De Beers’ relationship with buyers sours as it refuses to lower prices

London — It is one of the world’s most exclusive clubs, known over the years as the Syndicate, the Central Selling Organization and the Diamond Trading Company.

But the discount has been shrinking. In some cases the prices have been higher than the going trading rate, forcing customers to sell at a loss, according to people familiar with the matter. Some sightholders now struggle to make money from a business that was once highly lucrative. Even so, the relationship between De Beers and its sightholders is becoming strained, as the company keeps prices high even if it means selling fewer stones.

It is impossible to guess how much money some of the company’s customers — which are almost-exclusively private companies — might be losing. For retailers, such as Graff and Tiffany, trading and polishing diamonds is a tiny part of their overall business, and they are less affected. It is a change for an industry where being one of the chosen buyers was long considered the highest achievement

Diamonds are cheap and because De Beers holds a monopoly, they do as they wish...

Didn't they burn diamonds some time in the past to create/maintain a scarcity to drive prices up? Taking our diamonds for nothing and paying next to nothing in taxes and then sell them expensive. Vultures

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