Editor’s Note
The global diamond industry is facing unprecedented challenges as the coronavirus crisis disrupts supply chains and consumer demand. This article examines the sharp decline in sales and the resulting inventory buildup among major producers.
The global sales volume of diamonds has been significantly reduced due to the coronavirus crisis, which has blocked the industry, leading producers to accumulate large quantities of these precious stones.
Thus, it is believed likely that the world’s five largest diamond marketers have around $3.5 billion in inventory, reports Bloomberg Quint.
As restrictions created to prevent the spread of the coronavirus begin to be lifted, the diamond industry faces a dilemma: trying to reduce its inventory surplus while simultaneously protecting its industry.
The vaults of two of the world’s largest diamond companies – De Beers, based in London (United Kingdom), and its Russian rival Alrosa – continue to accumulate these precious stones despite their efforts to control stock levels, reduce production, and maintain fixed prices.