By Antony Sguazzin
April 29 (Bloomberg) — De Beers, the world’s biggest diamond producer, cut by 15 percent the number of customers it will allow to buy gems at exclusive sales because of an anticipated drop in supplies.
The Johannesburg-based company gave 79 customers the exclusive right to buy its diamonds for the next three years, it said in an e-mailed statement today. That compares with 93 the last time it announced its list of clients two-and-a-half-years ago, said Louise Prior, a spokeswoman for the company.
De Beers is reducing the amount of diamonds it buys from Russia’s ZAO Alrosa after antitrust complaints by the European Union. It expects to buy $400 million worth of gems this year from the Russian company, $100 million less than in 2007.
“It really is a question of supply,” Prior said in an interview from London. “ We have less diamonds.”
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We expect price increases this Friday 2nd May because dealers have to compensate for the weaker US dollar after the Passover holiday and to set the mood for the annual Las Vegas JCK fair.
In addition siteholders have had to pay higher prices for their rough diamonds at the last recent siteholders sale.
These two combined factors with the forecasted shortages will determine the outcome.
Our advice to those who can afford to, is to HOLD your diamonds from 0.70 carats and wait.
The Las Vegas JCK fair may be effected by high gold and diamond prices. Attendance may be threatened by those who normally buy. Time will tell.
Hoooroooo from De Guru
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Diamond Imports
