Editors

De Beers Has Changed This Rule Regarding Rough Diamonds

EditorsJan 23, 2019

De Beers Has Changed This Rule Regarding Rough Diamonds

The company is implementing a policy shift that will allow sightholders to refer to its rough stones as “DTC diamonds.”

2019_De_Beers_rough_NEW_1.jpg
De Beers Group used to limit the verbiage auction customers and sightholders could use to refer to its rough diamonds but recently announced it is relaxing its rules.

In the first week of the new year, Diamonds.net published a story on an issue that deserves at least some attention from the trade.

The online news portal for the Rapaport Group reported that De Beers Group has relaxed its rules on buyers identifying its goods as “De Beers” diamonds further down the supply pipeline, bringing back an old moniker for this new practice.

After being pushed by customers and sightholders to align with supply and demand—that is, the growing demand for source information and the fact that they can already point to their supply of Russian diamonds and say, “these are from Alrosa”—De Beers is now going to allow customers and sightholders to identify diamonds purchased from De Beers as “DTC diamonds,” David Prager, the company’s executive vice president of corporate affairs, confirmed in an interview Friday.

As I’m sure many are aware, the DTC, or Diamond Trading Co., was the name formerly used for De Beers’ sales and marketing arm. The DTC was established in 1934 but the name was retired, so to speak, a few years ago when De Beers Group began renaming everything “De Beers.” The DTC became De Beers Global Sightholder Sales, in the same fashion that Diamdel became De Beers Auction Sales.

The new rule will take effect in either the second sight of the year in February or the third sight in March and will be accompanied by a new website (DTC.com) that will contain information and statistics about De Beers’ mines.

What this means for jewelers at the other end of the supply chain: “When this goes live, a retailer will be able to say, ‘These diamonds come from DTC, they come from Canada, Botswana, South Africa or Namibia,’” Prager said.

They also are free to then explain to customers that the DTC is part of De Beers.

What sightholders and jewelers won’t be able to do, however, is use the name “De Beers” in any marketing collateral.

The company is reserving the use of its legacy name and for good reason.

First, to allow the trade and retailers to market “De Beers diamonds” unchecked through retail outlets would mean the company would have no control over distribution and, as Prager noted, “I think any brand in the world would tell you that’s not a good idea.” (More on De Beers’ expansion from a diamond mining company to a full-fledged brand is below.)

As De Beers’ David Johnson explained to me last summer when he was breaking down the company’s feud with Martin Rapaport over this very same topic, once De Beers sells a rough diamond, it doesn’t know who’s owned it, traded it, if its been fracture-filled, treated, etc. The company does not want the De Beers name on them.

Secondly, De Beers just regained the right to use the name “De Beers” in retail for diamond jewelry, and the company wants it all to itself.

From 2001 to 2017, the name “De Beers” could only be used in connection to the retail sale of diamond jewelry by what was then known as De Beers Diamond Jewellers, the chain of jewelry stores operated in a joint venture between De Beers and LVMH.

But last spring, De Beers Group bought LVMH out of the deal, giving it the ability to use “De Beers” in retail for diamond jewelry freely again.

That’s why jewelers who carry Forevermark might have noticed the De Beers name appearing on the brand’s commercials and marketing materials for the first time.

De Beers also will be using the name in China, a major market for diamond jewelry, Prager said, and made the look of the overall De Beers Group brand mirror that of what is now known as De Beers Jewellers. (This is evident in the fonts on the De Beers Group website.)


To be relevant to consumers today, a brand needs to stand for something, and De Beers is promoting protecting the environment among its causes. Pictured here is a baby rhino trailing its mother on the De Beers-operated Orapa Game Park in Botswana. (Photo © Johan Steyn)


So, now, with the De Beers name back in all uses, will the company be doing additional rebranding this year, expanding the name to encompass everything De Beers Group now owns?

Will, for example, the company’s grading lab, the International Institute of Diamond Grading & Research, get a new name that includes “De Beers” and is, perhaps, a bit more palatable?

Prager declined to comment, though he did note the company overall is investing more in the De Beers Group as a brand; specifically, a brand that will be pushing protecting the natural world—see its work with elephants and rhinos—and supporting women and girls as its causes moving forward.

In talking to Prager on Friday, I was reminded of an interesting analysis I heard from Rapaport Senior Analyst and News Editor Avi Krawitz on an industry podcast earlier this year.

The Israel-based industry journalist expounded upon an article published in the August edition of the Rapaport Research Group that looked at the evolution of De Beers over the past decade from a diamond mining company singularly focused on producing as much rough as possible to a brand-centric diamond company with its hands in a little bit of everything—mining, retail, diamond grading and testing, resale of diamonds and consumer-facing brands, namely Forevermark and lab-grown line Lightbox.

I neglected to include the article on my end-of-year reading list for 2018, but it is well worth your time.

If you prefer listening to reading, you can hear Krawitz explain, in his lovely accent, the changes at De Beers over the past decade in the aforementioned episode of the “Inside the Jewelry Trade” podcast (the portion covering changes at De Beers starts around 18:30).
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Jacquie Aiche Lizzie Bracelet
CollectionsNov 05, 2024
Jacquie Aiche is Hosting an Online Treasure Hunt

One lucky winner will receive a “Lizzie” diamond bracelet.

Samantha Larson
IndependentsNov 05, 2024
Long's Jewelers Names New Director of Buying

Samantha Larson has joined the Boston-based retailer.

