It is reported that diamond buyers are "scared to death" by the influence of De Beers, because the prices that the company requests for their diamonds have been too high for them.
Bloomberg quotes Shmuel Mordechai, Director of the Ministry of Economy of the Ministry of Economy of Israel for Diamonds, Gemstones and Jewelry, who says that diamond prices for buyers do not keep pace with rising prices for De Beers raw materials.
"She (De Beers) dictates the price conditions, she manages the market," he said.
Mordechai said that although De Beers is not a monopolist, its influence on the market proves that the prices for diamonds "do not reflect reality."
De Beers owns about 37% of the rough diamond market. The company offers its diamonds to a select group of buyers, so-called sightholders who risk losing the opportunity to buy diamonds from the company if they refuse to cooperate with it, Bloomberg reports.
"De Beers' siteholders, that is about 80 companies, are scared to death," Mordechai said.
"Some sightholders could still go against the will of the monopolist and say that they refuse the site, they no longer want to buy raw materials from De Beers and are tired of such a policy," he added.
At the same time, De Beers spokeswoman Lynette Gould said that the company is constantly reviewing its pricing policy and believes that prices are fair.