Coronavirus Causes Oversupply of Diamonds Worth Billions

Dealers now look to get rid of stockpiles without affecting the recovery.

By
Fashion
7,818 Hypes 6 Comments

According to reports, the Coronavirus (COVID-19) pandemic has created an oversupply of diamonds. While most of the world continues to struggle to get back to normal, dealers must now figure out how they will get rid of their stockpiles worth billions without affecting the recovery.

As the diamond industry along with the rest of the world slowed to a crawl, jewelers and artisans were forced to shutter business to abide by quarantine measures. Botswana-based De Beers even had to cancel its annual March sale, holding the yearly event in May and generating just $35 million USD compared to the $416 million USD it pulled last year. Forcing it to prepare for another sale sometime next month, which will offer a sign as to what the industry will face in the coming months.

Currently, the five largest diamond producers hold supplies worth approximately $3.5 billion USD, with specialist advisory firm Gemdax, noting that stockpiles will reach heights of $4.5 billion USD by the end of the year. Plans are now put in place to restrict rough-diamond supply, but it is unclear how destocking will occur to protect the market and protect value. Larger companies like De Beers have not adjusted prices just yet, but smaller diamond producers have already reduced prices with some showing markdowns of 25 percent.

In case you missed it, New York City will soon see Phase One of business reopenings.

Read Full Article

What to Read Next

The North Face Drops Adventure-Ready Class V Brimmer Hat
Fashion

The North Face Drops Adventure-Ready Class V Brimmer Hat

Made entirely waterproof.

Apple Files Patent for Long-Distance Synthetic Group Selfies
Tech

Apple Files Patent for Long-Distance Synthetic Group Selfies

Perfect for times of social distancing.

Artist Reimagines Tesla's Cybertruck as a Six-Wheel Moon Rover
Automotive

Artist Reimagines Tesla's Cybertruck as a Six-Wheel Moon Rover

A fitting environment for the futuristic vehicle.


Maison Margiela Reimagines the Classic Chelsea Boot With a Tabi Toe
Footwear

Maison Margiela Reimagines the Classic Chelsea Boot With a Tabi Toe

Arriving in dark brown premium suede.

99%IS- Drops 15th Collection "ATT1&TUDE"
Fashion

99%IS- Drops 15th Collection "ATT1&TUDE"

Bajowoo’s riotous imprint returns with a slew of mutinous streetwear.

Apple Card to Add Interest-Free Installment Payments for Macs, iPads, AirPods and More
Tech

Apple Card to Add Interest-Free Installment Payments for Macs, iPads, AirPods and More

As announced by Chief Executive Officer Tim Cook.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.

Help Support Us

We need ads to keep the lights on and to continue providing free news to our readers. We’d appreciate your support by whitelisting HYPEBEAST on your ad blocker. That way you can keep reading all the great stories for free.

If you have already whitelisted us, simply refresh this page. To find out how to whitelist us, click the button below.

Back

Add Us to Whitelist

We appreciate your support in allowing HYPEBEAST ads. Most ad blockers have similar whitelisting steps and settings. If you need assistance, please contact us.

Adblock Plus

  1. Click on the red ABP icon in the upper right corner of your browser.
  2. Click “Enabled on this site” to disable ad blocking for the current site. In Firefox click “disable on HYPEBEAST”.
  3. Refresh the HYPEBEAST page that you were viewing.

Adblock

  1. Click the AdBlock hand icon.
  2. Click “Don’t run on pages on this domain”.
  3. A new “Don’t run AdBlock on…” dialog may be displayed in the middle of the screen.
  4. Move the “Site” slider to the right. After that, click “Exclude”.
  5. Refresh the HYPEBEAST page that you were viewing.

uBlock

  1. Click the uBlock icon.
  2. Click the large blue “power” button in the menu that appears to whitelist the current website.
  3. Reload the HYPEBEAST page that you were viewing.

Firefox Browser

Firefox Tracking Protection may activate our whitelist notice, which can be disabled temporarily for a browsing session by clicking the shield icon in the URL bar and following the instructions.

Disconnect

  1. Click the Disconnect icon.
  2. Click “Whitelist site”.
  3. Refresh the HYPEBEAST page that you were viewing.