De Beers Initiates Largest Price Cut in History: Is There a Bottom for Diamond Prices?

According to reports from Wall Street News, De Beers, the world’s largest diamond producer, has implemented a large-scale price reduction due to a sharp drop in rough diamond prices.
Bloomberg reported that the price of rough diamonds sold by De Beers in the secondary market (i.e., the diamond circulation market) has fallen by 10% to 15%. This price cut is the first of the year and one of the largest reductions in history.
The backdrop of this price reduction is the plummeting price of rough diamonds and declining market demand, particularly the widespread adoption of lab-grown diamonds, which has reduced demand for natural diamonds. Technological advancements have enabled lab-grown diamonds to approach the quality of natural diamonds at a lower price, attracting more consumers, especially in everyday jewelry consumption, thereby eroding the market share of natural diamonds.
Simultaneously with De Beers’ price cut announcement, the Diamond Standard Index, which reflects the overall performance of the diamond market, has also fallen to its lowest level since early 2022, further confirming the difficulties faced by the diamond market.

Analysis points out that De Beers typically views significant price cuts as a “last resort” to respond to market changes. Although the company keeps prices confidential, the comprehensive price reduction this month is quite substantial, revealing its urgent attitude in the face of market difficulties. This also indicates that, as an industry giant, De Beers has been unable to effectively support diamond prices under market downward pressure.
From a background perspective, De Beers’ owner, Anglo American, which earlier this year fended off a $49 billion takeover bid by BHP Group, is seeking to exit the business. Informed sources indicate that even after the significant price cut, De Beers’ diamonds remain more expensive than the prevailing prices in the secondary market.

In the jewelry market, diamonds have always occupied a very special position. However, De Beers’ recent move to initiate the largest price cut in history has sent shockwaves through the industry, leading many to question: Is there a bottom for diamond prices?
First, since last year, the diamond market has shown a clear downward trend, and De Beers, as a giant in the diamond industry, has been the first to bear the brunt of market fluctuations. For a long time, De Beers, with its high degree of monopoly over diamond resources, has to some extent controlled the price direction of diamonds. However, changes in the market environment are relentless, and the once seemingly unbreakable diamond market structure is gradually disintegrating.

In the past, De Beers maintained high prices by controlling the supply of diamonds, creating a market illusion of diamond scarcity. For example, its famous marketing slogan, “A Diamond is Forever,” successfully linked diamonds with beautiful emotions like love and eternity, making consumers willing to pay a high premium for this emotional value. However, with changes in the global economic landscape, consumer attitudes have gradually become more rational. Faced with economic pressures, people have begun to re-evaluate non-essential high-value expenditures. As a luxury item, the market demand for diamonds has naturally been suppressed.
Second, diamonds have long been regarded as precious and rare gemstones, symbols of eternal love, holding an unshakable position especially in the wedding market. However, in recent years, with the development of science and technology, people have begun to re-examine this monatomic crystal composed of carbon from a chemical composition perspective. In fact, natural diamonds are just one form of crystallization formed under specific conditions, not a unique existence. Meanwhile, advancements in lab-grown diamond technology have made high-quality synthetic diamonds increasingly accessible at a cost far lower than that of natural diamonds.

Especially in the eyes of the younger generation, the traditional notion of “scarcity” is no longer a key factor in choosing jewelry. They pay more attention to product personalization, environmental attributes, and cost-effectiveness. Therefore, even in terms of emotional value, the status of natural diamonds is beginning to be challenged. Furthermore, the popularity of social media and internet platforms has made information more transparent, allowing consumers to more easily access knowledge about various types of diamonds and make more rational purchasing decisions.
Third, for De Beers, this significant price cut is undoubtedly a difficult choice. On one hand, failing to respond promptly could lead to greater financial pressure or even a survival crisis for the company. On the other hand, over-reliance on price wars to compete for market share could also damage the brand’s long-accumulated image and reputation. After all, for over a century, De Beers has shaped a romantic myth around “A Diamond is Forever” through advertising and marketing, an image deeply ingrained in people’s minds. Now, breaking this entrenched perception and shifting to a more pragmatic pricing strategy indeed requires great courage and wisdom.

Fourth, the reshaping of diamond value is not just an adjustment in price but a comprehensive transformation in consumer perception, market positioning, and industry ecology. From the perspective of consumer cognition, diamonds are no longer a simple high-value, high-scarcity luxury item but a commodity with multiple attributes. When purchasing diamonds, consumers will pay more attention to factors such as cost-effectiveness, design, and the cultural connotations behind the brand.
Therefore, with De Beers initiating its largest price cut, the bottom line for diamond prices has become more difficult to determine. With continuous changes in the market environment, shifts in consumer perception, and intensifying industry competition, diamond prices will continue to undergo dynamic adjustments. In the future, the diamond market may gradually form a new price system and market structure during this process of value reshaping.