Gems sales rise but De Beers warns

DIAMONDS group De Beers revealed it had enjoyed a solid rise in sales of its rough gems in the first half of this year, but warned that consumer demand would have to jump sharply between now and Christmas to justify the restocking by its customers.

Managing director Gary Ralfe said demand for diamond jewellery needed to rise by about 6% in this half to absorb the 8 1/2% increase in sales of rough gems recorded by De Beers in the past six months, taking the total to $2.8bn (£1.8bn). But Ralfe acknowledged this was a 'stretch target' and represented a big jump on the 1% rise reported for the first half as fears of a double-dip recession took hold in the US.

Ralfe also said he was confident the European Commission's investigation into De Beers' cartel would not force it to make significant changes to the way it operated.