Diamond manufacturers reported higher prices during the November sight period, leaving many concerned that the market is being driven by artificial forces.



“It’s like trading in futures at the moment and people are buying rough diamonds with the expectation that prices will rise further,” said one Diamond Trading Company (DTC) sightholder, who estimated that DTC prices raised an average of 5% at the November site last week.



The DTC's sight No. 9 had an estimated value of $325 million, which was roughly the same as that of the No. 9 sight held in 2008, following the collapse of Wall Street. But this sight was in line with De Beers pledge that the final two sites of 2009 would be smaller. Reports from the sight indicated high premiums on boxes and strong demand for the amount of diamonds on the market. DTC reportedly adjusted its diamond prices and assortments accordingly.



DTC spokesperson Louis Prior explained that the final two sights of 2009 would be smaller because De Beers still has goods that need to move through production, as it curbed diamond output from late 2008 through the second quarter of 2009. De Beers has since started to ramp up its diamond production again and is expected to finish the year with approximately half its 2008 total. DTC sales have proportionally decreased by an estimated 51% to $2.9 billion for the year to date, according to sources.