De Beers has reportedly been offering rough diamonds at reduced prices to a limited number of trading partners, according to buyers familiar with the matter. These transactions, which fall outside the company’s standard sales framework, are said to involve discounts ranging from 10% to 20% off official prices. De Beers has not publicly confirmed the details of these arrangements and declined to comment when approached.
Under usual practice, De Beers conducts ten scheduled sales each year in Botswana for a group of approximately 70 authorised customers, known as sightholders. Prices at these events are fixed, and while purchases are not mandatory, repeated refusals can potentially impact future allocations.
Inventory Management and Market Conditions
The reported sales are understood to be part of efforts to manage stock levels without implementing formal price reductions. De Beers typically avoids broad price adjustments due to the potential implications for rough diamond valuations across the market.
Some within the trade have expressed concern over the lack of visibility regarding these reported side transactions and the criteria used to determine buyer selection. There are also questions about the possible implications for pricing competitiveness in the polished goods segment.
Parent Company Strategy and Business Developments
The reports come as De Beers is operating within the framework of broader cost-efficiency measures initiated by parent company Anglo American Plc. As part of its strategic review, Anglo is exploring the potential sale of its diamond business and has directed De Beers to manage costs and inventory levels closely.
“De Beers itself is under pressure from Anglo to reduce costs and stem losses. The larger miner is seeking to sell the diamond business as part of its own turnaround strategy announced last year. While a sale may take some time, De Beers’s management is under strict instructions to stop building stockpiles of unsold stones. De Beers has also been drastically cutting costs, including shuttering its lab-grown Lightbox unit last week.”
Buyer Participation and Allocation Policy
Over the past year, there have been reports of reduced purchasing activity at De Beers’s regular sales events, with some customers opting not to attend or buy due to price differences with the secondary market.
In late 2023, clients were informed that the list of authorised buyers could be reviewed and potentially reduced from 2026 onwards. This has led to some speculation about how access to supply may evolve in the coming years.
“Now, buyers who haven’t been tapped for discounted deals are complaining there’s a lack of transparency about which customers have been selected and why. Some customers also risk being undercut by rivals when it comes to selling polished stones to retailers.”
Global Trade Context
The diamond industry continues to navigate external trade challenges, particularly in relation to tariffs on goods entering the United States. The current 10% duty on diamond imports may increase following the end of a 90-day moratorium on reciprocal tariffs.
“The unusual move by De Beers comes as the battered diamond market grapples with the implications of Trump’s import tariffs. The US is the world’s biggest diamond market but doesn’t mine any gems itself. Roughly 90% of diamonds are manufactured in India’s giant cutting and polishing centers.”
“All diamond imports to the US are currently subject to a 10% tariff, and face further levies when the 90-day pause on reciprocal tariffs comes to an end.”
“Traders have already poured large volumes of stones into the US market to get ahead of tariffs, but fear a slump in demand if US consumers are forced to pay more because of the levies. Purchases have slowed as companies responsible for cutting and polishing worry about being stuck with inventory that is no longer profitable to sell to the US. The industry is lobbying for an exemption from tariffs.”
Ongoing Market Considerations
These reported sales, and the wider changes in trade and buyer dynamics, come at a time of continuing adjustment within the diamond supply chain. For jewellers and traders, the implications may include increased focus on pricing alignment, supply access, and market transparency.
As the industry observes further developments, the long-term effects of any adjustments to De Beers’s sales practices remain to be seen.
