Diamond Trading Company clients will fly to Botswana for roughs

SURAT: For the diamond traders from Surat and Mumbai, all roads will lead to Gabarone in Botswana as the Diamond Trading Company (DTC), a subsidiary of De Beers, will be holding its first sale of rough diamond boxes between November 11 and 14.
The DTC has relocated its London-based sales activities to Botswana from November 2013. Diamonds from all De Beers' mines in Botswana, Namibia, South Africa and Canada will be brought to Botswana and sold to sightholders.
Industry sources said diamonds account for about 30 per cent of Botswana's GDP. Debswana - a 50-50 joint venture between De Beers and Botswana government - is the worlds' largest diamond producer by value. Debswana's Jwaneng open-pit mine is the world's richest diamond mine.
As a part of an agreement between De Beers and Botswana government, the rough diamonds will be sold from Gabarone and that the De Beers will also make rough stones available for sale in Botswana.
It is estimated that around $6 billion worth of rough diamonds will be sold from Gabarone to the DTC sightholders in the 10 sale sights throughout the year.
Indian DTC sightholders, who constitute around 50 per cent of the total sightholders across the world, are expecting discounts in the certain range of stocks doing well in the United States and other markets.
The market conditions in general remain fairly unchanged. Liquidity shortages, coupled with stricter lending policies of major banks and a general lack of profitability in manufacturing, continue to be major factors affecting businesses.
Polished demand however is steady with the exception of primarily the Stars and Melees diamonds, but prices have softened significantly since the beginning of the year.
Despite recent economic warnings in the United States, demand is expected for the sales season, and the stabilisation of the Rupee has injected a little more confidence into the Indian domestic market, but margin remains the issue.
A DTC sightholder said, "We are in the process of flying to Botswana for attending the first ever rough diamond sales in Gabarone. We need to set up our office in Botswana for close coordination with DTC management."