De Beers taking 'serious look' at diamonds as investment

Diamonds

Save

E-mail

De Beers taking 'serious look' at diamonds as investment

By Michelle Graff

May 19, 2009

Similar Stories | Topics

STORIES

De Beers' production down 90 percent in 1Q

De Beers cites market improvement

De Beers notes improvement in diamond production

De Beers axes 25 percent of U.K. staff

Sales up slightly for De Beers in '08

London--The drop in traditional demand for diamonds has De Beers taking a "serious look" at an alternative market for the stones--diamonds for investment, a company spokeswoman confirmed to National Jeweler.

De Beers spokeswoman Lynette Gould said over the last few months, a number of people--both representatives of high-net-worth individuals and funds--have approached De Beers expressing interest in investing in diamonds as an asset, likely due to the recent investment boom in commodities.

"These approaches," she said, "have caused us to have a serious look at this opportunity."

Gould notes that while De Beers traditionally has not been interested in diamonds as an investment--fearing that it would cause price volatility and speculation that could ruin the market for the stones as a luxury product--the "changing business environment" has the diamond giant changing its tune.

"Diamonds for investment could offer an, as yet untapped, further source of demand," Gould said.

Gould's response came after an article appeared on Friday in London's Financial Times, stating that De Beers has launched a "global campaign" to convince investors that diamonds are on par with gold as a safe haven for investment.

Gould, however, stopped short of calling De Beers' current interest in diamonds as an investment a "campaign" on the same level as the enduring-value campaign it used to promote diamonds this past holiday season.

"It's just something we're looking into, very early days," she said.

She also noted that De Beers' "core messages" around diamonds as the ultimate symbol of love and romance aren't changing.

"Diamonds are always in fashion, like the little black dress of jewelry," she said. "They're elegant and timeless. These are foundations on which our industry is built and should always be front of mind."

Save

E-mail

Diamonds

Industry calling for swift action on Zimbabwe

Jewelers of America is calling on the Kimberley Process to fully and quickly implement a work plan to address the serious concerns surrounding Zimbabwe's non-compliance with the Kimberley Process Certification Scheme, the system designed to keep conflict diamonds out of the international trade, and the reported human rights abuses in the Marange diamond fields. Read More

Sotheby's reports record-breaking sales in Geneva

Diamond symposium focuses on 'new normal'

More Diamonds

More Like This

De Beers' production down 90 percent in 1Q

May 01, 2009 | National Jeweler Network

De Beers cites market improvement

April 21, 2009 | National Jeweler Network

De Beers notes improvement in diamond production

April 16, 2009 | National Jeweler Network

De Beers axes 25 percent of U.K. staff

April 07, 2009 | National Jeweler Network

Sales up slightly for De Beers in '08

February 20, 2009 | National Jeweler Network

Video

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.

Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.

ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.

Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.

Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.

CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.