Zale, Blue Nile – have all done well in the first quarter. So this year is looking like a good year,” Shine said.

Speaking about price increases at the March sight, Shine said they had been generally well received by the market. However, the rises at the sight last month raised some eyebrows.

Diamond trading in the second quarter has declined somewhat, but that is usually the case in April and May since they are less busy months, Shine commented.

De Beers predicts that demand for diamonds among consumers this year will surpass the three-percent rise recorded in 2012. Speaking of the economic situation in China, she said that although the rate of demand in China is seen declining slow, it is still expected to see rises in the double digits in 2013.

Shine added that the strongest growth this year has been seen for diamonds that produce polished of 0.20 to 0.90 carat. Meanwhile, other key markets, such as India and the US are seeing steady growth.

“Overall, diamond demand is still growing and it’s a matter of managing expectations,” she concluded.