CollectionsApr 06, 2026
Fope’s New Jewelry Debuts Are Golden“The Golden Now” campaign celebrates the here and now with the brand’s signature styles and a selection of its new pieces.
EditorsAug 24, 2010
Dissecting De Beers' 'distribution update'
After a sleepy couple of weeks, news wise, De Beers woke up the diamond world on Monday when it announced a series of changes, a "distribution update" if you will, to the way it sells its rough diamonds. See story...
After a sleepy couple of weeks, news wise, De Beers woke up the diamond world on Monday when it announced a series of changes, a "distribution update" if you will, to the way it sells its rough diamonds. See story here.
Probably the biggest change: De Beers announced that Diamond Trading Co. (DTC) sightholders--those vaunted companies that receive rough directly from De Beers at its 10 sights (sales of rough diamonds) held throughout the year--will be able to buy rough at Diamdel auctions beginning in October (more on this below).In addition, De Beers also announced that it will give non-sightholder companies the chance to apply for the sightholder status in the midst of the next contract period and that it is taking steps to make the sightholder application process less cumbersome. I'm sure the latter, especially, is a welcome change, as I have heard numerous complaints about the heavy volume of paperwork involved in applying.
After dissecting the alphabet soup-like release (SoC, ITO, DTC, CPQ, whew...), I sent a few questions to De Beers' spokeswoman Lynette Gould in London, who kindly took time to answer via e-mail.
Q. What percentage of De Beers' production goes to Diamdel? How much of Diamdel's allocation is currently sold at auction?
A. De Beers typically sells up to 10 percent of its annual production to Diamdel, which is basically De Beers' rough diamond sales and distribution arm for non-sightholders, companies that are also referred to as the "secondary market." Launched in the beginning of 2008, Diamdel is based in the diamond-trading center of Antwerp, Belgium, and conducts all of its auctions online.
The amount Diamdel sells at auction as a percentage of its total sales varies, but so far has ranged between 40 and 70 percent.
Q. What percentage will Diamdel's auction sales graduate to as the company "continues to transfer more of its allocation into the auction format?"
A. (Note from blog author: Very interesting response here.) If this pilot program is successful, Diamdel will move to an auction-only model.
Q. How many existing Diamdel customers are there currently, and how are they chosen?
A. Diamdel has more than 500 customers registered. They must successfully complete a registration process to be eligible for participation at auctions.
Q. There have been reports that Diamdel has, in the past, not been able to sell all of its goods, and that it has even canceled auctions due to lack
of interest among buyers or the inability to achieve the minimum sale price for goods. Is that true?
A. Diamdel has never cancelled an auction due to a lack of interest or inability to sell. On occasion, lots fall short of reserves, although, to date, this has happened on a very small percentage of lots and was most notable during the downturn.
Q. What was the impetus behind letting sightholders buy at auction?
A. Diamdel has proven expertise at auctioning and we believe the time is right for this expertise to be tested on a wider group of applicants with an expanded volume and range of goods hence the pilot.
Q. How does De Beers respond to concern that allowing sightholders into Diamdel auctions will make securing rough even more difficult for non-sightholders, particularly for in-demand goods?
A. Diamdel auctions have provided more customers with more opportunities to buy the rough they require to sustain their operations than the previous placed sales model created. The pilot will build upon this and provide greater volumes of a broader range of rough for purchase at auctions on a more consistent basis. Subject to the outcome of the pilot and availability, this proposed model will offer non-sightholders who consistently demonstrate strong demand for categories of rough at auction the potential to ultimately qualify for a sight.
The auctions themselves won't favor one type of business model over another.
(Note from blog author: Arguably, though, I have to say that auctions, by their very nature, favor bigger companies and/or people with more money, i.e., the sightholders.)
Q. What has been sightholder feedback on De Beers' plans to allow non-sightholders/Diamdel customers to compete for sights in the middle of the next contract period?
A. The majority of feedback we have received has been very positive. Sightholders see opportunities in these enhancements.
Q. Can you elaborate a bit on the Contract Proposal Questionnaire (CPQ) portion of the changes? How did it work before? And what is the purpose of this change?
A. The DTC will be streamlining the Supplier of Choice application process for the 2011-2015 contract period to make it quicker, simpler and more efficient. This will include submitting just one CPQ per applicant to cover multiple categories of goods. There will also be fewer questions requiring written answers in the new CPQ.
A. Diamdel has never cancelled an auction due to a lack of interest or inability to sell. On occasion, lots fall short of reserves, although, to date, this has happened on a very small percentage of lots and was most notable during the downturn.
Q. What was the impetus behind letting sightholders buy at auction?
A. Diamdel has proven expertise at auctioning and we believe the time is right for this expertise to be tested on a wider group of applicants with an expanded volume and range of goods hence the pilot.
Q. How does De Beers respond to concern that allowing sightholders into Diamdel auctions will make securing rough even more difficult for non-sightholders, particularly for in-demand goods?
A. Diamdel auctions have provided more customers with more opportunities to buy the rough they require to sustain their operations than the previous placed sales model created. The pilot will build upon this and provide greater volumes of a broader range of rough for purchase at auctions on a more consistent basis. Subject to the outcome of the pilot and availability, this proposed model will offer non-sightholders who consistently demonstrate strong demand for categories of rough at auction the potential to ultimately qualify for a sight.
The auctions themselves won't favor one type of business model over another.
(Note from blog author: Arguably, though, I have to say that auctions, by their very nature, favor bigger companies and/or people with more money, i.e., the sightholders.)
