De Beers Raises Prices 4% at Its $600M May Sight

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home3_polished-loupeThe De Beers May sight had an estimated value of $600 million as the company raised its rough diamond ‎prices by approximately 4 percent. The price hike reflected a change in list prices on ‎various goods as well as adjustments made to De Beers box assortments. ‎

Dealers noted that trading on the secondary market was significantly reduced following the ‎sight that ended on May 9 as De Beers goods are now selling at around list price, erasing the 5 percent ‎premiums they had gained in the past few months. ‎

One India-based sightholder noted that they were in fact losing money on the secondary ‎market when accounting for the various broker fees and other costs associated with the ‎goods. “Sightholders are losing money so they don’t want to sell,” he explained. “So ‎they’re putting everything into manufacturing. We may not make so much money in ‎manufacturing but at least we’re not losing.”‎

Factories in India have maintained cautious manufacturing levels, which are expected to ‎remain well below capacity in the coming months, especially during the May summer ‎vacation period.‎

Most sightholders who spoke with Rapaport News were frustrated by the sight and ‎expressed surprise at the price hike as it followed an increase of approximately 3 percent ‎implemented  in April.   ‎

“As manufacturers, we’re again in that awkward position where we have to pay more for ‎the rough and we have to fight for our prices on the polished,” said one Antwerp-based ‎sightholder. “But we really don’t get a return on the goods and that’s very dissatisfying.”‎

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