Editor’s Note
The global diamond market is experiencing a significant correction, with wholesale prices for both polished and rough stones falling sharply this year. This report examines the market pressures and the strategic responses from major industry players.
(Hong Kong, 14th) Diamonds have been a darling of the luxury market in recent years, but global diamond prices have fallen sharply this year. In response, several major diamond companies have taken a series of actions to try to mitigate the price decline.
According to reports, statistical data shows that since the beginning of this year, the wholesale price of polished diamonds globally has fallen by about 20%, while the price of uncut diamonds has dropped by approximately 35%.
To address the situation, international diamond giant De Beers previously announced that it would continue to reduce the supply of rough diamonds during the month ending November 3rd, which is the 9th sales cycle.
In September this year, De Beers’ main competitor, Russia’s largest diamond mining and processing company Alrosa, took an unprecedented measure by suspending all diamond sales for two months in an effort to support prices.
These measures by the diamond industry giants have achieved short-term results, with prices at some small-scale diamond auctions rising by about 10% in the past week.
During the COVID-19 pandemic, global diamond sales grew significantly, with many consumers purchasing luxury items like jewelry online. However, after the full economic reopening, global diamond demand plummeted.
Another reason for the decline in diamond prices is the rapid market capture by lab-grown diamonds. Data from global jewelry industry analysis institutions shows that the market share of lab-grown diamonds has been increasing since 2021, reaching 49.9% as of July this year.