Photo: Denis Balibouse / Reuters
Diamonds worth billions of dollars remain unsold worldwide, because the jewelry was useless because of the pandemic coronavirus, according to Bloomberg.
The five largest diamond producers accumulated stocks of jewelry for $ 3.5 billion. The amount could increase to $ 4.5 billion — a third of their annual production. Due to quarantine most of the jewellery shops were forced to suspend the work, therefore, a key sales channel jewelry was closed. In addition, many cutters refused to work, fearing to be infected with the coronavirus.
In may, the Corporation of De Beers has sold diamonds on $ 35 million, and for the same period last year — $ 400 million. The company was forced to cancel the March sale of jewels because the buyers could not travel to see goods. De Beers is struggling to attract customers, and even allow customers to see the diamonds outside of Botswana. There are auctions for a selected clientele that the group selects itself, including, in particular, Signet Jewelers, Graff and Tiffany & Co.
On the background of General decline in the market, small producers of precious stones reduced prices in the quarter. In the end the diamond miners are faced with a collapse in prices and a sharp decline in sales in scale, reminiscent of the 2008-2009 crisis, indicates the Agency.
Despite attempts to cut production, the level of unsold diamonds continues to grow. The Russian company ALROSA said that by the end of the year the reserves of diamonds could rise to 30 million carats, which roughly corresponds to the annual volume of production.
The demand for jewelry among the Russians has decreased by 90 percent due to the introduction of restrictive measures in the country and closure of all sales outlets.
Video, photo All from Russia.