Connect with us

Headlines

COVID-19 ‘Devastated’ the Diamond World, Leaving Producers with Billions in Excess Inventory

But De Beers and Alrosa are reluctant to slash prices.

mm

Published

on

Bloomberg reports that the COVID-19 pandemic has “devastated” the diamond industry, leaving the top five producers with a combined $3.5 billion in unsold inventory.

The coronavirus hit the business from several angles. Jewelry stores were largely closed. Cutting and polishing professionals in India were unable to go to work. De Beers canceled a March sale because would-be buyers were unable to travel to see the diamonds.

Now De Beers, Alrosa and other major producers need to get rid of the excess inventory. De Beers and Alrosa have been reluctant to slash prices and have instead cut bac on production and have been liberal in allowing buys to back out of contracts.

Still, Bloomberg reports that excess diamonds could total $4.5 billion by the end of 2020.

“The question will be, how does this destocking occur? Can miners destock and keep protecting the market?” Anish Aggarwal, partner at Gemdax, was quoted saying.

Some smaller diamond companies have been much more willing to reduce prices, Bloomberg reports.

Advertisement

Aggarwal told the news outlet that it’s “hard to speculate on what the recovery curve will look like.” But consumer demand, he said, is not likely to spring back quickly.

Read more at Bloomberg

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at [email protected].

Continue Reading
Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

Retirement Made Easy with Wilkerson

The store was a landmark in Topeka, Kansas, but after 80 years in business, it was time for Briman’s Leading Jewelers to close up shop. Third generation jeweler and owner Rob Briman says the decision wasn’t easy, but the sale that followed was — all thanks to Wilkerson. Briman had decided a year prior to the summer 2020 sale that he wanted to retire. With a pandemic in full force, he had plenty of questions and concerns. “We had no real way to know if we were going to be successful or have a failure on our hands,” says Briman. “We didn’t know what to expect.” But with Wilkerson in charge, the experience was “fantastic” and now there’s plenty of time for relaxing and enjoying a more secure retirement. “I would recommend Wilkerson to any retailer considering a going-out-of-business sale,” says Briman. “They’ll help you reach your financial goal. Our experience was a tremendous success.”

Promoted Headlines

Most Popular