De Beers is "Cutting Prices in Secret Deals"
May 15, 25
(IDEX Online) - De Beers has reportedly been discounting rough prices - by as much as 20 per cent - to a select group of sightholders.
It has offered increased flexibility in times of trouble, and is said to have cut prices to all sightholders at recent sights but has rarely, if ever offered discounts just to a chosen elite.
The current "secret deals" - widely reported, but unconfirmed by De Beers - risk alienating those sightholders who have not been privileged to receive discounts.
De Beers is trying to shift a stockpile estimated earlier this year at $2 billion - the biggest since the 2008 financial meltdown - as global demand remains weak.
In addition, the company reported a $288m loss last year, is currently facing a sell-off by owners Anglo American, and is under pressure to increase sales.
According to a Bloomberg news report, some sightholders were given discounts of 10 per cent to 20 per cent at the latest sight in Gaborone, which ended on 10 May.
De Beers has long been known for its rigid, non-negotiable pricing and tightly controlled rough diamond sales.
Reports that it has been quietly selling rough diamonds at a significant discount to a select group of customers will surprise many in the industry.
De Beers declined to comment.
Pic courtesy De Beers.