De Beers holds immense unsold diamond inventory – FT
The company is experiencing gemstone inventory levels of approximately $2 billion as demand continues to decline. Read Full Article at RT.com.
TroibNews 
The precious stone market is confronted with weak demand and escalating competition.
De Beers Group is currently sitting on its largest diamond inventory since the 2008 financial crisis, as reported by the Financial Times on Wednesday, referencing the company's press office. Dominating the $80 billion diamond jewelry industry, De Beers has seen its inventory levels stabilize around $2 billion throughout 2024.
The downturn in demand has been linked to sluggish sales in China, increased competition from lab-grown diamonds, and the lasting effects of the Covid-19 pandemic, which disrupted marriage rates globally. “It’s been a bad year for rough diamond sales,” said CEO Al Cook.
To address the downturn, De Beers has reduced production by approximately 20% compared to last year and lowered prices during its most recent rough diamond auction. These auctions sell uncut stones to a select group of certified buyers known as sightholders, who play a crucial role in the diamond trade.
Revenue for De Beers decreased to $2.2 billion in the first half of 2024, down from $2.8 billion in the same period of 2023. This decline aligns with De Beers' preparations for a spin-off from its parent company, Anglo American, which has committed to divesting the diamond producer following a foiled takeover attempt by BHP. Anglo American CEO Duncan Wanblad has noted that the weak market complicates potential sale or public offering plans.
In light of the market challenges, De Beers initiated a marketing campaign in October aimed at emphasizing the distinct appeal of natural diamonds. Cook shared strategies for the company to invest in advertising and expand its network of global stores from 40 to 100.
Competition from lab-grown diamonds, which are significantly cheaper than natural stones, has intensified, especially in the US—the largest diamond market in the world. However, Cook remains optimistic about a global recovery in 2024, pointing to recent credit card data that indicate an uptick in US purchases of jewelry and watches during October and November.
Industry analyst Paul Zimnisky has predicted a 6% growth in global diamond jewelry sales, reaching $84 billion by 2025, providing a glimmer of hope for a market rebound.
Emily Johnson for TROIB News
De Beers Group is currently sitting on its largest diamond inventory since the 2008 financial crisis, as reported by the Financial Times on Wednesday, referencing the company's press office. Dominating the $80 billion diamond jewelry industry, De Beers has seen its inventory levels stabilize around $2 billion throughout 2024.
The downturn in demand has been linked to sluggish sales in China, increased competition from lab-grown diamonds, and the lasting effects of the Covid-19 pandemic, which disrupted marriage rates globally. “It’s been a bad year for rough diamond sales,” said CEO Al Cook.
To address the downturn, De Beers has reduced production by approximately 20% compared to last year and lowered prices during its most recent rough diamond auction. These auctions sell uncut stones to a select group of certified buyers known as sightholders, who play a crucial role in the diamond trade.
Revenue for De Beers decreased to $2.2 billion in the first half of 2024, down from $2.8 billion in the same period of 2023. This decline aligns with De Beers' preparations for a spin-off from its parent company, Anglo American, which has committed to divesting the diamond producer following a foiled takeover attempt by BHP. Anglo American CEO Duncan Wanblad has noted that the weak market complicates potential sale or public offering plans.
In light of the market challenges, De Beers initiated a marketing campaign in October aimed at emphasizing the distinct appeal of natural diamonds. Cook shared strategies for the company to invest in advertising and expand its network of global stores from 40 to 100.
Competition from lab-grown diamonds, which are significantly cheaper than natural stones, has intensified, especially in the US—the largest diamond market in the world. However, Cook remains optimistic about a global recovery in 2024, pointing to recent credit card data that indicate an uptick in US purchases of jewelry and watches during October and November.
Industry analyst Paul Zimnisky has predicted a 6% growth in global diamond jewelry sales, reaching $84 billion by 2025, providing a glimmer of hope for a market rebound.
Emily Johnson for TROIB News
