According to the Financial Times (FT) De Beers says that the diamond market is stabilizing.
The chief executive of De Beers in Botswana, Sheila Khama told the Financial Times “Consumption has not improved to anywhere near the levels that we are accustomed to . . . but the abrupt rate at which it [consumption] was dropping has started to stabilise,”
Sales of diamonds in large quantities to its clients every five weeks, known as “sights” has also increased.
She also noted that they could see their clients are in better financial state
Its mines in Botswana are operating at 80% capacity.
The diamond industry was among the worst hit by the economic recession, because it is a luxury item.
De Beers produces 40% of the worlds rough diamonds.
US retailers are more confident that more diamonds and jewelry will be sold this Thanksgiving and Christmas season. She said 80% of US diamonds are bought during this period.