Exit the UK from the European Union will not have a negative impact on the sustainable demand for diamonds. The EU is not the dominant center of the diamond consumption for many years. While the decrease in demand due to depreciation rates and quotes in stock markets will lead to a reduction in commercial demand from the EU and the UK, the global investment demand for high-quality diamonds as a store of value will increase due to the global economic and political uncertainty.
Demand for diamonds from China and India are unlikely to fall due to the exit of Great Britain from the EU, while remaining stable at current low levels.
US is an important market will stay healthy and keep growing. We do not expect any significant negative impact on the US diamond market in the medium and long term. While demand could win due to the fact that a stronger dollar will have greater purchasing power, short-term decline in stock prices and a reduction in the volume of wealth can lead to a decrease in demand in the quiet summer months. Overall, we expect a positive holiday season in the United States in December of this year.
Exit the UK from the EU to increase pressure on the part of banks in the diamond industry. Liquidity will continue to decline. Although the UK out of the EU, is not expected to reduce the overall demand for diamonds in large part, it will indirectly affect the liquidity of the trade, causing price fluctuations. It is important that producers of rough support price levels that ensure the profitability and liquidity in the manufacturing sector in these uncertain times. In addition, raw material producers should increase their marketing spending to ensure overall demand for diamond engagement rings from consumers of the two thousandth generation in the United States.
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At Sotheby's reported that revenue of the auction house increased by 2.5% in 2015, to $ 961.5 million, but profit fell sharply, by 63%, to $ 43.7 million. The company has suffered a number of losses, including non-cash tax charge on profit the sum of $ 65.7 million, as well as contributions after tax of $ 23.6 million as at the end of last year's auction house held a staff incentive program for voluntary separation.
The company offered voluntary programs for the dismissal of staff in the fourth quarter of 2015, which decided to use about 5% of the 1,600 employees of auction houses around the world.
"After a year of transition, we have a strong team with a clear mandate to build a more valuable business for shareholders, which would be more responsive to new and existing customers," - said Ted Smith (Tad Smith), President and Chief Sotheby's executive director
, "We are most likely be faced with one or more hard blocks to the end of the current cycle, but we are attentive to our guarantees and commitments of capital to witness the our liquidity and continue to invest in people and in the opportunities cat orye will drive our future success. Our cash will allow us to buy back part of the shares. "
In 2015, Sotheby's sold jewels worth $ 571.4 million, which is below last year's record $ 602.5 million.
In November, an auction Sotheby's has sold 12.03-carat diamond "Blue Moon" (Blue Moon), who set a world record price of $ 48.5 million.
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