Diamond Retailer De Beers Cuts Prices as Lab-Grown Gems Dominate

Diamond retailer De Beers has recently cut prices due to a significant drop in sales. This trend is driven by frugal would-be spouses who are increasingly choosing less expensive, lab-grown diamonds over their natural counterparts.

De Beers reduced the price of some of its larger, mined diamonds by up to 25%, with a particular focus on a category referred to as “select makeables.” These are large diamonds, weighing between 2 and 4 carats, which can be cut into smaller, polished stones typically used in high-quality bridal rings.

In 2023, the company allowed customers to refuse any diamonds they were contracted to buy due to weak demand and surplus stock following the pandemic. But this policy has been discontinued.

Public confidence in the diamond-mining market, especially in China, has also taken a battering. This slump is largely due to the country’s ongoing property crisis, a fallout of their continued adherence to a zero-COVID policy, which added to the government and residents’ debt burdens. These factors, coupled with the rise of lab-grown diamonds, have collectively led to the decision by the diamond industry to cut supply.

Other industry players are also making serious moves in response to the shifting landscape. Alrosa PJSC, a diamond miner, manufacturer, and retailer from Russia — a recent key player in the diamond market — halted all sales for two months in an attempt to recover plummeting prices. Similarly, India’s diamond industry leaders took a bold step by voluntarily suspending rough diamond imports for two months.

These actions aimed to manage the apparent oversupply of both rough and polished gems, in hopes of stabilizing prices and rebuilding confidence in the diamond industry. The industry is making concerted efforts to weather these turbulent market dynamics and adapt to the rising popularity and acceptance of lab-grown diamonds.