"Common sense tells us that the only way to increase the value of
diamonds is to make them scarce, that is to reduce production."
We used to say "Nothing is forever,
Except, maybe, Neil Diamond."
But now, after being diagnosed with Parkinson's, even Neil has stopped touring.
Nothing is forever.
From Mining.com via SafeHaven, September 11:
Is Diamond Demand Crumbling?
Anglo American’s De Beers, the world’s No.1 diamond miner by value, has just had the lowest sales for its seventh cycle since it began releasing data in 2016, as it let customers delay acquiring smaller stones for the first time.
Sales for the cycle stood at a provisional $505 million, down 5.5 percent from the $533 million obtained in the previous cycle of the year and 0.4 percent from $507 million for same period in 2017.
“De Beers Group provided Sightholders with the opportunity to re-phase the allocation of some smaller, lower value rough diamonds.” chief executive officer, Bruce Cleaver, acknowledged in the statement....MORE
The unusual move (De Beers is known for requiring buyers to take what’s offered) says lots about the state of the low-end diamond market. The last time the company did something similar, in fact, was two years ago, when India’s move to ban high-value currency notes pushed down demand.
Sales were down $134 million, or 21 percent compared to the same cycle in 2016, when De Beers began releasing this kind of data.
The diamond giant has about 80 handpicked clients called ightholders who are allocated parcels of diamonds sorted and aggregated in Gaborone. The 10 annual sales events are known as sights.
De Beers’ new strategy for small stones, paired with its looming entry into the lab-grown stones market, have many in the industry worrying about prices.
Cheaper diamonds, which are often small and low quality, are selling for a lot less now than five years ago. And when it comes to synthetic stones, De Beers’ entry in the market will create a big price gap between mined and lab diamonds, pressuring rivals that specialize in synthesized stones at the same time.
A 1-carat man-made diamond sells for about $4,000 and a similar natural diamond fetches roughly $8,000. De Beers new lab diamonds will sell for about $800 a carat. That’s a fifth of the price of existing man-made stones and one-tenth of the cost of buying a similar natural gem.
No wonder competitors are worried. The lab-grown industry has filed a complaint with the U.S. Federal Trade Commission, accusing De Beers of price dumping and predatory pricing....
Related:
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Commodities: Russia's Diamond Hoard Has the Potential to Crush the Diamond Market (or not)
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"Have You Ever Tried to Sell a Diamond?"
Paper Diamonds: How Do You Standardize Rocks So They'll Fit Inside An ETF Wrapper?
You Thought the Rio Tinto Red Diamonds Were Baubles, You Dismissed the 118 Carat 'Perfect' Being Auctioned Tomorrow as Crass, Perhaps Monsieur et Madame Would be Interested In...
...The Pink Star
Diamonds: Have You Been Depressed Since DeBeers Was Delisted? Hangdog Since Harry Winston Split? Cheer Up Bunky, There's Always Alrosa
