Covid-19

De Beers diamond sales plunge as Covid-19 reduces global demand

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De Beers: Why Millennials buy diamonds Description video: CNN’s Nina Dos Santos speaks with De Beers Group CEO, Bruce Cleaver, about the diamond purchasing difference between millennials and their parents’ generation, according to its 2016 diamond insight report. De Beers […]

De Beers: Why Millennials buy diamonds

Description video:
CNN’s Nina Dos Santos speaks with De Beers Group CEO, Bruce Cleaver, about the diamond purchasing difference between millennials and their parents’ generation, according to its 2016 diamond insight report.

De Beers diamond sales plunge as Covid-19 reduces global demand

The world’s largest diamond producer sold just $ 2.7 billion in gemstones this year, a third less than in 2019.

De Beers’ sales fell to their lowest level in nearly a decade after the pandemic weakened global demand for gemstones and jewelry.

The world’s largest diamond producer said it tentatively sold $ 2.7bn (£ 1.9bn) diamonds during 2020, a third less than in 2019, when sales exceeded $ 4bn.

Global demand for diamonds and jewelry fell in spring, leading to lower sales and prices.

At the same time, diamond production at some of the company’s sites in southern Africa is down 27% as coronavirus restrictions severely hamper operations.

De Beers was also forced to cancel one of its regular trade events in Botswana after travel restrictions prevented shoppers from visiting it..

De Beers’ profit, which has been part of a huge Anglo-American mining group since 2012, fell to just $ 2 million in the first half of the year, down from $ 518 million in the same period in 2019..

De Beers diamond sales plunge as Covid-19 reduces global demand

The company warned in July that it may have to cut jobs as it would like to rethink its direction..

However, sales improved in the last quarter and De Beers said it had previously sold roughly $ 440 million in diamonds. in December, during the last sales cycle this year, slightly higher than the same period last year.

CEO of the company Bruce Cleaver (Bruce Cleaver) said Christmas demand for diamond jewelry in markets such as China and the United States is increasing overall demand for polished diamonds, which in turn supports the company’s rough diamond sales.

However, Cleaver warned that the ongoing pandemic still poses a risk to the diamond industry’s recovery through the end of this year and into 2021..