Editor’s Note
The global diamond market is experiencing a significant correction, with prices for both polished and rough stones falling sharply this year. This article examines the scale of the decline and the strategic responses from major industry players.
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 in an attempt to mitigate the price decline.
Statistical data shows that since the beginning of this year, the wholesale price of polished diamonds globally has dropped by about 20%, while the price of uncut diamonds has fallen 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 ninth sales cycle, which ended on November 3.
In September of this year, De Beers’ main competitor, Alrosa, Russia’s largest diamond mining and processing company, took an unprecedented measure by suspending all diamond sales for two months in an effort to prop up prices.
The measures taken by these diamond industry giants have achieved short-term results, with prices for some smaller diamonds rising by about 10% in the past week.
During the COVID-19 pandemic, global diamond sales grew significantly as many consumers purchased 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 at the expense of natural 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.