The latest sales data from De Beers reinforces why this is one of the worst years for the diamond industry in a long time.
The Anglo American Plc subsidiary reported sales on Thursday that showed demand for rough diamonds is continuing to plunge as polishers and traders refuse to buy stones when they can’t make a profit.
The mining company holds 10 sales events each year in Botswana, where its chosen buyers — known in the industry as sightholders — are given a box containing plastic bags filled with diamonds. In the past three sales, De Beers made less than $300 million, which is unprecedented in data going back to 2016.
The crisis in the diamond industry stems from an oversupply of polished gems, which has depressed demand for rough stones. Much of the polishing and trading industry is based in India, where companies have been squeezed by tight bank financing and currency fluctuations.
However, it’s unlikely that shoppers will see much change in jewelry prices at the retail level. Those prices tend not to fluctuate and reflect other costs, like marketing and labor.
For the rest of this article: https://www.bloomberg.com/news/articles/2019-10-03/de-beers-diamond-sales-flounder-again-as-buyers-stay-away