DiamondBuzz
Premiums Return for Larger De Beers Diamonds Amid Supply Shortages
De Beers Resumes Auctions for Sightholders After One-Year Pause, Introducing Tender-Style Format
Shortages of larger De Beers diamonds are driving premiums of up to 7% on the secondary market, following a period when sightholders struggled to resell for profit, industry insiders told Rapaport News. Companies that purchased 5- to 10-carat goods at the recent sight, which began on Monday, received bids ranging from 3% to 7% above the De Beers list price, market sources shared on Tuesday.
The “select makeable” category in this size range — which yields 1.5- to 3-carat polished diamonds with an average color of I and average clarity of SI — commanded premiums at the higher end of the range. It remains uncertain whether sightholders agreed to sell at these higher prices.
De Beers customers, who buy rough diamonds at sights, can resell them, but weak demand in recent years had restricted their ability to generate margins, known as premiums, on these transactions. Recent production declines in India have created shortages in both polished and rough diamonds, resulting in a modest improvement in rough demand as factories seek to fulfill orders from the U.S. and India’s domestic market.
“There’s a shortage of goods — you have less stock in India and less production,” said a sight broker who received an offer of 7% above the list price for 5- to 10-carat “select” goods on behalf of a client. (The deal never went through.) “People are starting to [buy] more and more goods.”
The broker estimates premiums of 3% to 4% for “commercial” 5- to 10-carat diamonds, which generally have higher yields than select makeables but produce more polished diamonds with black inclusions. Shortfalls in larger rough diamond sizes were evident at the previous sight in February, though sources remain unsure whether this reflects production cuts, De Beers’ strategic withholding of supply, stronger demand for 2-carat and larger polished diamonds, or a combination of all three.
“There’s no ‘select’ right now on the market,” said a second market source. “Everybody is talking about it because, for a long time, there weren’t any premiums. But we’re talking about very few boxes.”
De Beers is also relaunching its auction sales after a year-long hiatus. The first auction in the current sales cycle will be held in Gaborone, marking a move from Singapore to the Botswana capital. The company announced this shift last April and had paused its auction operations during the transition.
The new auction format will be exclusive to sightholders, with goods primarily focused on larger stones, according to a De Beers spokesperson. Unlike previous auctions, the event will feature a tender-style format with closed bids, meaning participants will not be aware of competing offers.
“As we look to reestablish regular sales events for auctions, we will initially run a small-scale event in cycle 3 for sightholder customers with a relatively small amount of product enabling the testing of the platform,” the spokesperson explained. “We will subsequently look to develop a longer-term plan for future events, including the timeline and commercial approach.”
The suspension and subsequent resumption of auctions reflect the ongoing market downturn and recent modest improvements, according to a third source.
“While we are encouraged by recent signs of improvements in the rough-diamond trading sector, we will continue to adopt a prudent and watchful approach to supply,” De Beers added.
While prices and flexibility terms remained stable at the current sight, dealers anticipated a slight improvement in demand compared to earlier sales this year, as sightholders had deferred purchases from January and February. The session is expected to conclude on Friday.
A gumball machine dispensing five-euro lab grown diamonds was unveiled on 12 June as part of a two-pronged campaign, highlighting Antwerp’s history as a diamond hub – and the low value of lab growns. Lab growns account for just 0.6 per cent of the diamonds traded in Antwerp, which has been a global hub for almost 580 years.
The cheeky stunt, taking place today and tomorrow at the city’s Stadsfeestzaal shopping mall, is part of the new We Protect a Legacy initiative by the Antwerp World Diamond Centre (AWDC).
The campaign highlights the core differences between natural and lab growns, which remain unclear to many consumers, leaving room for confusion — and in some cases, deliberate misinformation. the market price of synthetic diamonds has collapsed in recent months, losing up to 95 per cent of their value over the past seven years, while natural diamonds are becoming increasingly scarce
The Antwerp World Diamond Centre (AWDC) has launched a bold new campaign titled “We Protect A Legacy”, aimed at reinforcing Antwerp’s historic role as the global hub for natural diamond trade and raising public awareness about the crucial differences between natural diamonds and lab-grown diamonds (LGDs).
Campaign Launch and Symbolism
The campaign was unveiled at the iconic Stadsfeestzaal in Antwerp, where a striking and symbolic installation drew public attention: a gumball machine dispensing lab-grown diamonds for just €5. This creative activation highlighted the significant devaluation of LGDs over recent years. Industry reports indicate that lab-grown diamond prices have declined by up to 95% over the past seven years, underscoring growing concerns around long-term value and resale potential.
Strategic Objectives
- Consumer Education: The campaign seeks to clarify market distinctions between natural and synthetic diamonds, addressing increasing consumer confusion amid the growing presence of LGDs in the jewellery sector.
- Market Positioning: By spotlighting the volatility of LGD pricing, the initiative reinforces natural diamonds as the enduring choice for long-term value, heritage, and emotional significance.
- Trade Integrity: With LGDs comprising only 0.6% of Antwerp’s total diamond trade value, the AWDC reaffirms its commitment to transparency, authenticity, and protecting consumers from misleading marketing practices.
Angola is making significant strides in expanding its footprint in the global diamond industry, announcing key partnerships and future plans during the World Federation of Diamond Bourses (WFDB) conference held in New York.
A delegation from the Angolan Ministry of Mineral Resources, Petroleum and Gas (Mirempet) engaged in high-level discussions with several major players in the diamond sector. Among the announcements, Angola expressed its intention to join the National Diamond Council (NDC), the Angola Diamond Exchange, and the WFDB, as revealed by the ministry on its official Facebook page.
A notable meeting took place with Tiffany & Co., where the two parties explored a potential partnership that could see the renowned jewelry brand sourcing diamonds directly from Angola.
In another significant development, Mirempet signed a memorandum of understanding with the Gemological Institute of America (GIA). This agreement outlines future collaboration in gemological training, diamond grading, and the development of services aimed at ensuring transparency in Angola’s diamond trade.
Minister of Mineral Resources, Petroleum and Gas, Diamantino Azevedo, also met with Rapaport Group Chairman Martin Rapaport to explore opportunities for cooperation focused on ethical practices, enhanced market positioning, and global promotion of Angolan diamonds.
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