De Beers raises rough diamond prices – again

De Beers has increased rough diamond prices at its first sale of the year in Gaborone, Botswana, according to media reports.
Bloomberg reports, citing unnamed sources privy to the goings-on, that De Beers hiked the price of larger stones by about 5%, while some smaller rough stones registered prices increases of about 20%.
Rapaport on the other hand reports that the price increases for larger stones varied between 5% and 12%, while that of smaller stones rose by about 15%.
De Beers raised prices of rough diamonds by about 23% last year as it recovered from the first year of the COVID-19 pandemic, which rattled the industry.
Although the previous price increases were on larger stones, the focus is now on smaller, cheaper stones.
“Smaller diamonds, used in cheaper jewellery sold in places like Walmart Inc., struggled for years amid over-supply. However, they rallied strongly toward the end of 2021 as supply tightened and higher quality goods went up in the price,” writes Bloomberg.
“That led to a frenzy of buying in the secondary market, where accredited De Beers and Alrosa buyers sell to other gem manufacturers. That spurred De Beers to respond by raising its own prices.”

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished