Wednesday, June 5, 2024
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De Beers Reports 21% Decline in Fourth Sales Cycle

Gaborone, Botswana— De Beers Group has reported a significant decline in rough diamond sales for the fourth sales cycle of the year, with a 21 percent drop compared to the same period last year.

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The latest sales totaled $380 million, down from $479 million in the fourth sales cycle of 2023. This also represents a 15 percent decrease from the third sales cycle of 2024, which totaled $446 million.

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Year-to-date, De Beers’ sales are now 17 percent lower than last year, amounting to $1.63 billion compared to $1.97 billion in the previous year. The decline comes amid seasonal factors and various challenges, including competition from lab-grown diamonds, geopolitical issues stemming from Russia’s war in Ukraine, and potential changes in corporate ownership.

De Beers CEO Al Cook attributed part of the slowdown to seasonal trends and quieter trading in India due to ongoing general elections, which run through June 1. He also noted that short-term macroeconomic issues are likely to continue impacting natural diamond demand in the U.S.

Despite these challenges, Cook remains optimistic about the future, particularly in the engagement ring market. He anticipates a recovery in engagements as relationships formed post-pandemic mature.

In a strategic move, De Beers announced a collaboration with Signet Jewelers on a marketing campaign targeting “zillennials” (individuals born between the millennial and Gen Z generations) with a focus on promoting natural diamonds. This campaign is set to launch in the third quarter.

“As expected, De Beers’ rough diamond sales in the fourth cycle of the year trended lower, in line with the seasonally slower second quarter and a quieter period of trading in India during the elections,” Cook said. The focus of the global diamond industry now turns towards the JCK jewelry show in Las Vegas at the end of May. Demand trends in the U.S. are expected to be driven by short-term macroeconomic issues but supported in coming years by a recovery in engagements as the after-effects of pandemic lockdowns fade.”

De Beers’ parent company, Anglo American, recently confirmed it is exploring the possibility of divesting the diamond miner as it shifts its focus to “green” energy commodities like copper.

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Alice
Alice
Alice is a seasoned jewelry designer renowned for her exquisite creations that seamlessly blend artistry with elegance. With a passion for craftsmanship and an unwavering commitment to quality, Alice has established herself as a distinguished figure in the world of fine jewelry. Drawing inspiration from diverse cultures and artistic movements, Alice brings a unique perspective to her designs, creating pieces that transcend mere accessories to become timeless works of art. Her meticulous attention to detail and insistence on using only the finest materials ensure that each creation reflects not only her artistic vision but also a commitment to unparalleled craftsmanship. Having honed her skills through years of dedicated practice and a keen understanding of evolving trends, Alice is adept at translating her clients' desires into bespoke, one-of-a-kind pieces. Her portfolio encompasses a range of styles, from classic and timeless to avant-garde and contemporary, showcasing her versatility and ability to cater to a diverse clientele.

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