De Beers Drops Prices ~9% at Sight

(IDEX Online News) – De Beers is believed to have dropped prices by as much as 9 percent at its latest Sight, which began yesterday. The Sight is also estimated to be very small, valued at $250 million.

However, despite the price drop, which clients have long been clamouring for, traders are still not satisfied. “Some say it’s a step in the right direction,” says Guy Harari of online rough diamond brokerage bluedax.com. “We don’t remember a price drop cut like this for many years, but even after the reduction, making any profit after manufacturing is still a big challenge.”

He also noted that as the Sight continued, a number of clients are reporting that De Beers has downgraded some of its assortments, which also contributed to the drop in price.  

At last week’s Alrosa Sight, the Russian company finally changed its policy and allowed clients to leave goods on the table, without facing any possible consequences in the future. And that is exactly what happened. According to Harari, more than 80 percent of goods were rejected.

Unfortunately, this latest Sight period is coinciding with a tumble in the stock market, which is leaving many buyers, especially those in the secondary market, very cautious about what could be a precarious financial time ahead.

Although potential trading on the secondary market has not yet moved into full swing, Harari says trade following this Sight cycle is likely to be very subdued. “People are not jumping at the goods, even with the price reduction. They are scared that the demand for polished is just not there.”