adminMost local diamond firms, especially in Marange, sell their gems in India, where they fetch better prices than elsewhere and have received strong backing to conduct sales under the Kimberley Process.
Reports from India said the first cycle of diamond auctions this year was met with solid improvements in demands across all product categories and geographical areas, putting local gems in good stead to fetch good prices.
Mr Neil Ventura, the chief executive of rough diamond trader Diamdel, a De Beers group unit, said regular auctions continued to strengthen in the first two months of the year and are forecast to keep rising in the next few weeks.
“All our indicators point towards a continued, broad-based strengthening in demand in the coming weeks and into the early second quarter,” said Mr Ventura.
Demand at Diamdel’s regular auctions continued to rise, after a lull in recent months, in the first two months of the year. The firm made 323 lots available, compared with the 105 lots in November/December 2011.
International media reports quoted the company on Friday as saying that about 165 different businesses bid at the auctions held during January and February this year, with 300 lots sold to 76 different buyers.
While demand for diamonds from all geographic markets was improving, demand from India-based firms, where Zimbabwe sells most of its gems, increased rapidly following a steady decline in the two previous months.
Mr Ventura noted that demand also improved from Israel and Belgium-based businesses, while demand from Asia Pacific-based buyers held steady.
Zimbabwe could rake in US$2,5 billion in diamond exports in the next few years while US$600 million is expected to flow into national coffers and has already been provided for under the 2012 National Budget.
International investors recently said Zimbabwe would become a leading diamond supplier, at constant levels, for about 20 years over the next few years and India would remain
the major export destination for local diamonds.
At least nine out of 10 diamonds are polished in India, making the Asian country a major global player.
Zimbabwe and India’s bilateral relations improved significantly at both national and corporate levels. Several Indian company-delegations and business groupings have recently visited the country to explore opportunities. India led a number of developing countries in resisting international advocacy groups and Western countries’ bid to classify local gems as “blood diamonds” to prevent their sale on global markets under KP Process.
Major global producer De Beers and Rapaport, which does the marketing, research and influences standards and prices of gems on global markets, allegedly sought to have local gems specified on global markets to maintain its dominance. Its share of the market has fallen from 95 percent to 40 percent now.
Online Reporter