De Beers confirmed it will contract with roughly 45 sightholders beginning July 1, 2026, down from the approximately 69 buyers who held contracts through the previous cycle. The mining conglomerate simultaneously raised its minimum annual rough diamond purchase requirement to $15 million per sightholder, a threshold that effectively culls smaller regional wholesalers and consolidates volume among well-capitalized manufacturers and dealers. The move arrives as Anglo American progresses through a formal sale process for De Beers, with carrying value now written down to $2.3 billion following three separate impairments over the past two years.

Trade sources note the $15 million floor represents a significant barrier for mid-tier operations that historically relied on flexible allocations during downturns. Sightholders purchase rough diamonds at fixed intervals through the year under non-negotiable contracts; those unable to meet the new threshold have been redirected to De Beers' auction platform or secondary brokers. The company has not disclosed allocation methodology for the retained 45, though industry observers expect preference for vertically integrated manufacturers with retail presence and strong balance sheets.

Retail wholesalers without manufacturing scale face narrower access to consistent De Beers rough under the tightened sightholder criteria.

Anglo American Divestiture Timeline and Valuation Pressure

Anglo American's board committed to divesting De Beers as part of a broader portfolio restructuring, with formal sale proceedings now underway and updates expected through the remainder of 2026. The mining group has absorbed three write-downs on its De Beers stake over 24 months, reflecting both cyclical weakness in natural diamond demand and structural headwinds from lab-grown market share gains. Lab-grown diamonds accounted for 20 percent of total diamond sales by unit volume in 2024 and captured 52 percent of US engagement ring center stones, up from 1 percent in 2015 and 12 percent in 2019.

The carrying value reduction to $2.3 billion does not yet reflect final sale price, which will depend on buyer appetite for long-term natural diamond economics. Potential acquirers include sovereign wealth funds, private equity groups with commodities exposure, and existing diamond conglomerates seeking vertical integration. Anglo has not set a public reserve price or timeline for binding offers.

Natural diamond pricing continues to reference the Rapaport price list as the industry standard, though discounts to Rap have widened across most categories in the past 18 months. Lab-grown stones lack a uniform pricing model, with transaction prices varying by producer, retailer, and certification lab. Jewelers report increasing consumer confusion over value retention between natural and lab-grown inventory.

Acquirers of De Beers will inherit both sightholder consolidation gains and the strategic challenge of defending natural diamond premium against lab-grown substitution.

LVMH and Richemont Quarterly Performance Signals Modest Recovery

LVMH reported 3 percent organic growth in its Watches & Jewelry division for the fourth quarter of 2025, a modest uptick that nonetheless exceeded analyst expectations given headwinds in Greater China. The conglomerate's watch portfolio includes TAG Heuer, Hublot, and Zenith, while jewelry is anchored by Bulgari and Chaumet. Richemont posted 5 percent group-wide sales growth for the nine months ending December 2025, though its Specialist Watchmakers segment rose only 1 percent at actual exchange rates.

Richemont's Specialist Watchmakers category covers brands such as A. Lange & Söhne, Jaeger-LeCoulte, and Panerai. The muted single-digit gain reflects softness in Asia-Pacific retail and inventory destocking among authorized dealers. Richemont executives noted on earnings calls that grey-market discounting persisted in secondary hubs, pressuring full-price sell-through at boutiques.

Signet Jewelers, the largest specialty jewelry retailer in North America, recorded full-year sales of $6.81 billion for the fiscal year ending January 31, 2026, up 1.6 percent year-over-year. Same-store sales remained flat, with growth concentrated in e-commerce and services revenue rather than traditional jewelry categories. Signet's bridal segment, historically its largest driver, showed minimal unit growth as consumers delayed purchases or opted for lab-grown center stones at lower price points.

Publicly traded watch and jewelry conglomerates are delivering low-single-digit growth, with bridal and Asia-Pacific channels lagging broader portfolios.

Swiss Watch Employment Decline and Retailer Bifurcation

The Swiss watch industry shed 1.3 percent of its workforce in 2025 according to the Federation of the Swiss Watch Industry survey published in September. The decline marks the second consecutive year of net job losses, driven primarily by mid-tier brand consolidation and automation of assembly tasks previously performed by entry-level technicians. Employment in movement manufacturing fell more sharply than in final assembly or after-sales service, reflecting margin pressure on mechanical caliber production.

Swiss watchmakers continue to face a strong franc, elevated input costs, and geopolitical uncertainty that complicates export planning. US tariff volatility added a layer of complexity in early 2026, with several brands delaying spring shipments pending clarity on duty structures. The Federation's February 2026 outlook cautioned that export growth would remain constrained through the first half of the year.

Retail performance has bifurcated along geographic and channel lines. Watches of Switzerland reported 20 percent sales growth in its US operations for the calendar year ending December 2025, while UK same-store sales remained flat. The company attributed US strength to branded boutique openings in secondary cities and strong demand for steel sports models from Rolex and Patek Philippe. Branded boutique expansion has slowed industrywide, however, as brands reassess lease economics and foot traffic in top-tier shopping districts.

Swiss watch employment contraction and uneven retail performance suggest ongoing structural adjustment rather than cyclical downturn.

Trade Show Calendar and Dealer Inventory Strategy

Watches & Wonders Geneva ran April 14 through 20, 2026, drawing the usual concentration of manufacture executives and authorized dealers. JCK Las Vegas and Vicenzaoro remain on the calendar for later in the year, though exact dates for the US show have not been finalized as of press time. Dealer sentiment at Watches & Wonders leaned cautious, with buyers prioritizing fill-ins on proven references over speculative new-release orders.

Inventory turns have stretched across most product categories as dealers balance the risk of stockouts on high-demand pieces against the carrying cost of slower sellers. Several multi-brand retailers reported they are reducing total SKU count and concentrating buys on top-performing brands, a shift that pressures independent and mid-tier manufactures reliant on multi-brand distribution.

Whether De Beers' 45-sightholder model stabilizes rough pricing or accelerates secondary-market fragmentation remains the central question for diamond wholesalers heading into the second half of 2026.