Statement from Martin Rapaport Includes Choice Words for De Beers

“De Beers must not repeat their mistakes of last year …”

Martin Rapaport, the chairman of the Rapaport Group that advocates for the diamond market, penned a spirited column that includes some recommendations for De Beers following its recent price cut of rough diamonds that resulted in a $540 million sales windfall. While Rapaport praises the mining company’s decision to reduce prices, he also offers criticism, saying that “De Beers must not repeat their mistakes of last year by overpricing rough diamonds that result in a sharp decline in diamond manufacturing, polished shortages and bullwhip effects that increase volatility and uncertainty.”

He also recommends that De Beers ramp up marketing efforts to stoke demand for generic diamonds, saying that increased advertising is the “right way forward” and helps the company “move away from the disastrous zero-sum game they have been playing with the diamond trade.”

Read more at Rapaport