JB Insights
De Beers divestment: A strategic pivot amid diamond industry decline
Anglo American is poised to formally initiate the sale of its troubled diamond division, De Beers, within weeks, marking the end of an era for one of the world’s most iconic luxury brands. According to Financial Times reports, the mining giant may have to accept approximately $2.5 billion for the asset—roughly half of its current $4.9 billion book value and a dramatic decline from the $7.6 billion valuation recorded in December 2023.
This precipitous value erosion reflects the severe structural challenges plaguing the natural diamond industry. The sector faces a perfect storm of weakened global luxury demand, persistent economic uncertainty, and the rapid ascendancy of lab-grown diamonds. These synthetic alternatives, chemically identical to natural stones but produced in weeks rather than millennia, have captured significant market share while offering consumers similar aesthetics at substantially lower prices.
The urgency behind Anglo’s divestment stems from CEO Duncan Winblad’s commitment to complete the sale by end-2025, but more fundamentally from the company’s strategic transformation following BHP’s failed acquisition attempt. Having already divested steelmaking coal, nickel, and platinum operations, De Beers represents the final piece of Anglo’s portfolio restructuring. The company is pivoting toward assets with stronger long-term fundamentals, particularly copper, which benefits from electrification and renewable energy trends.
De Beers’ own adaptation efforts have proven insufficient. Its controversial entry into the lab-grown market through the Lightbox brand failed to stem declining profitability, while the traditional “A Diamond is Forever” positioning becomes increasingly difficult to maintain against cost-effective synthetic alternatives focused on value and ethical sourcing.
The challenge for Anglo extends beyond finding a buyer willing to pay $2.5 billion—it requires identifying an acquirer with a credible turnaround strategy for a structurally challenged business. Private equity firms might pursue leveraged restructuring opportunities, while sovereign wealth funds could view diamond assets as portfolio diversifiers. However, any serious buyer will demand significant operational improvements and cost reductions that could fundamentally reshape De Beers’ business model.
This divestment reflects broader mining industry trends, with companies increasingly prioritizing assets aligned with energy transition demands while shedding sectors facing structural headwinds. The diamond industry’s struggles serve as a cautionary tale about technological disruption’s capacity to rapidly erode even the most established market positions.
Whether Anglo achieves its $2.5 billion target or settles for less, the transaction represents pragmatic acknowledgment of changed market realities and demonstrates the importance of strategic flexibility over emotional attachment to legacy assets in an era of rapid transformation.
JB Insights
The Role Of Hallmarking and Transparency In Strengthening Consumer Confidence
By Suresh Krishnan, Vice President – Sales, PNG Jewellers
In India, jewellery is equally an emotional purchase and a significant financial transaction. As consumers become more informed and digitally empowered, trust is increasingly becoming a decisive factor alongside design, price and brand reputation. Hallmarking has played an important role in creating that trust by giving consumers third-party assurance of precious-metal purity.
India’s hallmarking ecosystem has expanded significantly. BIS data shows that hallmarking registrations increased from 34,647 to 1,37,315 between April 2021 and March 2022 *1, while more than 8.72 crore gold and silver articles were hallmarked during that year. The introduction of the six-digit Hallmark Unique Identification (HUID) in 2021 has further strengthened traceability. Consumers can verify a gold article’s HUID through the BIS CARE app, adding an independent layer of assurance at the point of purchase.
For an organised retailer, this becomes particularly relevant as jewellery discovery increasingly moves online. A customer may discover a product on social media, compare it on an e-commerce platform and complete the transaction digitally. In such a journey, hallmarking helps bridge the trust gap created by the absence of physical touch and feel. When purity is independently verifiable, consumers can make online purchases with greater confidence.
The opportunity is also expanding beyond gold. BIS has brought both gold and silver under its hallmarking framework. In FY2024-25, more than 32 lakh silver jewellery articles*2 were hallmarked. The revised IS 2112:2025 introduced HUID-based hallmarking for silver on a voluntary basis from September 2025, creating greater traceability and consumer assurance in a category that is increasingly relevant to younger and value-conscious buyers.
This evolution matters commercially. KPMG’s India CX Report 2025*3 found that 27% of fine-jewellery customers are more confident in authenticity, quality and value when they trust a brand, while 9% said they would explore another brand if jewellery appeared overpriced for its quality. These findings underline why trust is not simply a compliance issue; it directly influences consideration and willingness to pay.
Contributing to the larger goal of organised and transparent trade, hallmarking has now been integrated as part of the broader customer experience across stores, CRM and e-commerce. As India’s jewellery market becomes increasingly omnichannel, the brands that communicate purity, pricing and policies clearly will be better positioned to convert digital discovery into purchase and, more importantly, build relationships that extend beyond a single transaction. The future of jewellery retail will therefore be defined not only by what consumers see, but by how confidently they can verify what they are buying and hallmarking takes care of that concern efficiently.
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