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Sightholder


tobik
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Hi all

 

 

For my MBA thesis I am currently analyzing the diamond market, especially the sightholder segment. Could anybody please provide me with some market data on sightholder? Especially:

 

· Ranking based on turnover (I know so far that Rosy Blue is nr.1 and Diarough is nr. 5. But who is e.g. nr. 2-4?)

 

· Data on market segments they are in (based on the 4C’s)

 

· Production capacities (input an output by value and quantity)

 

· General information concerning market trends and sourcing regions (I know the Rio Tinto website so far)

 

 

Any help is highly appreciated!

 

 

Kind regards thank you very much in advance,

 

Tobik

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To get anything useful, you are likely to be delving deep into the realm of proprietary information. Most of the sightholders (I’m assuming you mean the DeBeers customer list although this word occasionally gets used to mean other things) are privately held companies and the data you are asking for won’t be turned over for anything less than a court order. You’re going to have to back into it and even then you’re going to have a serious reliability problem. I would start with the annual reports of the public companies involved, both the mining companies and the cutting houses. You may be able to get data from the customs offices of the various importing and exporting countries like South Africa, Botswana, Canada, Russia, Israel, India etc.

 

Rio Tinto doesn’t sell or buy through the sights. What do they have to do with it? I’m curious what you’re planning on writing about. Can you tell us more about your proposed thesis?

 

Neil

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Hi Neil

 

 

Yes, my thesis is a bit strange… To be more precise: for my marketing class I am evaluating the possibilities for jeweler to work directly with the sightholder in order to get better prices. Therefore I wonder if there is any market data available to determine which might be the first companies to talk to.

 

 

Your idea to check the annual reports of publicly listed companies is very good – I will follow on that.

 

 

To my knowledge (please correct me if I am wrong) the term sightholder is a bit misleading: normally sightholder are companies which have the right to “sight†at DeBeers – currently a list of 94(?) companies. But as the market has changed (no quasi monopoly for DeBeers anymore) there are today also other mining companies (like Rio Tinto) who invite companies to come in and have a “sightâ€.

 

 

Kind regards,

 

Tobik

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The classic use of the term ‘sightholder’ is for the DeBeers distribution system through sights and is used to describe members of their customer list. Yes, I believe there are currently 94 of them but this does change occasionally. The term has become associated specifically with sellers of diamonds and there are tons of other uses out there. I’ve never heard Rio Tinto or any of the other major players use the word to describe their customers but I suppose there’s no reason that they couldn’t. Since it’s desirable for retail marketing reasons for the buyers to call themselves that I don’t see any reason for the sellers not to cooperate. Anyone who wants to can hold a ‘sight’ ranging from the mining companies to the auction houses so it’s kind of important to define your terms if you’re going to embark on a project like this. I would also recommend you define your product. Mine production is not what jewelers normally buy. Jewelers want finished diamonds or even finished jewelry. This involves quite a bit of intermediate work ranging from cutting to lab services to setting services and there are huge industries for all of these. There’s some fairly strong cash flow incentives for the mines to sell their entire production run fairly quickly and this leads to a need for intermediate buyers who will buy the production in quantity, deal with the next tier of services and then resell the finished product in smaller quantities and differently assorted lots over time. Pretty much any jeweler who wants to can assume the role of a cutting house and buy from the mines if they want to but there’s some major competition in that part of the industry and it’s a remarkably tough way to make a buck. It also involves a wildly different skill set than retailing. The entry barrier here is not DeBeers.

 

Neil

Edited by denverappraiser
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  • 2 weeks later...
Hi Neil

 

 

Yes, my thesis is a bit strange… To be more precise: for my marketing class I am evaluating the possibilities for jeweler to work directly with the sightholder in order to get better prices. Therefore I wonder if there is any market data available to determine which might be the first companies to talk to.

 

 

Your idea to check the annual reports of publicly listed companies is very good – I will follow on that.

 

 

To my knowledge (please correct me if I am wrong) the term sightholder is a bit misleading: normally sightholder are companies which have the right to “sight†at DeBeers – currently a list of 94(?) companies. But as the market has changed (no quasi monopoly for DeBeers anymore) there are today also other mining companies (like Rio Tinto) who invite companies to come in and have a “sightâ€.

 

 

Kind regards,

 

Tobik

 

 

Tobik,

 

I am going through a similar project as well. I have sent you a pm since I am at work currently but will send you some information that I have on my laptop from my findings. I will also post the information on here as to help other people ineterested in the information.

 

Thanks,

 

Omar

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Tobias,

 

My personal opinion from the information that I could gather and from the attempted emails to these sightholders is that greater savings can not be achieved unless you buy in bulk. The reason for this is that many of these companies have offices in all of the major diamond districts. This means that they know how much they should get for these diamonds and after all everyone is in to make the most profits possible. I am sure that you have found this site but I thought that I would list it:

 

http://www.keyguide.net/

 

This site lists the sightholders. I don't think that they are ranked in any particular order. As previously mentioned, this list changes because DeBeers has the right to stop selling rough diamonds to a company. The reason for this is that the sightholders have the right not to buy a set of diamonds if they don't see enough value. This is fine, but if it is done too many times, then DeBeers removes you from the list of sightholders.

 

Another sight that might provide a great of wealth to some of the demographics that you are looking for and that has helped me through my own MBA is

 

http://answers.google.com

 

In the search column you can put in like jewelry or diamonds and it will list any and all questions asked by people about the subject. The good part is that if you do not find the answer, then you can ask the question and google employees will find the answers. Your question has been asked and you can find a lot of good demographics on the jewelry industry. It provides links to the sites where this information is drawn from so you can seek out more ifnormation from the actual sites if you choose to.

 

Good luck in your project. I am happy to say that I am almost done with all of my projects for my MBA except for my Six Sigma Green Belt project. I graduate next month.

 

Hope to see you join the ranks of MBA graduates.

 

Take care,

 

Omar

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Hi Neil

 

 

Yes, my thesis is a bit strange… To be more precise: for my marketing class I am evaluating the possibilities for jeweler to work directly with the sightholder in order to get better prices.

 

I'm still confused about your thesis. Most of the DeBeers sightholders are in the business of buying rough diamonds, converting them into finished goods and reselling those finished goods to jewelry retailers. A few of them have retail divisions themselves and a few are brokering stones to the independent cutting houses. It sounds to me like you are asking if something is possible when it's already standard. Am I missing something?

 

Neil

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