DeBeers Slashes Diamond Prices to Boost Market

by Warren Seah

DeBeers, the world’s largest diamond producer, has reportedly taken measures to revive a sluggish market by significantly reducing prices at its first sale of the year. According to sources cited by Bloomberg, the company, majority-owned by Anglo American, has cut prices by 10%, with some larger stones seeing reductions of 25%.

The diamond industry has faced challenges in recent years due to a combination of factors, including a global economic downturn, growing popularity of lab-grown diamonds, and a decline in marriages and engagements following the pandemic. In response, DeBeers announced its plans in December to sell around two-thirds fewer diamonds during the final sales cycles of 2023 compared to the previous year, in an effort to address a market glut.

To generate demand, DeBeers launched a revamped version of its iconic “A Diamond is Forever” advertising campaign in the United States and China last year. However, the impact of these efforts remains to be seen.

As manufacturers require time to cut and polish the rough diamonds they purchase, DeBeers and other gemstone sellers divide the year into a series of five-week sales cycles. DeBeers had already started reducing its sales during the eighth sales cycle of last year due to declining demand throughout 2023.

There has been no comment from DeBeers on these recent developments.

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