News De Beers slashes prices, concerns continue in US Presentation at Sydney Fair to detail counterterrorism and money laundering legal reform would impact the jewellery industry. The presentation will cover the purpose of the reforms, the consultation process and timing, how the proposed regulation may impact jewellery retailers and suppliers, and what it would look like to be regulated under the AML/ CTF regime. “These reforms would extend the existing AML/ CTF regime to help industry, including dealers in precious stones and metals, protect themselves from exploitation from money launderers and other criminal actors,” a spokesperson for the Attorney-General’s Department told <strong>Jeweller</strong>. The De Beers Group has decreased its prices for select larger rough diamonds amid weak consumer demand. Rapaport News has reported that the price cuts range from 5 per cent to 15 per cent in diamonds 0.75 carats and larger, with an emphasis on two-carat diamonds. “De Beers has focused its adjustments on the lowerquality items for which demand has been especially slow, the sources said on condition of anonymity. Polished sales in SI to I2 clarities have slumped this year due to the overall weakness of US retail — the main market for this range — as well as competition from lab-created diamonds,” the report states. Attendees at the upcoming International <strong>Jeweller</strong>y Fair (19-21 <strong>August</strong>) will have an opportunity to learn the latest from experts on proposed reforms to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. On the third day of the Sydney Fair, the Attorney- General’s Department (AGD) will give a presentation detailing how these proposed laws “Precious metals and stones are effective channels to legitimise criminal proceeds serving multiple purposes, including storing value, transferring value, and lifestyle consumption. Currently, only bullion dealers are covered by the AML/CTF regime.” The IJF will be hosted at the International Convention and Exhibition Centre in Sydney’s Darling Harbour. Rough diamond exports in decline for Russians “The company also maintained its policy of allowing 30 per cent buybacks for certain low-performing items, the industry sources said. Buybacks let sightholders sell a proportion of the rough they’ve purchased back to De Beers, allowing them to offload the stones that will generate the least profit. The limit is usually 10 per cent.” Sales at De Beers’ latest cycle reached $US450 million ($AU673.1 million), a 32 per cent decline. US market struggling According to the latest research from Tenoris, jewellery and diamond sales decreased 4.6 per cent year-by-year in June in the US market. The combined value of jewellery and diamond sales declined by 11.2 per cent. In the first half, unit sales have decreased by 5.9 per cent. “Natural diamond sales are on an ongoing downward trend. Year over year, unit sales fell 23.8 per cent. By total value, sales fell 20.9 per cent versus June 2022,” writes Edahn Golan. “In the first six months of <strong>2023</strong>, natural diamond sales were slashed 21 per cent by value and volume. It’s not surprising that diamond sales have been declining in recent months after an exceptional post-COVID run.” Retailer margins are also reportedly shrinking, with an average of 35.2 per cent in June (a 4.2 per cent decline on a year-by-year comparison). According to the latest figures from the Kimberley Process, Russia’s rough diamond exports declined significantly in the past year amid worldwide sanctions following the invasion of Ukraine. Russia’s rough exports declined by 24 per cent on a year-by-year comparison in 2022, totalling 36.7 million carats. Despite the decline, rough production increased by seven per cent to 41.9 million carats. Global rough output increased by 24 per cent on a year-by-year comparison to $US16.02 billion ($AU23.95 billion), while production was close to neutral (0.6 per cent decline). “While the US and other G7 nations, including the UK, have levelled sanctions against Russia for its invasion of Ukraine in February 2022, others, such as Belgium, have been slower to refuse imports from the country,” writes Leah Meirovich of Rapaport News. “The decline in [global] exports reflected the Russian situation as well as a 36 per cent slump in the number of carats exported from Botswana, a 29 per cent fall from the EU, and a 14 per cent decrease from the United Arab Emirates.” An increase in global production value was attributed to Botswana, which improved output by 27 per cent. Total imports slipped 16 per cent by volume and global exports fell 21 per cent. Recent media reports have suggested that harsher sanctions will be installed against Russia in early 2024. 26 | <strong>August</strong> <strong>2023</strong>
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