Tell Us More

Share a bit more information with us
to finalize your Free Quote request.

You are looking for information regarding:

2 to 10+ carat
Round Diamond
United States Afghanistan Aland Islands Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia, Plurinational State of Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile China Chinese Taipei Christmas Island Cocos (Keeling) Islands Colombia Comoros Congo Congo, the Democratic Republic of the Cook Islands Costa Rica Cote d'Ivoire Croatia Cuba Curaçao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic East Timor Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands (Malvinas) Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Holy See (Vatican City State) Honduras Hong Kong Hungary Iceland India Indonesia Iran Iran, Islamic Republic of Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Korea Korea, Democratic People's Republic of Korea, Republic of Korea (South) Kuwait Kyrgyzstan Lao People's Democratic Republic Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macedonia, the former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Moldova, Republic of Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palestinian Territory, Occupied Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Poland Portugal Puerto Rico Qatar Republic of China Reunion Romania Russian Federation Rwanda Saint Barthélemy Saint Helena, Ascension and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Martin (French part) Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Sint Maarten (Dutch part) Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania, United Republic of Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United States Minor Outlying Islands Uruguay Uzbekistan Vanuatu Venezuela, Bolivarian Republic of Vietnam Virgin Islands, British Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe

Summer 2000

It’s official: After over a century of reliance on De Beers’ “single channel marketing,” the Central Selling Organization – known as the “Syndicate” – is no more.

In its place will be the Diamond Trading Company – which will strive to become the “Supplier of Choice.” De Beers says the DTC will “encourage the development of a competitive and growth-oriented 21st century industry.”

This news, carried by the financial press on July 13th,is not so new to subscribers of the Diamond Registry Bulletin. However, it is a complete turn from the mission statement in pre-Bain days where a De Beers’ brochure states:

“The Central Selling Organization, or CSO, was established by De Beers and its associates in the 1930s to create a reliable and enduring system to balance supply and demand, and prevent wild fluctuations in the market for diamonds.”

The company insisted that De Beers’ financial strength is a prerequisite to the health of the entire pipeline from miner and diamond wholesaler to consumer:

“The continuing success of the single channel marketing is dependent upon: the financial strength of De Beers CSO which enables it to hold buffer stocks of those particular sizes and qualities of diamonds not currently in demand, releasing them onto the market in an orderly flow when demand increases.”

The new De Beers under the guidance of Bain & Co. wishes to avoid the monopoly label – a designation it has never fully admitted. Former chairman Harry Oppenheimer stated the official position several years ago:

“Whether this measure of control amounts to a monopoly I would not know, but if it does, it is certainly a monopoly of a most unusual kind. There is no one concerned with diamonds, whether as producer, dealer, cutter, jeweler or customer, who does not benefit from it. It protects not only the shareholders of diamond companies, but also the miners they employ and the communities that are dependent on their operations.”

But that’s all in the past. De Beers thinks it can be the “supplier of choice” by supplying “value added” services, like marketing advice. In De Beers’ words, the company “wants to work more closely with clients so they can service their downstream customers in order to drive consumer demand.” De Beers executives now regularly note that the diamond industry spends less on promotion than other industries, and it wants sightholders to start brands and do more advertising.

De Beers is also making its customers sign on to “sightholder operating criteria,” which include “Best Practice Principles.” Sightholders that agree to the best practice principles that includes agreeing not to buy diamonds from combat zones.

Actually, the most significant news this summer is not the metamorphosis of De Beers but the exceptional strength of the diamond industry and the firmness of diamond prices, even after De Beers announced that its withdrawal of its unconditional support.

Ironically, the only price weakness following the announcement was in De Beers shares. But their drop, in mid-July, does not prove that Bain’s advice to sell off its stockpile and give up “guardianship” of the diamond industry was wrong. It has more to do with the comments by Russian officials that the Russians that they may not renew their contract with De Beers after it expires next year.

In the long run, De Beers’ “strategic review” will probably benefit those who it is intended for: its shareholders. The greater benefit, however, may go to the entire diamond industry, from the producing miners and cutters to jewelers, who will learn to walk without crutches, and not rely on the guarantee of success from a single company. Maybe the industry, including the Russians, should learn to stand on its own two feet.

Related Articles

Pink Diamond Prices outperformed other colored diamonds
Blog Archive

Pink Diamond Prices outperformed other colored diamonds

Almost $9M for 13.33 ct pink diamond
Blog Archive

Almost $9M for 13.33 ct pink diamond

What’s going on in the diamond market?
Blog Archive

What’s going on in the diamond market?

WhatsApp chat