De Beers Loses $521 Million!

De Beers net earnings fell into the red from a profit of $730 million in 2006 to a LOSS of $521 million in 2007. Diamond sales fell 3 percent to $6.4 billion.
In the year 2007, where prices and sales of diamonds were very strong, for every well managed company in the world, we can ask ourselves, how come De Beers in its dominant position, is unable to generate profit? Accounting schwindle? Bad strategy or incompetent management?

Opportunities in The Diamond Industry

The diamond industry is undergoing a period of great opportunity and challenge as a rapidly expanding global economy creates unprecedented wealth.
Demand for large, fine quality diamonds has increased significantly over the past few years, while supply has remained stable due to natural scarcity.
In some instances scarcity and the resultant higher prices, have increased demand for very expensive conspicuous consumption diamonds.

HRD doubles working space at lab.

HRD Antwerp NV, the subsidiary of the Antwerp World Diamond Center (AWDC), experienced a double-digit increase in diamond certification submissions for 2007. As demand continues to grow for HRD's lab services, the group inaugurated a much larger working space today, and intends to add more space this year.

"With this investment, HRD Antwerp proves its faith in the future and in Antwerp's leading role in the field of diamond certification", said Georges Brys, general manager of HRD Antwerp. "The centralization of all grading activities worldwide in our central office in Antwerp, has led to a huge volume and taxed the grading capacity of the lab in 2007. By the end of 2008, the physical working space of the diamond lab should be doubled."