News

Advanced Search

De Beers To Halve Diamond Stockpile

Oct 19, 1999 11:39 AM   By Tony Attrino
Email Email Print Print Facebook Facebook Twitter Twitter Share Share
(Rapaport…NY, Oct. 19, 1999) – De Beers plans to cut its diamond stockpile to somewhere between $1.5 to $2 billion from $4.6 billion in order to boost shareholder value.

“We are clearly of the mind that we will in due course see a reduction of our stockpile,” said De Beers spokesman Andrew Bone. “But it certainly won’t be in a haphazard way.” Bone said the reduction would likely take place in the next few years. “It depends on how quickly we can increase the number of consumers buying diamond jewelry,” he said.

De Beers has also said it plans to shift its marketing policy to focus on increasing global demand for diamonds rather than simply relying on building up its London stockpile in order to control market supply. De Beers share price has consistently underperformed the Dow Jones Industrial Average stock index in the past 10 years, prompting a strategic review of the firm’s operations.

Tags: Consumers, De Beers, Jewelry
Similar Articles
Mountain ProvinceGahcho Kué Production Set to Rise
Nov 28, 2018
Production at the Gahcho Kué mine is likely to exceed expectations for 2018 before increasing steadily over
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.