Georgette Boele

Se­nior Pre­cious Met­als & Di­a­mond An­a­lyst, ABN Amro

Solitaire - - INDUSTRY INSIGHT -

(Ex­cerpts from ABN Amro’s Di­a­mond Sec­tor Watch re­port, dated June 11th, 2018)

W e have not been present in De Beers’ board­room but we think that the most likely strate­gies be­hind the an­nounce­ment of De Beers are as fol­lows. First, De Beers would like to cre­ate clear seg­men­ta­tion of the two dif­fer­ent in­dus­tries: a nat­u­ral di­a­mond in­dus­try and a lab­o­ra­to­ry­grown di­a­mond in­dus­try. If suc­cess­ful, it could pro­tect the rev­enues from the mined di­a­mond busi­ness. It is pos­si­ble to cre­ate two dif­fer­ent in­dus­tries. How­ever, it re­mains to be seen if this will hap­pen. Mar­kets will only re­main sep­a­rated if the prod­ucts in the two dif­fer­ent mar­kets are suf­fi­ciently dif­fer­ent.

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