De Beers Auction Sales has launched forward contract sales to 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.
The purchase price for the required volume of rough diamonds in a forward contract will 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 matures.
During the launch of first forward contract auction event, registered customers of De Beers Auction Sales were able to bid for future supply up to three months in advance. It is anticipated that forward auctions with the ability to bid for future supply of rough diamonds over a 12 month period will be introduced in 2014.
“Customers have expressed their desire to secure future supply at auctions so that they can plan their activities more effectively and commit to longer term agreements with their own customers,” said Neil Ventura, Senior Vice President of De Beers Auction Sales.
“We see forward contracts as the ideal mechanism to deliver this and believe they will be a valuable addition to our customer offering”.
Approximately 10 per cent of De Beers’ rough diamonds are sold through its auction platform.