De Beers says its push to tackle the glut in the diamond market is now starting to work

by | Dec 20, 2023 | Stock Market

De Beers on Wednesday said it expects to sell two-thirds fewer diamonds in the final sales cycles of 2023 than in the same period last year, as company CEO Al Cook said the gemstone seller’s push to limit supply is now showing signs it’s working to reduce the market glut.  The company, which was founded by British mining magnate Cecil Rhodes in 1888, has intentionally restricted sales of rough diamonds to its wholesale customers, called Sightholders, in its bid to combat oversupply caused by a market slump. 

In the final five-week sales cycle of 2023, this strategy is set to see De Beers sell just $130 million worth of rough diamonds to its Sightholders, sums equivalent to less than a third the $417 million it reaped selling gemstones in the same period in 2022.  Shares in Anglo American
AAL,
-0.26%,
which took control of De Beers in 2011, fell 1% on Tuesday having lost 40% of their value over the previous 12 months.  De Beers CEO Cook, who joined the diamond seller in February from Norway’s state-owned oil company Equinor, has said the company’s push to rebalance the market now seems to be working.  “As the end-of-year holiday season progresses, we are seeing signs that the diamond industry is regaining its balance between wholesa …

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[mwai_chat context=”Let’s have a discussion about this article:nnDe Beers on Wednesday said it expects to sell two-thirds fewer diamonds in the final sales cycles of 2023 than in the same period last year, as company CEO Al Cook said the gemstone seller’s push to limit supply is now showing signs it’s working to reduce the market glut.  The company, which was founded by British mining magnate Cecil Rhodes in 1888, has intentionally restricted sales of rough diamonds to its wholesale customers, called Sightholders, in its bid to combat oversupply caused by a market slump. 

In the final five-week sales cycle of 2023, this strategy is set to see De Beers sell just $130 million worth of rough diamonds to its Sightholders, sums equivalent to less than a third the $417 million it reaped selling gemstones in the same period in 2022.  Shares in Anglo American
AAL,
-0.26%,
which took control of De Beers in 2011, fell 1% on Tuesday having lost 40% of their value over the previous 12 months.  De Beers CEO Cook, who joined the diamond seller in February from Norway’s state-owned oil company Equinor, has said the company’s push to rebalance the market now seems to be working.  “As the end-of-year holiday season progresses, we are seeing signs that the diamond industry is regaining its balance between wholesa …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]

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