Lower Prices at De Beers, Say Sightholders

De Beers reduced prices of goods at its latest sight – the first to be held in Botswana following the transfer of most Diamond Trading Company operations from London.

The move is seen as a way to pacify sightholders who have complained that rough prices are too high to make them profitable to manufacture.

Sightholders said that prices of the majority of types of rough diamonds were cut by 3-5 percent, and the average price reduction across all types of stones was 2 percent.

Given the range of problems affecting diamond manufacturers, however, sightholders, had hoped that the price reductions would go further.

Indian diamond polishing manufacturers, in particular, say they are unable to manufacture profitably under current circumstances due to high rough prices, the fall in the value of the rupee against the US dollar, and a lack of liquidity and credit facilities.

Many Indian manufacturers have been cutting back output in recent months due to financial difficulties, said Gems and Jewellery Export Promotion Council (GJEPC) Chairman Vipul Shah.