It seems that diamonds are losing their sparkle, and now they are being offered with discounts of up to 25 percent...
The diamond business has seen a decline in its shine in recent years, and the largest producer in the industry aims to restore some of its brilliance. De Beers is taking steps to reignite demand for precious gems by cutting prices in one of the most significant reductions in recent years, according to a new Bloomberg report. In its first sale of the year, the company slashed prices by 10 percent across the board, offering discounts of up to 25 percent on some larger specimens.
In recent years, there have been many ups and downs in the diamond industry. During the pandemic, like many luxury products, diamonds experienced a surge thanks to consumers buying online during Covid lockdowns. However, as that demand waned, a surplus of supply plagued the industry. Then, an inflation wave dampened sales, while lab-grown diamonds began to diminish the demand for natural stones. All of this was happening as the Chinese market also took a downturn.
To prevent a complete collapse of prices, last fall, the two largest diamond mining companies - De Beers and Russian Alrosa - completely halted diamond sales. Alrosa, now facing an EU sales ban due to the Russian invasion of Ukraine, halted transactions for two months from September, while De Beers did the same in October. Both companies resumed selling rough diamonds to finish the year after the market stabilized.
For the beginning of 2024, De Beers made the most significant price cut in the "select makeables" category, which includes diamonds between two and four carats, usually divided into smaller stones and cut for use in rings. This class of diamonds, which faced competition from lab-grown diamonds, saw a 25 percent reduction by De Beers. The last time the company made such a significant discount was in 2019 when it was dealing with a surplus of diamonds. Now, De Beers will have to see if their latest move can brighten the future of the industry.
