De Beers is likely to allow its diamond buyers to refuse some lower-quality stones at its sale this week, says news reports.
The news report mentions that De Beers is known for requiring buyers to take what’s offered and highlighting the weak state of the low-end diamond market. Back in 2016, the company had mad similar gesture in 2016, when India’s move to ban high-value currency notes depressed demand.
Further the news report mentioned that prices for cheaper stones, which are often small and low quality, have fallen in recent years. The market has been affected by too much supply, lower profit margins in major cutting centers such as Surat in India and the depreciation of the Indian rupee. There’s also new competition from man-made gems, such as De Beers’s Lightbox brand.
The Sightholders will still have to purchase their quota of gems before the end of the year, mentioned the news report. By delaying their purchases, buyers are hoping that demand will pick up during the gift-giving festival of Diwali, in early November.
Source: Bloomberg
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