De Beers' Diamond Price Cut: Reviving the Market in 2024

De Beers, the world’s top diamond producer, has taken unprecedented steps to stimulate the market which almost came to a standstill in 2023. BNN Breaking can report that the company has significantly reduced its diamond prices, a move directed towards boosting sales in an increasingly challenging market.

A Strategic Reduction

In the first sale of 2024, De Beers implemented a sweeping price cut across its range of diamonds, with reductions hitting approximately 10%. Larger stones, however, saw a more drastic decrease, with prices falling by up to 25%. This measure comes as an aftermath of the diamond industry’s near halt in the second half of 2023, which saw major mining companies, including De Beers and Russia’s Alrosa PJSC, sharply curtailing supplies to prevent price collapses.

From Pandemic to Overstock

The pandemic initially triggered a surge in diamond demand, with consumers focusing on luxury purchases while in the confines of their homes. Yet, as economies reopened, demand plummeted, leading to an overstock of inventory and soaring purchase costs for traders. The situation was further aggravated by rising inflation in the US, a property crisis in China weakening consumer confidence, and a surge in competition from lab-grown diamonds.

Industry Future Hinges on Price Cuts

De Beers had previously allowed customers to refuse contracted gems during the last two sales of 2023 but refrained from slashing prices then. The latest sale ends this flexibility, compelling buyers to accept the prices and quantities offered. Diamonds in the ‘select makeables’ category, ideal for cutting into smaller stones for bridal rings, experienced the steepest price cut, following a reduction last year. The future of the diamond industry now hangs in the balance, with hopes that these price cuts will generate enough momentum to offset the challenges it has faced, including stiff competition from synthetic diamonds, whose prices have also taken a tumble.