De Beers To Raise Rough Prices

May 31, 2000

De Beers To Raise Rough Prices

De Beers announced today its prices for rough are going up, mainly for smaller diamonds of lower quality. "Prices for rough diamonds are being adjusted positively as a result of the strength in the market," says De Beers spokesperson Joan Braune. Adjustments will be made at the June 5 allocation to clients. Braune says no further details are available about the June price increase.

Future price adjustments will be more made more frequently, rather than announced on the occasion of its disbursement of diamonds to the clients it selects. This change is spurred by De Beers' realization it now works in a more competitive environment and must react to changing market conditions, Braune says.

The news of the price increase comes a day after a flurry of news reports that De Beers will abandon its policy of attempting to stabilize diamond supply and demand through the Central Selling Organisation and will instead concentrate on mining and marketing. News reports also said De Beers will standardize and clarify its previously secretive and unspecified criteria for granting its clients admittance to meetings where diamonds are allocated.

- Robert Weldon, G.G.