De Beers Closes Diamond-Reselling Unit

RAPAPORT… De Beers is shutting its diamond-recycling division, as digital advancements in the sector have lessened the need for its services.

The International Institute of Diamond Valuation (IIDV) was
set up in 2016 to repurchase and recycle diamond jewelry that consumers no longer
wanted. De Beers began the operation after noting the difficulty consumers
faced in trying to sell their jewelry at a fair price. The venture provided a
means of emphasizing the enduring value of diamonds, De Beers said.

However, since IIDV launched, technology in the industry has
improved, and online consumer-to-consumer selling platforms have become a more
popular option, the company explained.

“Following a number of years gaining experience in the
diamond-recycling sector, we have taken the decision to suspend the activities
of the International Institute of Diamond Valuation,” David Johnson, De
Beers’ senior manager for media and commercial communications, told Rapaport
News Thursday.

While the project is no longer a viable option, it has
provided De Beers with valuable insight into consumer behavior and the needs of
its retail partners, Johnson explained.

“We know that consumer acceptance of the
consumer-to-consumer market is growing and likely to be the future of this
sector, and we will therefore continue to look for opportunities in this
space,” he added.

Image: Diamond solitaire earrings. (De Beers)