De Beers, the World`s largest diamond company, is taking several steps to withstand the economic recession that is now affecting the diamond industry as well.  First, De Beers will borrow $50 million from Anglo American PLC and other shareholders to "withstand any shocks" after diamond and gem demand worldwide has fallen more than 50 percent.  Also, Debswana Diamond Co., a joint venture between De Beers and Botswana that produces almost one-fifth of the world`s diamonds, will shut down all of its mines until at least April 14, as the market is already flooded with diamonds and other gems.  The company also plans to cut 580 jobs and try to deploy those workers elsewhere in the company. 
Brock Salier, a mining analyst at Ambrian Partners Ltd London said via email that "This is a major chunk of worldwide production.  Although bad news for the Botswana economy, we expect that this will stabilize the supply demand balance."  The closures of the mines are being done to help offset the effects of the decrease in demand for expensive diamonds and gems by reducing production in an already-flooded market.

New York-based Tiffany & Co., the world`s second largest high-end jewellery retailer said that holiday sales declined 21 percent from 2008.  Switzerland`s Cie. Financiere Richemont SA, makers of Van Cleef & Arpels jewellery, said in January that this is the toughest market they have faced in 20 years.  Luxury jewelers will certainly bear the brunt of this crisis, as Americans—expected to purchase 22% less in the next year—look to other less expensive but high-quality jewelers to make their diamond jewelry purchases.