De Beers customers will now be able to bid for future supply of rough diamonds according to type and quantity and when they require them.
The company announced its auction sales division is now offering forward-contract sales, a service designed to complement current spot auction events.
“Customers have expressed their desire to secure future supply at auctions so 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.”
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 a recent forward-contract auction event, customers were able to bid for future supply up to three months in advance. The company said it expects to introduce forward auctions in 2014 with the ability to bid for future rough supply over a 12-month period.
