(Ecofin Agency) – De Beers has built its success by controlling the supply of diamonds on the market, in order to adapt it to demand. In periods of low demand and falling prices, as has been the case for at least 2 years, this strategy requires it to build up ever-larger stocks.
In 2024, De Beers built its largest diamond inventory by value since 2008, with a total of stones valued at approximately USD 2 billion. This is what the Financial Timesquoting Al Cook, CEO of the diamond dealer of South African origin.
This situation is explained by a difficult year in terms of sales, with the company postponing certain auctions and granting flexibilities on purchases to its usual customers. De Beers was counting all year on an improvement in the market, in particular an increase in demand which would have enabled it to sell its stocks at better prices. “ It’s been a bad year for rough diamond sales » recognizes Al Cook.
While awaiting the publication of its annual results, we note that its revenues as of 1is half-year actually fell by 20% year-on-year, in a context where the attraction for natural diamonds is decreasing in favor of synthetic diamonds. Produced in the laboratory, the latter are considered more ethical and are also less expensive, while the slowdown in the global economy affects the purchasing power of consumers.
Despite this, De Beers believes it is possible to revive consumer interest in natural diamonds, particularly through marketing campaigns. The company believes that it could do better after the announced split with its parent company Anglo American. The British group announced in 2024 the sale or IPO of its subsidiary, as part of a broader restructuring process.
Emiliano Tossou
Swiss
