Turning The Diamond Market On Its Head
Finweek English|7 November 2019
The diamond industry has been hit hard over the last year, but diamond miner Lucara is using blockchain technology to change the way buyers purchase from them – and the company believes it is paying off.
David McKay
Turning The Diamond Market On Its Head

With the firecrackers of Diwali, which resounded throughout certain quarters of Johannesburg suburbia towards the end of October, comes cordite – and hope.

In fact, any phrase ending in the word ‘festival’ is likely to be welcomed by the world’s diamond sector, which has this year seen average prices plummet 35% below levels of 2014 to 20 17.

That’s because festivals often mean diamond (and gold jewellery) purchases.

Thanksgiving in the US – the world’s largest diamond market and which is still holding its own – follows Diwali; and Christmas and New Year’s celebrations follow Thanksgiving. By February, the diamond sector hopes to be clapping itself on its lucent back, wondering what all the panic was about anyway.

In October data from De Beers showed its last cycle of sales totalling $295m. Compared to the previous cycle of sales, about six weeks earlier, this was an advance but year-on-year, sales were nearly $100m less, which is heavy.

The expectation is that the sector is through the worst, but diamond equities have been well and truly smacked. Lucara Diamond, a company listed in Toronto but which operates the Karowe mine in Botswana, was the latest to fall victim – sliding about a third in September to its lowest level in five years.

Esta historia es de la edición 7 November 2019 de Finweek English.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición 7 November 2019 de Finweek English.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE FINWEEK ENGLISHVer todo
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 minutos  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 minutos  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 minutos  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 minutos  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 minutos  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 minutos  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 minutos  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 minutos  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 minutos  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 minutos  |
5 November 2021