Edahn Golan: Sightholders Begin New Contract Period Cautiously

Market Analysis
02/05/2015 22:42

Industry analyst Edahn Golan previews the first De Beers Sight of the 2015-2018 Global Sightholder Sales (GSS) contracts, starting Monday 4, taking place on the backdrop of perhaps the most challenging period for the global diamond industry across the entire pipeline; jewelry sales keep declining, as do the profit margins of mid-stream traders and manufacturers whose cash-flow levels remain a difficulty, while producers are reporting a drop in sales and have announced reduced production. As Sightholders reportedly applied for a cautious supply schedule (ITO – Intention To Offer), Golan takes a look at the dynamics of and market sentiment on this first sight, such as "ex-plan" tactics and the expectations De Beers will not only decrease production, but also prices.