De Beers Launches Forward Contract Sales Initiative
December 03, 13Neil Ventura, Senior Vice President of De |
The new proposition will complement current spot auction events, the miner said.
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.
At today’s 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. The firm said that it is likely that forward auctions with the ability to bid for future supply of rough diamonds over a 12-month period will be introduced in 2014.
Neil Ventura, Senior Vice President of De Beers Auction Sales, said: “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. We see forward contracts as the ideal mechanism to deliver this and believe they will be a valuable addition to our customer offering”.
De Beers sells approximately 10 percent of its rough diamonds via its auction platform.