Headlines

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

But De Beers and Alrosa are reluctant to slash prices.

Published

3 years ago

June 8, 2020

INSTORE Staff

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.

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

click to Comment(Comment)

Up Next

Signet to Close 380 Stores Permanently

Don't Miss

Fake Police Rob NYC Jewelry Store

INSTORE Staff

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at editor@instoremag.com.

When There’s No Succession Plan, Call Wilkerson

Bob Wesley, owner of Robert C. Wesley Jewelers in Scottsdale, Ariz., was a third-generation jeweler. When it was time to enjoy life on the other side of the counter, he weighed his options. His lease was nearing renewal time and with no succession plan, he decided it was time to call Wilkerson. There was plenty of inventory to sell and at first, says Wesley, he thought he might try to manage a sale himself. But he’s glad he didn’t. “There’s no way I could have done this as well as Wilkerson,” he says. Wilkerson took responsibility for the entire event, with every detail — from advertising to accounting — done, dusted and managed by the Wilkerson team. “It’s the complete package,” he says of the Wilkerson method of helping jewelers to easily go on to the next phase of their lives. “There’s no way any retailer can duplicate what they’ve done.”