Editor’s Note
The luxury market is witnessing a significant shift as diamond prices face a sharp decline this year. This article explores the factors behind the downturn and the measures major companies are taking to stabilize the market.
Over the past few years, diamonds have been a darling of the luxury market. However, since the beginning of this year, global diamond prices have fallen sharply. In response, several major diamond companies have taken a series of measures in an attempt to alleviate the decline in diamond prices.
According to statistics, since 2023, the wholesale price of polished diamonds globally has fallen by about 20%, while the price of uncut diamonds has dropped by about 35%. To address this situation, the international diamond giant De Beers Group 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 of the year. In September of 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 to support prices.
It is reported that the measures taken by these diamond industry giants have achieved short-term results, with prices at some small-scale diamond auctions rising by about 10% over the past week.
During the COVID-19 pandemic, global diamond sales saw significant growth, with many consumers purchasing jewelry and other luxury goods online. However, after the full reopening of economies, global diamond demand plummeted. Analysis suggests another reason for the drop in diamond prices is the rapid capture of market share from natural diamonds by lab-grown diamonds. According to data from a global jewelry industry analysis firm, the market share of lab-grown diamonds has been continuously increasing since 2021. As of July this year, their market share had reached 49.9%, very close to the 50% threshold.
