What does De Beers require sightholders to demonstrate financially?

De Beers requires sightholders to demonstrate financial strength for large purchase commitments because the nature of the diamond industry often involves significant financial transactions. Sightholders are companies that have been granted the exclusive right to purchase rough diamonds directly from De Beers at regular, scheduled intervals known as sightholder sales or "sights." This relationship necessitates that these companies have the financial capability to engage in large-scale purchases consistently over time.

Financial strength assures De Beers that the sightholders can uphold their commitments, manage inventory effectively, and pay for the substantial capital required in their operations. This requirement is crucial for maintaining a stable supply chain and ensuring that only financially sound companies participate in the purchasing process, ultimately supporting the integrity of the diamond market.