The diamond market was strong in 1996, as indicated by year-end figures released by South Africa-based producer De Beers Consolidated Mines (DBRS-Q) and its distribution arm, the Central Selling Organization (CSO).
The world’s biggest diamond producer saw earnings jump by a third over levels reported in the the previous year, to US$1.3 billion.
Diamond sales through the CSO rose by 7% in 1996, to US$4.8 billion. However, sales dropped somewhat in the second half of the year as a result of the termination of the CSO’s contract with Australia’s Argyle diamond mine and continued direct-to-market sales of Russian diamonds. Nevertheless, the US$2.1 billion in second-half sales was a record.
The directors of the CSO report that the firm market for rough gem diamonds larger than 1 carat, which has underpinned price rises over the past two years, has continued into 1997.
Competitive selling into an oversupplied market for smaller stones has created pricing pressures, but recent price adjustments in this area to market levels have enabled the CSO to achieve satisfactory sales.
Worldwide retail diamond jewelry sales in 1996 were up by 2% in units and 4% in carats, but down 2% in U.S. dollar terms, primarily as a result of the depreciation of the Japanese yen.
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