Diamonds in the news: Tiffany to take on De Beers.
This could get interesting:
Excerpt:
Tiffany, the high-end US jeweller, has gone head-to-head with De Beers, announcing last week that it had struck a deal with junior miner Tahera to buy or market all the diamonds from its Jericho mine in Canada.
The move pits Tiffany directly against De Beers, which dominates the global rough diamond market, and other significant players in the value chain such as Israeli Lev Leviev the world's largest polisher, who supplies more than 10 percent of total rough production. Together they maintain a degree of control over the global diamond mining, marketing, manufacturing and retail sales.
Analysts say although Tiffany's strategic move will not make it an immediate counterweight to De Beers, it does illustrate how De Beers'' long-time grip on the marketing of rough diamonds is slipping.
"In Canada, Tiffany is dealing with a first-world country. It only has to link up with two or three more juniors to become a serious challenge to De Beers, which operates in a more difficult environment in Africa," one source said.
Posted by GilbertZ at 03:10 PM
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