Market Comments 6/17/2010

Trading centers cautiously optimistic about demand after Vegas show but concerned about profitability following June rough price increases. Strong demand and lower discounts for small goods under the carat and 1-ct. pique stones. Christie’s New York jewels sale brings $15m (84% by lot) with 27.03-ct, D, VVS1, type IIa selling for $3.6m ($131,500/ct.). Lucara Diamond begins production at Lesotho’s Mothae mine. U.S. April polished imports +71% to $1.4b, polished exports +65% to $973m. India’s May polished exports +73% to $1.8b, rough imports +55% to $978m. Israel’s polished exports +64% to $601m. NGOs pressure Kimberley Process to suspend Zimbabwe and include human rights in mandate ahead of meetings.