Billions of dollars of unsold diamonds are piling up around the world because no one wants to buy jewelry in the middle of a pandemic
Diamond miners are reportedly stuck with billions of dollars worth of gems as the coronavirus pandemic has left very few people around the world wanting to buy the precious stones, Bloomberg reports.
London-based De Beers, the biggest name in the industry, held a sale in May and sold about $35 million of stones. At a similar sale last year, it brought in $416 million. The five largest diamond producers have perhaps stockpiled"excess inventories" of about $3.5 billion and could touch $4.5 billion, or one-third of yearly production, by the end of 2020, according toDemand has plummeted, and De Beers, a name synonymous with the trade, has seen sales fall sharply. Bloomberg reports that at a May diamond sale it made around $35 million. At a similar event last year, it bought in over $400 million in sales, the report said.
Smaller diamond producers have reduced their own prices. De Beers, a unit of mining group Anglo American, and its Russian competitor Alrosa have reportedly rejected price cuts and would rather allow buyers to pull out of previous contracts.
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