Editor’s Note
The diamond industry faces a significant shift as De Beers cuts rough diamond prices for the first time in over a year. This move reflects cooling luxury demand, competition from lab-grown alternatives, and a consumer pivot toward gold. The sector is navigating one of its most challenging periods in recent memory.
After more than a year, the international diamond giant De Beers Group has once again lowered the prices of rough diamonds, drawing widespread market attention.
This price reduction is primarily influenced by the cooling global luxury goods consumption market and the increasing popularity of lab-grown diamonds. Meanwhile, gold prices continue to climb, with consumers shifting towards lighter gold jewelry. The diamond industry is facing one of the most severe and prolonged crises in its modern history.
At a diamond auction held on January 19, De Beers Group significantly lowered prices for rough diamonds above 0.75 carats. Insiders noted that the exact scale of the reduction is difficult to calculate because the company no longer prices each box of diamonds individually but instead issues a consolidated invoice for the total selling price. Industry analysts estimate the negotiation range to be around 10%-15%.
De Beers’ price cut stems from falling prices due to declining global diamond demand. The RapNet Diamond Price Index (RAPI) shows that over the past two years, global diamond price trends have exhibited significant structural divergence. Prices for small-carat natural diamonds have plunged by over 30%, while prices for large-carat, high-quality diamonds have been relatively resilient.
Specifically, high-end, large-carat diamonds (above 3 carats) with high color and clarity grades (e.g., D color, IF clarity) have maintained stable or even slightly increased prices due to scarcity and investment demand. In 2025, the RAPI for diamonds above 3 carats fell by only 0.4%. In contrast, small, everyday consumer-grade diamonds like 0.3-0.5 carats, impacted by lab-grown diamond competition and weak demand, saw significant price drops, with 0.5-carat diamonds falling over 20% in 2025.
In fact, the trend of significant declines in both diamond sales and prices has persisted for several years. As early as 2023, certified diamond prices fell by 35% to 40%. In January 2024, De Beers cut rough diamond prices by about 10%, and in December of that year, it lowered prices for rough diamonds sold on the secondary market by 10% to 15%.
A decade ago, Ms. Li from Chengdu spent 100,000 yuan on a one-carat diamond ring. Today, after consulting multiple recyclers, the highest valuation she received was only 30,000 yuan. A woman from Anhui who spent 18,000 yuan on a diamond ring ten years ago shared on social media that she can now only get a 180 yuan recycling price, a depreciation of 99%.
A trader in the jewelry industry told reporters that generally, only large-carat (referring to above one carat) natural diamonds qualify for recycling. But at this point, people realize that the diamonds they bought earlier at high prices are not actually value-preserving. The typical recycling rate is 40%-60% of the original price.
The weakness in the diamond market contrasts sharply with the continuous rise in gold prices. In January 2016, ten years ago, the gold price of Lao Fengxiang was about 290 yuan per gram. By January 20, 2026, it had reached 1,456 yuan per gram, an increase of over 400%.
This is the recent lament of many consumers. If we turn back the clock to 2012, when the gold price was about 338 yuan per gram, spending 18,000 yuan on gold back then could yield over 45,000 yuan today.
Furthermore, increasingly cheaper lab-grown diamonds are severely squeezing the living space of natural diamonds.
The “2025 Lab-Grown Diamond Industry Development Report” shows that by 2030, the market size of lab-grown diamonds in China is expected to exceed 100 billion yuan. According to the report, as of now, the global rough lab-grown diamond production capacity is about 40 million carats, with China’s capacity at about 25.2 million carats, accounting for about 63%. China is the core production force for lab-grown diamonds globally.
In 2025, lab-grown diamonds accounted for over 40% of sales in the global diamond jewelry market, an increase of more than 8 times compared to 2019.
Meanwhile, in recent years, the retail price of lab-grown diamonds has fallen by over 50% from its peak. Today, the price of a 1-carat lab-grown diamond has dropped from 8,000 yuan to 3,500 yuan, less than one-tenth the price of a natural diamond of equivalent quality.
At a store specializing in selling lab-grown diamonds in Nanyang, Henan, the reporter saw a steady stream of consumers coming for inquiries and purchases, mainly young people. The store manager said young people account for about 70%, and sales in 2025 doubled year-on-year.
Staff members stated.
Looking back at history, De Beers, founded in 1888, was once the “creator” of the diamond world. Its turnover once accounted for 90% of the world’s diamond supply market, and it still controls 60% of the world’s rough diamond trade. In 1947, De Beers launched the famous advertising slogan—”A Diamond is Forever.” Diamonds became the preferred choice for engagement rings and maintained high premiums for decades.
However, since peaking in 2022, the diamond industry, one of the symbols of global luxury, has fundamentally shaken. End demand remains persistently weak. In 2025, US polished diamond imports fell 48% year-on-year, indicating insufficient market consumption confidence. High gold prices are pushing consumers towards lighter gold jewelry, further pressuring diamond demand. Additionally, US tariff increases on India, the world’s largest diamond exporter, have added to the industry’s woes.
Facing unprecedented challenges, the diamond industry is seeking a path to transformation. Botswana, Angola, and Namibia have expressed interest in acquiring equity in De Beers, hoping to strengthen their control over the diamond industry.
Compared to the continuously rising gold price, the “eternal value” of diamonds seems to be losing its luster. With African producing countries potentially taking a stake in De Beers, a restructuring of the industry value chain may become a turning point, but short-term pain is still hard to avoid.