De Beers’ sales soften to $450m

Preliminary receipts from the first auction this year, held in Gaborone were, however, higher than the $417 million seen from the last auction of 2022.

Outgoing CEO, Bruce Cleaver said sightholders, the exclusive list of buyers contracted for De Beers’ auctions, had adopted a cautious approach late last year in planning their 2023 purchases.

In a statement accompanying the results last Wednesday, Cleaver said the sightholders were placing more weight on purchases for later in the year. He added that while there was still some uncertainty over the global macroeconomic environment, De Beers is cautiously optimistic about the year as China continues to reopen and inflation rates in many major economies begin to decline.

The global diamond industry has a mixed outlook this year as institutions such as the World Bank warn of a slowdown in the global economy, while the continuation of Russia’s war in Ukraine raises the threat of turning ethical consumers off natural diamonds.

Russia, the world’s largest producer of diamonds by volume, is under sanctions by most Western countries. Still, its stones continue to trade in the global market after processing into jewellery in neutral centres such as India and China.