De Beers Introduces Forward Contract Sales for Auction Customers

(IDEX Online News) – De Beers today (Wednesday) announced that it will begin providing its rough diamond auction customers with an opportunity to determine the volume of goods they want to purchase, over a given period, through the introduction of forward contract sales. Approximately 10 percent of De Beers’ rough diamonds are currently sold through its auction platform.

The company said the introduction of forward contract sales will enable its customers to “engage in forward planning, and help them meet their business requirements.”

The company also announced that as part of its attempt to focus on the needs of existing customers while building a long-term offering to emerging market customers in India and the Far East, it will relocate the purchasing, production and sales base for its auctions to Singapore. The move will take effect from November 2013.

“Offering forward contract sales through our auction platform, and moving the base of our auction sales to Singapore, will further enhance our compelling proposition to a diversified global customer base, support our position as the leading distributor of rough diamonds via online auctions, and deepen our insight into rough diamond demand,” said Philippe Mellier, CEO of the De Beers Group.

The company said it will continue to operate its existing network of auction viewing offices in Antwerp, Israel, Dubai and Hong Kong. It will also continue to hold spot auction events.