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De Beers to offer forward contract sales

De Beers to offer forward contract sales

Photo by Duane Daws

3rd December 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Diamond group De Beers’ Auction Sales division would now offer clients an opportunity to bid for future diamond supply, in addition to the current spot auctions.

The new forward contract sales would provide customers the opportunity to secure longer-term supply at auction events and enable more effective activity planning and commitment to longer-term agreements with their own customers.

“[The] forward contract sales [will] offer customers the opportunity to bid for future supply of the types and quantities of rough diamonds they require, when they require them. The new proposition will complement current spot auction events,” explained De Beers Auction Sales senior VP Neil Ventura in a statement.

The purchase price for the required volume of rough diamonds in a forward contract would be determined by a customer’s bid relative to the spot price for the same type of goods at the De Beers Auction Sales spot auction event when the contract matured.

The first forward contract auction event on Tuesday had enabled registered customers to bid for future supply up to three months in advance; however, the company envisaged 12-month advance bidding being introduced in 2014.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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