Big names such as for example De Beers are grappling by having a downturn that is cyclical and a long-lasting challenge from synthetic diamonds. The market could be changed by it beyond recognition. Simon Wilson reports.
What’s took place?
The worldwide market in diamonds, worth $90bn per year, is slowing significantly, states De Beers, the company who has dominated the business enterprise considering that the nineteenth century. De Beers, now 85%-owned by Anglo United states whilst the federal federal government of Botswana holds 15%, enjoyed a near monopoly on diamond production for most of the century that is 20th. It coined one of the more effective marketing slogans of all of the time – “A Diamond is Forever” – whilst still being makes up about 35% of worldwide mined diamonds. This present year the volumes it really is attaining at deals to its “sightholders” (authorised purchasers who plan the rough diamonds for onward purchase in to the retail market) have actually plunged. October’s auction saw a 39% year-on-year autumn in product sales to $295m. (więcej…)