Diamond company cuts prices this month amid difficult economy, lab-grown demand
De Beers has reportedly cut prices for its diamonds.
Bloomberg reported Monday on the price cuts that unnamed sources told the outlet the diamond miner and seller had applied to their initial sale of the gems to sightholders for the year. With the move, they reportedly sought to drum up more sales activity.
De Beers put gems within the 2-4 carat "select makeables" category of diamonds up for sale at prices 25% lower, according to Bloomberg. That reportedly represented the most sizable cut.
The company’s price reductions across its various categories amounted to 10% this month, the outlet reported.
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Factors like the economy and lab-grown diamond demand reportedly contributed to the diamond market experiencing some difficulties last year. Lab-grown diamonds, which tend to be cheaper than natural ones, have particularly affected "select makeables," according to Bloomberg.
De Beers completed the 10th and last of its rough diamond sales cycles for 2023 in December. (Credit: Alex Tai / SOPA Images / LightRocket / File / Getty Images)
Chinese consumers dealing with economic challenges also played a role in the diamond market.
FOX Business reached out to De Beers for comment on the Bloomberg report.
The company completed the 10th and last of its rough diamond sales cycles for 2023 in December. It said the value of those sales in cycle 10 provisionally came in at $130 million.
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"In the final sales cycle of 2023, De Beers continued to offer lower levels of rough diamond supply, in line with current demand," De Beers CEO Al Cook said in a statement at the time. "As the end-of-year holiday season progresses, we are seeing signs that the diamond industry is regaining its balance between wholesale supply and demand. Polished diamond prices look to have [stabilized] as inventory levels have decreased, though we expect improvements in rough diamond trading conditions to be gradual."
The cost of natural rough diamonds, as measured by the Zimnisky Global Rough Diamond Price Index, sat 13.6% lower than a year ago but 2.7% higher than three months ago as of last week.