De Beers to Sell Rough Diamonds at Auctions Using Futures
De Beers to Sell Rough Diamonds at Auctions Using Futures
De Beers is to begin providing customers of its rough diamond auctions with an opportunity to determine the volume of goods they wish to purchase, over a given period, through the introduction of forward contract sales.
Approximately 10 percent of De Beers’ rough diamonds are sold through its auction platform. De Beers will continue to hold spot auction events that provide customers with additional flexibility to purchase the type and quantity of the goods they need. The introduction of forward contract sales will enable customers to engage in forward planning, and help them meet their business requirements.
In addition, as part De Beers’ drive to focus on the needs of existing customers while building a long-term offering to emerging market customers in India and the Far East, De Beers will relocate the purchasing, production and sales base for its auctions to Singapore. The move will take effect from November 2013.
De Beers will also continue to operate its existing network of auction viewing offices in Antwerp, Israel, Dubai and Hong Kong, through which customers can view diamonds being auctioned and engage with their account managers.
De Beers Group CEO Philippe Mellier commented, “Offering forward contract sales through our auction platform, and moving the base of our auction sales to Singapore, will further enhance our compelling proposition to a diversified global customer base, support our position as the leading distributor of rough diamonds via online auctions, and deepen our insight into rough diamond demand.”
De Beers’ auction product range is distinct from the boxes sold to Sightholders, and will continue to evolve to meet the different needs of auction customers. Specials and Exceptional stones are included in De Beers’ auction sales and, through differentiated marketing, are auctioned at dedicated events in recognition of their unique value.
Further details of how customers can participate in forward contracts will be communicated later in the year.
