De Beers Generates $450m from January Sight

De Beers sortingGaborone: De Beers is said to have earned about $450 million from its first sight of 2015, which ended recently in Botswana.

Rapaport cited unnamed sightholders as saying that a number of boxes were deferred, representing about 20 percent of the overall sight value.

Allegedly, rough diamond prices declined by about 4 percent and De Beers made significant price adjustments across the board.

“I don’t know of a single box at the sight on which people will make money,” a sightholder from Israel said.

“A lot of people were complaining and said that if the rough price structure remains the same at the next sight they won’t be able to purchase most of the goods.”

However, some sightholders thanked De Beers, which relaxed deferral rules this month and embarked upon a gradual rough price correction to ensure market stability.

“It is better that De Beers address the problem in a gradual and sustainable way instead of correcting prices in one shot,” said a sightholder from India. “Even if they lowered prices by 8 to 10 percent it will not solve the situation because it would encourage people to start speculating on rough prices again, in particular the dealers.”