Diamond industry 'in trouble' as lab-grown gemstones tank prices further
“A diamond is forever,” but perhaps not for the increasing number of consumers spurning the gemstone for lab-grown counterparts, gold and even other colored gemstones.
“A diamond is forever,” but perhaps not for the increasing number of consumers spurning the gemstone for lab-grown counterparts, gold and even other colored gemstones.
The slogan was coined by diamond giant De Beers in 1948, capturing the impression of security and romance. But not all relationships withstand the test of time.
The company’s largest shareholder Anglo American plans to divest De Beers as it restructures its business after rejecting a takeover bid from BHP. Anglo American CEO Duncan Wanblad told the Financial Times that selling De Beers will be “the hardest part” of the company’s radical restructuring.
“Diamonds don’t really fit in anymore despite the strong legacy of De Beers under Anglo,” said independent diamond industry analyst Paul Zimnisky.
“Anglo is ultimately going to do what its shareholders want, and it seems they want to focus on a longer-term strategy of commodities that support the green infrastructure buildout, for example copper,” he told CNBC.
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