De Beers just announced its first-half of the year financial results, which fell 21% in comparison to the same time frame last year. Supposedly, demand in China has decreased and the demand for diamonds in the U.S. decreased due to "weather-related" issues. (Whatever that means.)
Because of this decrease in demand, De Beers has allowed what they normally have frowned upon - deferrals and declines. Normally, a deferral or outright decline will put a black mark on a company name in De Beers' eyes, but with sales dipping as they have, they have decided to change their policies a bit and be more flexible in their dealings.
“We’ve done this as we recognize that it’s a challenging period for our customers and this provides them with a lot of extra flexibility during this time,” company spokesman, David Johnson says.
This flexibility and change of policies at the moment comes at a time when the Indian diamond industry is suffering. Godhani Gems, an Indian diamond company, is experiencing issues, and, sadly, jobless workers are committing suicide. At the same time, flooding has washed out farmlands, leaving people without jobs and without a way to sustain their families on their crops.
For the sake of everyone involved, the hopes are high that things turn around quickly and the diamond market recovers.