First off, you must understand that diamond sales and sales process greatly varies from one Country to another. In some Countries, sales are entirely controlled by the Government, in others, not so much.
So what is so different about Botswana Diamonds? We have people contacting our Trade Desk offering rough diamond parcels from Botswana…really? Are these offer genuine? This answer is no, such offers do not exit, period!
What do you mean? Well, it is actually very simple, the Botswana Government has made a Join Venture with DeBeers in 1969 creating Debswana Diamond Company Ltd. which controls the market.
In order to jumpstart the economy of the Country, a Botswana law was enacted in order to mandate that all diamonds exported out of Botswana be cut and polished, in order to create employment, so no rough diamonds can exit the Country legally.
Given, some people are illegally smuggling stones out of every diamond producing Countries, however, all these ridiculous rough offers claiming to have Botswana origin are fake!
DeBeers even moved their head office from London to Gaborone a few years ago, and Gaborone now has one of the most extraordinary diamond facilities in the world.
In the Diamond Business, scammers are everywhere, from fake African Sellers to Western Brokers acting as hot shot Diamond Buyers all over the internet, fake rough diamond manifests are flying all over the internet like an Airbus 380 goes around the world, and than are being sanitized by brokers afraid to be circumvented on their commissions, which is even funnier.
These low life will act and pretend to be someone they aren’t, fake seller’s (mostly in Africa) will send you fake export licenses, manifests for astronomical amounts of diamonds, ranging from 10,000 CTS to 500,000 CTS, claiming to be able to supply such quantities monthly (LOL). 99% of these are fake, in order to be able to supply such quantities, you have to be a company like Alrosa or De Beers, and believe me when I tell you that these large mining companies do not send out such manifests through brokers on the internet.
Here are some examples of fake licenses from Sesay Moses of Global Mining Company S/L Limited, Fasally Tarawally from Amadex SL Limited, John E. Cole (CEO of Fashion Mining and Company SL Limited), these scammers and crooks can be very creative, will promise you the world and the story will change as they go on.
Scams can go from a request for Buyers to issue an SBLC, seller would provide a fake POP, once the Letter of Credit is open (few banks these days would still let you fall for these scams by the way), they would “take you hostage for ransom” and request a lump sum in order for their bank to release the instrument.
Others will simply set you up with corrupted local cops, get your parcel confiscated and get a cut back from the bribe. There are a million ways for these crooks to scam you over the internet, or on the ground.
The most important thing is never to pay anything up front, never to open any kind of instruments, and always transact at the government offices where the stones will be evaluated by a professional gemologist before paying any money.
The GGDO, The Government Gold and Diamond Office in Freetown Sierra Leone is the government agency in charge of issuing all export licenses for Gold and Diamonds if you want to export these commodities out of the country.
Such licenses can cost up to $45,000 per year, and without purchasing a license, or being able to use someone else’s, you will not be able to get your Kimberley Process Certificate to take the diamonds out of the country.
As of today, there are only 21 Companies with current Diamond Exporter’s Licenses, 40 with Diamond Exporter’s Agent Licenses, and 47 with Diamond Exporter’s Agent Certificate.
Most people will show you a fake license, and purchasing from these scammers can land you straight to prison, not to mention the fact that you will most likely lose your money. You will also need a Diamond Dealer’s License if you decide to purchase rough diamonds on your own.
If you decide to purchase rough diamonds in Sierra Leone, Madnox can save you lots of time, money and headaches with our operations on the ground in Freetown. Feel free to contact us at TradeDesk@Madnox.com or call us for consulting services at +1-305-600-1018
Rough Rapport index has been falling since mid 2014. Many of the large diamond players such as Debeers and Petra had to lower their prices by 10%, Alrosa, the largest diamonds producer in the world lowered their prices by 16% in September.
This fall in prices comes primarily from a slowing Asian market, pressure from Indian buyers, and first and foremost from over production from mine to market by these large mining companies.
Regardless of the falling market, we anticipate prices to stabilize within the next 2 quarters, ultimately, the rough diamonds market will recover, and investments in rough diamonds or any precious commodities are still much safer than stocks, which are only backed up by useless paper.
Gold has been picking up steam recently, due to the volatile stock markets in Asia, and will most certainly keep climbing as the Chinese real estate markets slowly implodes in the near future.
An extremely rare 12 carat, flawless blue diamond, named the Blue Moon, will be sold at a Sotheby’s auction on November 11th in Geneva, and is expected to become the world’s most expensive diamond ever sold. Sotheby’s expects the Blue Moon to fetch up to $55 Million.
The Cullinan Mine has produced some of the world’s largest diamonds in the past and is one of Petra’s largest pit mines. Petra Diamonds is the largest rough diamonds producer is South Africa. Petra has seen a 33% drop in sales from the same period last year.
The Blue Moon’s original size was 29.62 CTS and was purchased, cut and polished by Cora International, a New York Cutting House, who took 6 months to polished the stones, and will be selling it in Geneva. Current world record is being held by The Graff Pink which went for $46.2 million in 2010.
Manicaland Province Marange Fields have been known to be some of the largest source of diamonds in the world in the past few years. In 2015, Zimbabwe’s diamond production is expected to drop from 5.9 Million CTS to 3.5 Million.
Three new mines started operations last year in the Marange Fields, however, the increase in supply has not been steady, as these mining operations are expected to have a lesser impact, due to the fact that these are not alluvial mines.
Zimbabwe had a tremendous supply of alluvial diamonds, however, these alluvial diamonds have been mined extensively, and alluvial supply is running short. Therefore minors now have to dig for rough stones underground instead, making it more difficult and more expensive to mine for rough diamonds.
This is the number one reason for the decrease in production in the Marange Fields. In order to optimize the management and production of these mines, the Government is in the process of merging five mining companies into one large corporation.
By Volume (cts) Total = 124,778,468.08
Russian Federation 31%
Congo, Democratic Republic of 12%
By Value (US $)
South Africa 8%
Russian Federation 26%
Source: Kimberley Process Certification Scheme
Here is a summary of the Rough Diamonds Production in CTS per Country for 2014:
- Russia with 34,303,500 CTS Produced
- Botswana with 24,668,090.77 CTS Produced
- Democratic Republic of Congo with 15,652,014.63 CTS produced
- Canada with 12,011,619 CTS Produced
- Australia with 9,288,231.89 CTS Produced
- Angola with 8,791,340.01 CTS Produced
- South Africa with 7,430,955.94 CTS Produced
- Zimbabwe with 4,771,636.82 CTS Produced
- Namibia with 1,917,689.70 CTS Produced
- Sierra Leone with 620,181.11 CTS Produced
- Lesotho with 346,017.12 CTS Produced
- Tanzania with 253,180.25 CTS Produced
- Ghana with 242,259.59 CTS Produced
- Guinea with 164,058.72 CTS Produced
- Guyana with 99,950.34 CTS Produced
- Liberia with 65,822.49 CTS Produced
- Brazil with 56,923.25 CTS Produced
- Republic of Congo with 53,162.70 Produced
- India with 37,024.72 CTS Produced
- Cameroon with 3,718.16 CTS Produced
- Cote d’ Ivoire with 1,074.15 CTS Produced
- Togo with 16.72 CTS Produced
The Total World Diamond Production for 2014 was 124,778,468.08 CTS
Source: Kimberley Process Certification Scheme