De Beers, Alrosa CEOs Say Diamond Jewelry Demand Remains ‘Robust’
But De Beers saw rough diamond sales stall as the COVID-19 crisis in India impacted manufacturing capacity.
Preliminary results released by De Beers this week show rough diamond sales totaled $380 million during its fourth sales cycle of the year, May 3-18.
That is down from the third sales cycle of 2021 (revised total of $450 million) and the fourth sales cycle of 2019, when rough diamond sales totaled $415 million.
(The same period in 2020 is not an apt comparison because of COVID-19. With the entire world in lockdown, De Beers combined sales cycles four and five last year and sold only $56 million in rough.)
CEO Bruce Cleaver said demand for diamond jewelry remains “robust” in the United States and China.
However, the brutal second wave of COVID-19 raging in India—the world’s largest diamond manufacturing hub—has impacted manufacturing capacity and, in turn, rough diamond demand during what is typically a slower season anyway, he said.
“Our thoughts are with all those in India as the country navigates the current challenges presented by the pandemic, reminding us that the road ahead remains uncertain and that we must continue to adopt a watchful approach,” he said.
That is up from $357 million in March, including $345 million in rough and $12 million in polished.
And it is a 26 percent increase compared to diamond sales of $318.7 million in April 2019.
(April 2020 diamond sales, rough and polished, totaled only $15.6 million. Alrosa said then that it “virtually stopped selling rough and polished diamonds” due to COVID-19 lockdowns.)
Deputy CEO Evgeny Agureev also described diamond jewelry demand in key markets as “robust” and said stocks in the midstream remain “modest” while rough diamond supplies are low.
Commenting on Alrosa’s performance, he said, “Our April sales were well-supported by the successful results delivered by auctions of high-quality large rough, as well as by strong sales of polished diamonds.”
All proceeds of “Juneteenth Medallion” sales, as well as raffle tickets, benefit organizations that support BIPOC.
Millennials were once feared in the diamond industry, but now this younger generation has become today’s largest diamond buying demographic.
The company is implementing a restructuring plan after struggling amid the COVID-19 pandemic.
Gold has had its share of ups and downs over the last 5 decades. Here’s why the metal is having another big comeback.
There will also be a virtual component for those not in attendance.