What is a sightholder and how does it function in De Beers' supply chain?

• A. A sightholder is a retailer who sells polished diamonds to the public.
• B. A sightholder is a privileged buyer allowed to purchase a fixed portion of De Beers' rough production at set prices during scheduled "sights," often with long-term contracts.
• C. A sightholder is a government regulator overseeing diamond trade.
• D. A sightholder is a mining contractor responsible for extracting kimberlite pipes.

Answer: (B)

A sightholder is a select buyer who gains access to De Beers’ rough production through regular, scheduled events called sights. During these sights, a fixed portion of rough diamonds is offered at pre-arranged prices, and buyers typically enter into long-term contracts to purchase that allocation. This setup gives De Beers predictable control over how much rough leaves its supply chain and helps buyers secure a steady stream of rough for processing into polished diamonds. Sightholders are usually diamond manufacturers or wholesalers who cut and polish the stones and then supply retailers or other buyers, rather than retailers themselves or government regulators.