Leviev attacks De Beers pricing policy

Leviev explained that the diamond industry was facing a number of challenges such as the increase in synthetic diamonds.

June 29, 2006 07:17
1 minute read.
lev leviev 88 298

lev leviev 88 298. (photo credit: Courtesy Photo)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Diamond giant Lev Leviev has spoken out in a fierce attack against De Beers, without actually naming the company, but still blaming the diamond syndicate for the erosion of profits in the industry, while calling the group's pricing policy "bold." "Unfortunately, the diamond industry is undergoing a difficult time," Leviev, the Israeli diamond tycoon and businessman, said at the 32nd World Diamond Congress on Wednesday. "I don't understand why ... are raising the prices of rough diamonds above the listing price and why they are stubborn to lower prices when the market is down." Leviev added that the syndicate expects diamond manufacturers to pay them four days before they even get their stock in an industry in which 90 days credit policy is the norm. Further, he said, it has the "bold" demand that diamond manufacturers to commit to buying stock three years in advance at an agreed price. "I don't know any manufacturer who makes money from standard manufacturing," Leviev said. "One solution would be if rough diamond producers would divide profits with manufacturers so they don't keep all the profit to themselves." Leviev has profoundly shaken the tradition-bound diamond business. Until recently, De Beers had a virtual chokehold on world supplies, controlling about 80 percent of all diamonds produced globally, determining who could buy uncut stones - and at what quantities and quality - and where the cutting centers were allowed to prosper. Leviev, however, pulled an end run around the cartel, dealing directly with diamond-producing governments and shattering De Beers' all-important relationship with siteholders (exclusive buyers of rough diamonds). "Leviev has entered the market offering better prices and credit conditions compared to De Beers, causing this mess and now he is complaining as the market is in a downturn," one industry source told The Jerusalem Post. Leviev explained that the diamond industry was facing a number of challenges such as the increase in synthetic diamonds, which posed a threat to the industry and the need for more transparency in the face of money laundering and blood diamonds. "We need to show how transparent we are," he said.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection