GABORONE, Dec. 4 (Xinhua) -- The world diamond giant De Beers has launched forward contract sales to offer customers the opportunity to bid for future supply of the types and quantities of rough diamonds that they would require at their convenient time.
According to a statement from the company on Wednesday, this move is aimed to secure longer term supply at auction events.
De Beers said the new proposition will complement current spot auction events, adding that 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.
"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," said De Beers senior vice president Neil Ventura.
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 next year.