Emerging Jewelers Accelerator Program logo
Events & AwardsNov 05, 2024
JA, BIJC Now Accepting EJAP Applications for 2025

The Emerging Jewelers Accelerator Program will guide retail jewelry entrepreneurs through an eight-month educational curriculum.

Jewelers Mutual Group Cybersecurity
Brought to you by
Navigating Cybersecurity: Essential Guidance for Jewelers

From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.

Tiffany & Co. x CFDA Jewelry Designer Award
Events & AwardsNov 05, 2024
Tiffany & Co., CDFA Announce Design Award Finalists

Ten chosen designers will receive mentorship and participate in a design contest for the Tiffany & Co. x CFDA Jewelry Designer Award.

Weekly QuizOct 31, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Dana J. Lorberg
MajorsNov 04, 2024
Jewelers Mutual Appoints Mastercard Exec to Its Board

Dana J. Lorberg brings 35 years of experience in finance, technology, and strategy to the role.

FBI robbery surveillance photo
CrimeNov 04, 2024
FBI Offering $15K Reward for Info on Halloween Mask-Wearing Robbers

The suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.

Article-Top-Image.jpg
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYC

This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.

Models wearing Black Sand Pebble ring and Surf bracelet
CollectionsNov 04, 2024
John Hardy’s New Jewels Turn the Black Sands of Bali into Diamonds

The new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.

Jaeger-LeCoultre Reverso Tribute watch
IndependentsNov 04, 2024
Eiseman Jewels is Celebrating Watches All Month-Long

The Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.

Artist Reena Ahluwalia “Pristine” painting
SourcingNov 01, 2024
Reena Ahluwalia Donates Diamond Painting to Benefit CJA

The artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.

Gunderson’s Jewelers in Omaha, Nebraska
IndependentsNov 01, 2024
Gunderson’s Jewelers Opens New Location in Nebraska

The new store features a custom design studio and a bridal salon.

Sydney Evan x Wicked “Spell Book” coin charm
CollectionsNov 01, 2024
Piece of the Week: Sydney Evan Gets ‘Wicked’

Designer Rosanne Karmes has created a collection to coincide with the release of the movie musical, which is expected to be a blockbuster.

Charles & Colvard moissanite ring
FinancialsOct 31, 2024
Charles & Colvard Faces Possible Nasdaq Delisting

The retailer said it will file the necessary paperwork to regain compliance as soon as it is able.

National Jeweler columnist Peter Smith
ColumnistsOct 31, 2024
Peter Smith: Nervous Flyers and Emotional Selling

Whether you’re calming the jittery gentleman in seat 13B or selling a diamond ring to a hesitant customer, an empathetic approach is best.

Annie E. Doresca, Grant Mobley, Alexis Padis, Terry Chandler
Events & AwardsOct 31, 2024
WJA Will Celebrate 4 Award Winners at ‘Future of Forty’ Gala

The gala includes a red carpet, music from DJ Renata, an awards program, and “mystery boxes.”

Instore show 2025
Events & AwardsOct 31, 2024
The Instore Show Returns To Chicago Area

The trade show, in its third year, will take place in late September at the Donald E. Stephens Convention Center in Rosemont, Illinois.

Constance Polamalu
Lab-GrownOct 31, 2024
Q&A: Constance Polamalu on Selling Natural and Lab-Grown Diamonds

The jeweler shared her change of heart on lab-grown diamonds and why she keeps them separate from natural diamonds in her business ventures.

Gem Awards New York City
Events & AwardsOct 30, 2024
These Designers, Journalists, and Retailers Are Up for a Gem Award

The 2025 Gem Awards are scheduled to take place March 14 at Cipriani 42nd Street in New York City.

Peggy Grosz
MajorsOct 30, 2024
Peggy Grosz Leaves Assael After Company Is Sold

Grosz had served as Assael’s senior vice president and creative director since 2017.

CD Peacock Love and Celebration Rings
CollectionsOct 30, 2024
CD Peacock Honors Its Hometown of Chicago in First Bridal Collection

“Love and Celebration” is the jeweler’s first in-house collection featuring engagement rings, wedding bands, and celebration rings.

Hands pushing a shopping cart
SurveysOct 30, 2024
Consumer Confidence Rebounds in October

A more positive view of the labor market contributed to the strongest monthly gain since March 2021.

Mejuri store
Events & AwardsOct 30, 2024
Mejuri to Award $50K in Scholarships to Jewelry Design Students

The funds will be distributed to schools in the U.S., Canada, and the U.K.

Jewelers’ Security Alliance President Jennifer Mulvihill
MajorsOct 29, 2024
Cybersecurity Expert Selected as President of Jewelers’ Security Alliance

Jennifer Mulvihill, the first woman to lead JSA in the organization’s 141-year history, takes over for the retiring John Kennedy.

20241030_NYCJW.jpg
Events & AwardsOct 29, 2024
The Can’t-Miss Events of 2024 New York City Jewelry Week

This year’s festivities include more than 100 experiences, such as designer showcases, panel discussions, and even a treasure hunt.

Edgar Mitchell’s Rolex GMT-Master Pepsi
AuctionsOct 29, 2024
Rolex Worn on Apollo 14 Mission Sells for More Than $2M

The GMT-Master “Pepsi” that belonged to astronaut Edgar Mitchell is one of two Apollo-flown Rolex watches ever sold at auction.

Pandora ambassadors Chloe Bailey, Halle Bailey, and Pamela Anderson
MajorsOct 29, 2024
Pandora’s Holiday Campaign, New Jewelry Celebrate Light and Love

The ads star brand ambassadors Chloe and Halle Bailey and Pamela Anderson.

×

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