De Beers lowers the price of diamonds for the first time in years as the industrial crisis gets deeper
- De Beers said it will lower prices by five percent before it is sold in Botswana
- The diamond market is currently in crisis due to an abundance of cheap stones
- Family traders in Belgium, Israel and India survive on a lean return
& # 39; The world's largest diamond company has reduced its wholesale prices by five percent, but it is unlikely that this will result in lower retail jewelry costs.
De Beers, & # 39; the world's largest diamond producer, lowered prices by five percent for its November sales, according to nearby sources.
Profits in the industry have plummeted for De Beers intermediary customers who purchase rough stones from the diamond giant.
& # 39; De Beers rough diamond price reduction is probably intended as a way to help restore the profitability of its customers, who are mainly diamond manufacturers, ie diamond workers and polishing machines, in India & # 39 ;, Diamond Market Analyst said, Paul Ziminsky, at MailOnline.
& # 39; In particular, this price reduction will not necessarily lead to a price reduction for consumers. & # 39;
De Beers, & # 39; the world's largest diamond producer, lowered prices by five percent for November sales
People walk past the American luxury store Tiffany & Co. & # 39; s in Paris on October 29, 2019. De Beer's buyers, including Tiffany & Co., buy rough stones from the diamond giant, but some of these intermediaries and companies struggle to to earn a living during the industrial crisis
An employee shows an uncut diamond of 109 carats with an estimated value of up to $ 2 million in this arranged photo at DTC Botswana, a unit of De Beers, in Gaborone, Botswana, in 2012. Although the middlemen, also known as & # 39; sightholders & # 39 ;, perhaps making more money, it is unlikely that the lower costs will trickle into the retail market
Family traders in Belgium, Israel and India survive on low returns, as do subsidiaries Tiffany & Co and Graff Diamonds.
The current crisis is due to low prices and a flood of diamonds that overload the market.
Despite the lack of dripping to the consumer due to this specific fall in prices from De Beers, Ziminsky said that diamond prices for retail are in fact among the lowest in years.
& # 39; Based on my analysis, the polished diamond prices at the retail level fell by no less than 9 percent in 2019, & # 39; he said.
An employee uses a magnifying glass to inspect a finished pear-shaped diamond before final classification at the Shrenuj Botswana Ltd viewing office in Gaborone, Botswana, in 2012. De Beers once had a monopoly
From its founding in 1888 to the beginning of the 21st century, De Beers held a monopoly position on the world's diamond reserves and controlled 80 to 85 percent stones around the world.
Although competition has increased, they can still set prices and dictate market costs.
De Beers has refuted the claims that the demand for diamonds has declined.
Intermediaries, known as & # 39; sightholders & # 39 ;, buy stones at De Beers, against 10 sales per year in Botswana & # 39; s capital Gaborone.
Buyers must accept prices and quantities – at a reduced rate.
Some sightholders have said they are struggling to earn a living with the shrinking deals.
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