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De Beers Cuts Diamond Prices by Over 10% Amid Slump December 04, 2024 (0 comments)
New York NY--De Beers has reduced diamond prices by 10% to 15% at its final 2024 sale, marking its first major price cut this year. According to Bloomberg (via Mining Weekly), the move comes after months of resisting price drops during a prolonged industry downturn.
[Image via istockphoto.com]
The diamond market has faced declining demand due to inflation, weak consumer spending, and a slowdown in China’s luxury sector. Synthetic diamonds have also pressured natural diamond prices.
De Beers initially offered buyers, known as sightholders, flexibility to refuse goods rather than lowering prices. However, this month’s across-the-board cuts also included tighter terms for buyers. Even after the reductions, Bloomberg noted that De Beers’ diamonds remain priced above secondary market rates.
The slump coincides with restructuring efforts by De Beers’ parent company, Anglo American, which is considering exiting the diamond business after rebuffing a $49-billion takeover bid from BHP Group earlier this year.
De Beers declined to comment on the price cuts, which Bloomberg described as a significant shift reflecting ongoing market pressures.
Read more in the report here.