WFDB backing DTC’s plan to sell to secondary market

by eyetee | February 17, 2009 12:00 am

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The World Federation of Diamond Bourses (WFDB) says the Diamond Trading Company’s (DTC’s) decision to offer surplus rough to the secondary market will help the trade face the challenges of the global economy.

“If the new DTC approach pans out as we hope it does, it could bring some much-needed relief to the secondary market,” said WFDB president Avi Paz. “We welcome the DTC’s decision, not only because it will be good for the industry, but also because it recognizes the stabilizing role of the thousands of dealers and manufacturers who are not sightholders.”

DTC is the rough diamond selling arm of De Beers. Last month, DTC announced it was anticipating a 50 per cent reduction in its January, February, and March/April offerings due to slow Christmas sales, particularly in the United States. Decisions will be made from sight to sight on the actual reduction.

“Times are tough, and even with the additional rough available, we must proceed with caution,” Paz said. “But the increased availability of rough provides us with more options and that is a very good thing.

“It is important to remember the broad base of the diamond industry is made up of smaller and medium-size operators, the majority of whom are members of WFDB-affiliated bourses around the world. By enabling these individuals access to rough goods at fair and current market prices, the diamond trade will be better equipped to face the challenges confronting it.”

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