Confessions Of A De Beers Addict
Updated: Feb 26
Hello, my name is Avi Krawitz, and I’m addicted to De Beers. It’s been four days since I last wrote about the company, and two weeks since I posted a video about it.
While I understand every day is a victory in this struggle, it’s becoming increasingly difficult to ignore this unrelenting urge to publish my thoughts about De Beers. There’s just so much going on!
I guess it’s an occupational hazard we must all deal with. That’s one of the reasons I value this group so much. As fellow travelers on this diamond journey, I feel only you can relate to the feeling that there’s over a century of history and industry influence feeding my obsession.
Now, in the middle of sight week, just a few days after Anglo American published its 2024 earnings, with a less than flattering report about the diamond market, which led to a massive reduction in De Beers book value, as Anglo American considers its options to divest from the diamond miner, just as De Beers Jewellers rolled out its rebrand, and as we wait for the final signing of De Beers agreements with the Botswana government, I have no choice but to bring it up.
And you’ll excuse that run-on sentence. There’s just no way to express all that in more than one breath.
>>> So where do we begin?
Firstly, keep an eye on De Beers Origins strategy through which the company is looking to raise its profile and value proposition. Part of the story is its return to category marketing, which I explore with Sally Morrison, natural diamonds market lead at De Beers, in my latest blog post: Can De Beers Modernize ‘A Diamond Is Forever?’
This morning De Beers announced its diamond verification device, DiamondProof, which differentiates natural from lab-grown and diamond simulants, is now available in select US retail stores. Cool, I agree, it’s all about infusing consumer confidence in natural diamonds.
De Beers Jewellers has rebranded as De Beers London, to emphasize the brand’s place in the high-end luxury world by linking the jewelry house to one of the fashion and luxury capitals of the world, it explained. I won’t lie, I don’t fully understand this one and need to think it through. I’m just wondering if it limits the jeweler’s positioning as a global brand – if that’s what it wants.
De Beers London also launched its 2025 brand campaign ‘Portraits of True Brilliance,’ and Celine Assimon stepped down from her role as CEO of the brand.
This week’s sight is said to be another small one, with De Beers keeping prices stable and giving more than usual flexibility for sightholder rejections.
Market sources anticipate De Beers and the Botswana government will sign their long-overdue marketing and mining license agreements this week during the sight. (Fingers crossed).
But the big news of the week was that Anglo American reduced its book value of De Beers by $2.9 billion, “reflecting further near-term adverse macro-economic conditions and industry-specific challenges.” Anglo now has a $4.1 billion carrying value for the diamond unit, of which it owns an 85% stake. (See Page 69 to 71 of the Anglo report)
Is that the valuation Anglo expects from a potential De Beers sale or public listing? It might be ambitious if current market conditions persist, as reflected in Anglo's 2024 earnings report. Here are the key metrics presented about De Beers performance (see page 27 of the Anglo report):
Some key market feedback provided in the earnings:
Global consumer demand for diamond jewelry contracted 3% to 4% in 2024, De Beers estimated, with US demand down 2%.
Midstream inventory increased sharply but plateaued in the fourth quarter due to reduced rough supply, enabling polished prices to stabilize at year-end.
Near-term market conditions are expected to remain challenging in 2025 as polished demand remains subdued and industry players continue to manage inventory levels.
So having set a new world record for the number of times “De Beers” is mentioned in one article, I think I got it out of my system for this week. Thanks for indulging in my compulsion. I can’t say I won’t write more about the company before our next meeting, but I sure will try not to. They don’t make it easy to ignore…
Let’s get to some other pressing matters:
>>> The EU will not require traceability-based evidence of origin for rough imports from March 1, as previously stipulated. The deadline has been pushed to January 1, 2026, the Antwerp World Diamond Centre (AWDC) said.
However, it will require importers to present a Kimberley Process (KP) certificate that mentions the countries of origin for all diamonds in the shipment.
KP certificates marked as ‘Mixed Origin’ will not be accepted, and neither will rough diamonds coming from mining companies who aggregate their rough production themselves. Keep in mind that last June, the KP passed a resolution enabling countries to proactively list the country of origin on mixed parcels.
And download the important AWDC press release.
Okay, I think I’ve thrown enough at you for one weekly memo. Besides, any other matters seem to pale in comparison to the De Beers and AWDC announcements.
Hot off The Diamond Press
This week in the diamond world (news roundup)
I discuss soaring gold prices with David Brough (watch video).
What I’m listening to
>>> On his Modern Wisdom podcast, Chris Williamson chats with Rory Sutherland, vice chairman of Ogilvy Advertising, about The Secret Weapons of Marketing Psychology. There’s so much in this discussion that made me think about the diamond industry and its approach to marketing. I’m a great admirer of Modern Wisdom and a huge fan of Rory Sutherland, who may well be at the top of my dream interview list.
Coming up
De Beers sight: February 24 to 28
Bangkok Gems And Jewelry Fair: February 22 to 26
Hong Kong International Diamond, Gem & Pearl Show: March 2 to 6
Hong Kong International Jewellery Show: March 4 to 8
Pic of the week
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