De Beers reduces diamond prices by 10% to improve demand
Additionally, in its last two sales of 2023, the group allowed its customers to refuse all gems they were contracted to buy in the year
De Beers has reportedly cut its diamond prices by 10% to increase demand and revive gem sales, Bloomberg has reported.
The hefty price reductions come as competition from lab-grown diamonds increased.
The industry nearly came to a halt last year as the two largest miners virtually stopped producing in an effort to stop a price crash and help the market pick up a bit.
People familiar with the matter told Bloomberg that the price cut was made across the board at its first sale of the year, and that the group has made bigger cuts for some larger stones, with the “select makeables” category being lowered about 25%.
“Select makeables,” are high-quality but imperfect 2-4 carat diamonds that may be cut into smaller polished stones for use in bridal bands.
According to the sources, De Beers has already drastically slashed prices within this category last year. They also stated that these gems were affected by the growing popularity of synthetic diamonds, the price of which has fallen.
Additionally, in its last two sales of 2023, the group allowed its customers to refuse all gems they were contracted to buy in the year.
However, sources told Bloomberg that De Beers is no longer allowing its customers to reject its stones.
Bloomberg stated that the last time the company made such price cuts was at the end of 2019 when the company was grappling with too much stock in the wake of the pandemic.
Jewellery Focus has contacted De Beers for comment.