Q. What has been sightholder feedback on De Beers' plans to allow non-sightholders/Diamdel customers to compete for sights in the middle of the next contract period?
A. The majority of feedback we have received has been very positive. Sightholders see opportunities in these enhancements.
Q. Can you elaborate a bit on the Contract Proposal Questionnaire (CPQ) portion of the changes? How did it work before? And what is the purpose of this change?
A. The DTC will be streamlining the Supplier of Choice application process for the 2011-2015 contract period to make it quicker, simpler and more efficient. This will include submitting just one CPQ per applicant to cover multiple categories of goods. There will also be fewer questions requiring written answers in the new CPQ.
More on Editors
The Latest
MajorsApr 06, 2026
Kecia Caffie, Corinne Bentzen No Longer With Signet JewelersSignet confirmed that Caffie, president of Zales and Banter, and Bentzen, who headed Blue Nile, have left the company.
CollectionsApr 06, 2026
Historian Tanzy Ward Pens Book on Black Victorians’ JewelryThe antique jewelry dealer talks about the importance of including Black Americans in jewelry history and preserving their stories.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
SourcingApr 06, 2026
Gemfields Reports $51M Loss in 2025Both its mines faced challenges last year, from operational issues to disruptions in the market.
Weekly QuizApr 02, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsApr 03, 2026
Taylor Swift’s ‘Elizabeth Taylor’ Video Puts Jewelry Front and CenterIconic pieces, like the Mike Todd Diamond Tiara, appear in the superstar’s new music video for her song inspired by the actress.
MajorsApr 03, 2026
Saks Global Says It Will Emerge From Bankruptcy This SummerThe luxury retailer, which went Chapter 11 in January, announced Thursday that it has secured $500 million in exit financing.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
Events & AwardsApr 03, 2026
JCK Luxury, NouvelleBox Partner on New Designer BallroomThe NouvelleBox ballroom will feature independent jewelry designers, including Lene Vibe, Wyld Box Jewelry, and Kiaia Limited.
CollectionsApr 03, 2026
Buddha Mama Brings Its ‘Moon’ Locket To DallasThe one-of-a-kind locket, our Piece of the Week, opens to reveal three hidden images to keep close to your heart.
MajorsApr 02, 2026
Pandora Opens New Canadian Distribution Center Amid Tariff ConcernsThe new facility was also designed to better serve its growing customer base in Canada.
TrendsApr 02, 2026
Michelle Yeoh Fronts New Mikimoto Campaign The campaign is a tribute to the year 1893, when Kokichi Mikimoto created the world’s first cultured pearl.
GradingApr 02, 2026
GIA Debuts New Campus in TaiwanIt is the only GIA school to offer the GIA Graduate Gemologist program in Chinese.
MajorsApr 02, 2026
DCA Launches ‘Second Spark’ Workforce InitiativeThe initiative connects veterans and parents returning to the workforce with careers in jewelry retail.
MajorsApr 02, 2026
Hoover & Strong Names New National Sales RepresentativeThe wholesale manufacturer and precious metals refiner has appointed Michael Angelo as its new national sales representative.
MajorsApr 01, 2026
Foundrae Sues Pandora for Allegedly Copying Its Medallion DesignsFoundrae also accused the jewelry giant of copying its mood board style of marketing.
AuctionsApr 01, 2026
John Jacob Astor IV’s Titanic Pocket Watch Heads to AuctionA Patek Philippe for Tiffany & Co. timepiece owned by the American businessman who died on the Titanic will be offered at Freeman's Chicago.
SurveysApr 01, 2026
Consumers’ Outlook Improves Again in MarchThe Conference Board’s Consumer Confidence Index edged up, with optimism about the present outweighing worries about the future.
IndependentsApr 01, 2026
Zachary’s Jewelers’ Constance Polamalu to Release Children’s BookThe retailer’s Zach Bear gift comes to life in “Zach Bear and the Window Necklace,” which centers on curiosity, bravery, and helping.
Events & AwardsApr 01, 2026
AGA Opens 2026 Gemological Scholarship, Research Grant ApplicationsApplications are open for the AGA Gemological Scholarship Program through May 15, and until June 2027 for the Gemological Research Grant.
ColumnistsMar 31, 2026
Q1 Clues That Reveal Where Your Jewelry Store’s Sales Are Heading These customer behavior patterns say a lot about how successful your jewelry store is going to be this year, Emmanuel Raheb writes.
CollectionsMar 31, 2026
Mejuri Adds Silver to ‘Puzzle’ CollectionMejuri’s popular collection of 18-karat yellow gold vermeil rings debuted in sterling silver alongside new “Puzzle” slider charms.
CollectionsMar 31, 2026
Buddha Mama, Ashley Longshore to Host Pop-Up in DallasThe Miami-based jewelry brand and the NYC-based artist will be in Dallas from April 9-11.
SourcingMar 31, 2026
NDC Designates April 8 as 'World Diamond Day'The initiative invites those in the industry to share stories on social media highlighting the meaning and impact of natural diamonds.
SourcingMar 31, 2026
GIA VP Jillian Wolk to Take Over at Tracr Wolk’s first day on the job as CEO of Tracr, De Beers Group’s blockchain platform, will be May 1.
TrendsMar 30, 2026
Oscar Heyman Debuts First Spring CatalogThe new catalog, which showcases 35 one-of-a-kind pieces of jewelry, is a compliment to the company’s popular holiday catalog.
SourcingMar 30, 2026
Rio Tinto Hauls Last Load from DiavikProduction has ceased at the Canadian diamond mine, which has yielded more than 150 million carats of rough diamonds in its 23-year run.
