De Beers August Sight Estimated at $520M

$520 million De Beers August sight after sightholders refused a significant part of the goods on offer. De Beers have adjusted prices on some cheaper Indian and rejection boxes.

The Indian rupee fell to a low of 69.22/$1 during sight week. The currency has lost fell 8.1 percent in August, recording its worst month since 1992.

The sightholders said that the adjustment wasn’t enough to make a difference for the devaluation of the rupee against the US dollar, which has affected the Indian diamond manufacturers.

This has cause a liquidity problem in the manufacturing sector as banks have become more prudent in their lending to the industry.  Activity on the secondary market is limited as people are not buying without 90 to 120 days credit.

October site will be the final sight that De Beers holds in London. The company will transfer its sightholder sales to Gaborone, Botswana by the November sight.

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