<\/p>\n
\n\tLONDON \u2014 Could Richemont and Signet help save the embattled diamond industry?<\/p>\n
\n\tAccording to a Bloomberg report, the two jewelry giants are in advanced talks to join the Global Diamond Consortium, which is tipped to buy De Beers from its majority owner Anglo American.<\/p>\n
\n\tLed by former De Beers CEO Gareth Penny, the GDC includes the countries of Namibia and Angola. Botswana, which part-owns De Beers, is planning to increase its stake in the miner to 25 percent from 15 percent.<\/p>\n
\n\tWWD has reached out to Richemont and Signet for comment.<\/p>\n
\n\tNatural diamond prices have been under assault due to the proliferation of lab-grown gems, which are selling at a fraction of the price and available everywhere from high-end jewelry stores to supermarkets.<\/p>\n
\n\tAccording to RBC Capital Markets, synthetic diamonds now constitute 50 percent of total diamond volume, and 15 percent of total diamond value. The popularity of lab-grown gems is wreaking havoc on the prices of natural rocks. <\/p>\n
\t\t\t\t\tUndulation high jewelry rings, including a toi-et-moi model on the right, from De Beers London.<\/p>\n
\t\t\t\t\t\t\t\t\tCourtesy of De Beers London<\/p>\n
\n\tIn the first half of 2026, De Beers\u2019 rough-diamond price index fell 16 percent year-over-year, while the average realized diamond price fell 32 percent to $105 per carat.<\/p>\n
\n\tAs reported, Anglo American is selling its 85 percent stake in De Beers as part of a wider restructuring plan to simplify its portfolio, create value for shareholders and divest noncore businesses. Going forward Anglo American will focus on the more lucrative copper, iron ore and fertilizer sectors.<\/p>\n
\n\tThe mining giant is looking to sell its stake in De Beers for around $1 billion. The sale would include the De Beers London jewelry brand, which has 37 stores globally and plays in the high-jewelry end of the market.<\/p>\n
\n\tIn a report published on Thursday, Piral Dadhania of RBC Capital Markets said the bank viewed Richemont\u2019s potential participation as \u201cstrategically meaningful, but more about optics and long-term natural diamond category positioning than a financial event.\u201d<\/p>\n
\n\tDadhania said Richemont\u2019s stake in De Beers would likely be \u201crelatively small\u201d given the number of existing and prospective owners. He added that given Richemont\u2019s strong net cash position of 8.5 billion euros \u201cwe do not envisage a meaningful financial impact\u201d on the overall group.<\/p>\n
\n\tHe noted that jewelry accounts for around 55 percent of Richemont\u2019s group revenue, so \u201cmaking any move to support the natural diamond ecosystem is a rational hedge against lab-grown competition, which has compressed polished diamond prices in recent years.\u201d<\/p>\n
\t\t\t\t\tCartier high jewelry rings unveiled in 2025.<\/p>\n
\t\t\t\t\t\t\t\t\tCourtesy of Cartier<\/p>\n
\n\tThe RBC report also pointed out that Richemont is likely one of De Beers\u2019 largest customers, \u201cgiving it an important voice in the future of the natural diamond industry.\u201d The report added that if the world\u2019s big jewelers did join the consortium, \u201cit could help to stabilize, and eventually improve, broader consumer perception of natural stones.\u201d<\/p>\n
\n\tIn a separate report, Jefferies\u2019 James Grzinic said an investment by Richemont would be \u201cstrategically sound.\u201d He argued the investment could potentially help Richemont \u201csource very large, high-quality diamonds at a time when the boom in high jewelry sales has heightened the competition for multimillion-dollar stones,\u201d among a small group of jewelers.<\/p>\n
\n\tRichemont and Signet are not the only organizations backing natural diamonds.<\/p>\n
\n\tLast month, the London-based Natural Diamond Council rebranded as The Diamond Collective with the mission of \u201creigniting the desire for natural diamonds.\u201d<\/p>\n
\n\tThe new collective aims to unite \u201cproducers, retailers, brands, designers and new voices together around shared priorities for growth, to strengthen consumer confidence and clearly differentiate diamonds from synthetic diamonds.\u201d<\/p>\n
\t\t\t\t\tSignet-owned Blue Nile diamond jewelry with Royal Asscher diamonds.<\/p>\n
\t\t\t\t\t\t\t\t\tCourtesy of Blue Nile<\/p>\n
\n\tAmber Pepper, CEO of The Diamond Collective, said the organization \u201cwill bring the extraordinary story of natural diamonds into culture, strengthen trust in what makes them unique and inspire a new generation to choose them. This is how we will transform enduring emotional desire into lasting demand.\u201d<\/p>\n
\n\tBotswana is playing a big role, too. <\/p>\n
\n\tAs reported, De Beers and the government of the Republic of Botswana have tapped the Olympic gold medal athlete Letsile Tebogo to promote the African nation as a heartland of natural diamonds, and to mark its 60 years of independence.<\/p>\n
\n\tBogolo Kenewendo, Botswana\u2019s minister of minerals and energy, said \u201cnatural diamonds have helped transform our country and create opportunities for generations of Batswana. Letsile\u2019s rise to Olympic champion is a powerful example of what can be achieved when talent meets opportunity.\u201d<\/p>\n
\n\tHe added: \u201cThrough this partnership, the government of Botswana, De Beers Group and Letsile Tebogo will share Botswana\u2019s story with global audiences while highlighting the enduring value and positive impact of natural diamonds.\u201d<\/p>\n
#Diamond #Industry #Trouble #Richemont #Signet #Save<\/p>\n","protected":false},"excerpt":{"rendered":"
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