Editors

Dissecting De Beers' 'distribution update'

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.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Bonhams New Bond Street London flagship
AuctionsOct 24, 2025
Bonhams Under New Ownership, Top Executives Replaced

London-based investment firm Pemberton Asset Management acquired the auction house for an undisclosed amount.

De Beers Diamond View Zoom machine with monitor
GradingOct 24, 2025
DMIA to Hold Diamond Testing Instrument Demo

The workshop will give attendees the chance to try out and ask questions about three different diamond verification instruments.

Two brooches stolen in the October 2025 heist at the Louvre Museum in Paris
CrimeOct 24, 2025
Video Emerges of Louvre Jewelry Robbers Fleeing the Scene

The footage shows two of the jewelry heist suspects descending from the second floor of the museum and then escaping via scooter.

BTYB10.25_Header.jpg
Brought to you by
Are Earrings an Overlooked Category? What Retailers Need to Know Now

As the holiday season quickly approaches, consider stocking one category that sometimes gets overlooked: earrings.

Wyld Box Jewelry Ray of Light Large Drop Earrings
CollectionsOct 24, 2025
Piece of the Week: Wyld Box Jewelry’s ‘Ray of Light’ Earrings

Founder and designer Rosanna Fiedler looked to a vintage Cartier clutch when designing the sunlight-inspired drop earrings.

Weekly QuizOct 16, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tiffany & Co. Bird on a Rock pendant
FinancialsOct 23, 2025
Jewelry Sales Resilient Despite Struggles at LVMH, Kering

The luxury conglomerates faced a challenging Q3 amid geopolitical and economic tensions.

Cullinan Diamond Mine plant
SourcingOct 23, 2025
Petra Diamonds Turns to Shareholders to Raise Capital

The struggling diamond mining company, which owns the historic Cullinan mine, has launched a rights issue to raise about $25 million.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (2) (1).jpg
Brought to you by
Protect Your Customers and Your Business

You deserve to know what you are selling–to protect your customers as well as your business and your reputation.

Million Dollar Hip Hop Watches by Leon Schäfers, Jeanette Lang, Tobias Kargoll
WatchesOct 23, 2025
‘Million Dollar Hip Hop Watches’ Recounts Watch History

The book details the journey of watches as symbols of hard-earned success in hip-hop for artists like 2Pac, Jay-Z, and more.

Alexis Vourvoulis
AuctionsOct 23, 2025
Freeman’s | Hindman Names New VP, Senior Specialist for Jewelry & Watches

Alexis Vourvoulis, who most recently worked at Tiffany & Co., brings more than two decades of jewelry experience to her new role.

Taylor Swift engagement ring Greenwich St
TrendsOct 22, 2025
The Taylor Swift Effect: Antique Diamonds Edition

The superstar’s August engagement put the stamp of approval on an already hot engagement ring trend.

Rahaminov Diamonds Emerald-Cut Diamond Bracelet
TrendsOct 22, 2025
Don’t Forget These Diamond Jewelry Trends When Stocking for the Holidays

Retailers should offer classic styles with a twist that are a perfect fit for layered looks, experts say.

Fancy vivid purplish pink diamond
AuctionsOct 22, 2025
Pink Diamond, Vanderbilt Jewels to Headline Phillips’ Geneva Auction

The nearly 7-carat fancy vivid purplish pink diamond could sell for around $9 million.

“Storied Diamond Desert Sands of Eternity” engagement ring and wedding band
SourcingOct 22, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey

The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.

Tiffany & Co. Bird on a Rock by Tiffany High Jewelry Lariat
CollectionsOct 22, 2025
Tiffany & Co.’s ‘Bird on a Rock’ Finds New Perch

Chief Artistic Officer Nathalie Verdeille has reimagined the iconic design in both figurative and abstract creations.

Jewelers for Children Halloween contest
Events & AwardsOct 22, 2025
JFC Kicks Off Halloween Costume Challenge

Five dollars buys one vote toward an industry professional you want to see dressed up as a hero, or a villain, this Halloween.

Hillsborough show
Events & AwardsOct 22, 2025
Hillsborough Antique Show Gets New Owner

Recently acquired by KIL Promotions, the November edition of the public show in San Mateo, California, will be held Nov. 7-9.

Bicolor pink and colorless diamond
GradingOct 21, 2025
GIA Examines Rare Bicolor Pink Diamond

The stone’s two zones, one pink and one colorless, may have formed at two different times, the lab said.

Pomellato Rodeo Drive Flagship Exterior
MajorsOct 21, 2025
Pomellato Brings ‘Global Attitude’ to Rodeo Drive Flagship

Hollywood glamour meets Milanese sophistication in the design of Pomellato’s new store in Beverly Hills, California.

Grown Brilliance NYC Flagship Exterior
Lab-GrownOct 21, 2025
Grown Brilliance Opens First Flagship

The New York City store showcases a chandelier with 1,500 carats of lab-grown diamonds designed by an FIT student.

Douriean Fletcher Messenger Collection
Events & AwardsOct 21, 2025
‘Douriean Fletcher: Jewelry of the Afrofuture’ Opens at MAD

The Museum of Arts and Design's new exhibition features 75 pieces by the designer, best known for her work in the “Black Panther” films.

Sothebys the glowing rose pink diamond
AuctionsOct 20, 2025
Sotheby's To Auction 10-Carat Vivid Pink Diamond

Making its auction debut, "The Glowing Rose" is expected to fetch $20 million at the November jewelry sale in Geneva.

2025_Gemfields logo.jpg
SourcingOct 20, 2025
2 Mozambique Police Officers Killed at Gemfields’ Ruby Mine

They were attacked on Oct. 15, as approximately 40 miners without licenses marched on the mine’s gate.

Empress Eugénie’s pearl and diamond tiara
CrimeOct 20, 2025
See the ‘Priceless’ Jewels Stolen During Daytime Heist at the Louvre

It took the masked thieves less than 10 minutes to steal eight irreplaceable jewels from two display cases in the museum’s Apollo Gallery.

Lauren Gayda
SourcingOct 20, 2025
Pristine Gems Names New Director of European Sales

Gemologist Lauren Gayda has previously worked at The Clear Cut, Taylor & Hart, and Effy Jewelry.

Charles London, Mayer and Fran Udell, Mark and Candy Udell
IndependentsOct 17, 2025
From the Jazz Age to the Information Age: London Jewelers Turns 100

In 2026, the jewelry retailer will celebrate a milestone only a small percentage of family-owned businesses survive to see.

The Edit – A Gallery of Italian Jewelry Masterpieces Graphic
Events & AwardsOct 17, 2025
An Edit of Italian Jewels Is Coming to NYC

The new showcase dedicated to Italian jewelry design is set for Oct. 29-30.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy