Diamond prices worldwide have been experiencing a decline in demand even before the COVID-19 pandemic halted weddings celebrations globally. Anglo American’s De Beers unit has seen a plunge in earning due to the global economic weakness.
As South African diamond companies lose out on international sales. they’ve begun focusing on customers closer to home. Many smaller jewellers and jewel producers have experienced an upsurge in sales. According to Reuters, lockdown has helped South African cutting and polishing firm Nungu Diamonds grow sales by 60% since March.
The Company’s founder Kealeboga Pule said that they have had customers opt for online consultations and many lined up to excitedly collect their purchases when their stores reopened in June. In fact, June was their best-performing month of the year, with many sales including engagement and wedding rings being made. The team has even expanded to include an in-house jewellery designer.
While jewellery prices have remained steady, the demand on uncut and unpolished rough stones from mines has decreased and thus profit margins have lowered.
This has led to South African company Thoko’s Diamonds pivoting from their main business of selling rough, polished stones to focusing on jewellery. Within the last year, their typical sales of 500 carats fell to less than 20 carats, and profits decreased by 65%.
Being a luxury commodity, diamonds will continue to lose demand as the effects of the pandemic worsens the economic status of citizens across the world.
Feature image: Unsplash
