De Beers raises rough prices by an average 10% with very large DTC July sight estimated at about $850m. Some rough dealers still hoarding goods in anticipation of future price hikes despite forecasts for stable 3Q. Trading centers quiet as summer vacations approach in Belgium and Israel. Petra Diamonds revenues +24% to $221m as production -4% to $1.12m cts. while average prices +19%. BHP Billiton’s FY4Q diamond production -22% to 576,000 cts. due to lower grades at Ekati mine. India’s June polished exports +1% to $2.2b., rough imports +38% to $1.6b. Gold record tops $1,600/oz. barrier as U.S. debt debate continues to create currency uncertainty.

Global Markets

United States: Wholesale trading is quiet as many dealers have been on vacation with the Diamond Dealers Club closed for its annual break. Retail jewelry sales continue to show improvements over the same time last year, largely driven by the rise in prices over the past year, with bridal goods dominating the market.

Belgium: With the August break approaching, the market is quiet, as expected. Traders have already shifted to vacation mode after this shorter week due to a public holiday. There is growing resistance to higher polished prices, although some sellers are showing flexibility to secure last-minute deals before the break. Rough trading is stable but some caution is evident following this month’s price hikes at the De Beers Diamond Trading Company (DTC).

Israel: Trading is stable but relatively slow with the approach of the August summer vacation period. Still, the outlook remains positive. Polished dealers report good demand for 0.30-carat to 1.99-carat, G-H, VS2-SI goods with a shortage of SI clarity stones. There is rising concern that rough dealers are holding back rough, which is fueling shortages in the polished market and the uptrend in prices.

India: Trading remained quiet following last week’s bomb blasts which shook Mumbai’s diamond areas. Polished dealers are looking ahead toward the India International Jewellery Show (IIJS), which begins on August 4. General polished demand remains good if slightly down as a result of the explosions. There is good demand for very small diamonds, stars and melees, in SI to pique clarities, as well as for 1.00-carat goods in all categories. Rough dealers are showing caution following this week’s DTC price increases.

China: Retail and wholesale trading remains relatively slow during the summer period, although the uptrend continues compared to last year. Still, demand for polished diamonds is stable in the popular Chinese items of 0.30-carat to 1.10-carat, D-J, VS2-SI1 certified stones. Wholesale buying is focused on filling existing orders and buyers are only expected to significantly increase their buying toward the end of August as they begin to prepare for the October Golden Week wedding season.

Hong Kong: Wholesale trading is stable driven by specific item buying as dealers appear to be avoiding larger inventory purchases through the summer months. Buyers are showing resistance to higher seller asking prices while prices remain firm. Trading is expected to continue to be relatively slow until mid-August when dealers start to plan for the September Hong Kong show.