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De Beers cuts low-priced diamonds



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LONDON (AFP)


Posted in:
Tuesday, November 13, 2018 – 04:07
| Last update:
Tuesday, November 13, 2018 – 04:07

LONDON (Reuters) – British miner De Beers cut prices of its low-grade diamonds by a significant margin this week, well-informed sources said.

The world's largest diamond maker has slashed prices of low-grade diamonds by as much as 10 percent, according to unidentified sources at the Bloomberg news agency.

De Beers sells rough diamonds to buyers who cut, polish and manufacture them in polished stones sold in jewelers.

Although there is a direct correlation between the prices of the sale of rough diamonds and polished diamonds, it is unlikely that the sale of their production prices by De Beers would lead to a change in the sales prices of final consumers.

News of the decline in gross diamond prices led to a decline in US jewelry inventory prices, with Tiffany's share price falling 3.6%, while France-based Societe Julierz fell 6.1% .

The low-grade diamond trade sector, which is generally small and defective, suffers from oversupply. Major diamond polishing and polishing centers such as Surat in India are suffering from lower margins and the devaluation of the Indian rupee against the dollar.

There are also fears that the industry will become more difficult if De Beers turn to the sale of industrial diamonds, especially in the low-end diamond market.

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