Summary

• Improved market sentiment in lead-up to Holiday Season
• Investment diamond prices remaining stable with increases in some categories
• All eyes to Hong Kong trade show

Trading Notes

Rough prices have eased back somewhat over last few weeks after sharp increases during Jun-July. Polished prices remain stable with some signs of increased demand for better-quality goods. Excellent makes continue to fetch strong premiums over normal to very good makes. Sentiment in US market showing signs of improving amidst more favourable macro-economic climate and solid diamond trading activity. Increased activity in Antwerp as dealers scouring markets to boost inventoy in lead up to Hong Kong Show and pre-holiday season. Price resistance still prevalent in Mumbai and record high gold prices having negative impact on jewelry doemstic jewelry market. Israel market stronger and all eyes are to upcoming Hong Kong Show to ascertain market direction and sentiment.

Market News

Major rough diamond producers signalling improved outlook with Debswana restarting its Orapa No. 2 mine earlier than expected asnd Alrosa selling goods into the market for the first time this year. Russian State Treasury Gokhran auctions 87 lots of large stones weighing 3,386 carats yielding average price of $3,772 per carat and cofirming continued price robustness in large stone market. De Beers launches the EverlonTM Diamond Knot Collection in effort to boost drive Holiday Season diamond jewelry sales.

Comparative Indices and Annual Returns

Comparitive Indices and Graphs - Sept 2009