Proudly sponsored by

De Beers raises diamond prices most in years

Sales recover after pandemic freeze.
Image: Bloomberg

De Beers implemented its biggest price increase for diamonds in years as the industry starts bouncing back from the pandemic-induced shutdown.

The world’s biggest diamond producer raised prices by about 5% at its first sale of the year, according to people familiar with the situation who asked not to be identified because the information is private. The increases mostly applied to stones bigger than 1 carat, the people said.

The diamond industry has surprised many by the speed of its recovery after being brought to a complete standstill in the first half of last year. Crucial holiday sales in the US and China were strong, while a shortage of stock held by industry middlemen created strong demand.

De Beers doesn’t publicise price changes, but it’s probably one of the steepest increases since the early part of last decade, the people said. A spokesman for De Beers declined to comment.

There were signs of recovery in the fourth quarter of 2020 as rough-diamond buyers started replenishing stocks to prepare for the industry’s most important selling period: Thanksgiving to the Chinese New Year. De Beers’s business started rebounding, and the Anglo American Plc unit was able to edge prices higher in the last sale of the year in December.

That’s in stark contrast to the industry’s fortunes at the early stages of the pandemic, when sales collapsed, and diamond retailers and factories closed. De Beers responded by curtailing production, leading to a tighter supply just as shoppers returned to stores in parts of China and the U.S.

© 2021 Bloomberg

COMMENTS   1

You must be signed in to comment.

SIGN IN SIGN UP

Many of their subsidiaries have massive cashflow problems but are sitting on large stockpiles. Thats not always a good thing. The next few months will be telling and should sales drop again blood will flow down the streets.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles: Advanced Search
Click a Company: