Editor’s Note
The diamond industry faces a pivotal moment as prices have sharply declined from pandemic highs, according to a recent McKinsey report. This analysis highlights the shifting dynamics and challenges within the sector.
In late November, McKinsey & Company stated that “the diamond industry is at a turning point,” noting that after surging during the pandemic, diamond prices have fallen to their lowest point in recent years.
Citing data from the Italian financial media Pambianconews, 2024 has not been a “brilliant” year for the diamond market: the average price of natural diamonds has fallen by approximately 24%, dropping from about $4,300 per carat in December last year to the current $3,500 per carat.
Recently, Bloomberg cited internal sources stating that De Beers, the world’s largest diamond supplier, has cut prices for most of its diamonds by 10%-15%. Competition from lower-priced lab-grown gems and increasing customer acceptance of lab-grown stones have put pressure on De Beers’ natural diamond market.
