De Beers Makes Concessions To Sightholders, Market

Market Analysis
08/09/2015 14:17

The issue Sightholders have is that, compared to polished, the price reduction of rough goods has not caught up with the decline in polished prices. Looking at the same three boxes, compare their price declines to those of the resulting polished. It is this very gap that Sightholders are speaking of [see graph]... De Beers is making efforts to play a positive role, as viewed from Sightholders’ perspective. Prices were reduced, the volume was cut down and greater flexibility in supply was offered. On top of this, De Beers announced plans for a generic diamond campaign in addition to Forevermark’s “A Diamond is Forever” holiday campaign. And yet, Sightholders’ sentiment is very low, they do not express any optimism for the near future, as they are concerned by the many defaults in the market, the receding polished prices, and the continued uncertainty. They simply don’t see relief in sight.

- Edahn Golan