09/10/2023
Jaw Dropping Diamond Price Drop
De Beers, a unit of Anglo American Plc, faced a challenging first half of the year, witnessing a sharp drop in profits by over 60% to $347 million. Their average diamond selling price also declined from $213 per carat to $163 per carat, and their August diamond sale hit a yearly low.
To adapt to the situation, De Beers allowed buyers to defer up to 50% of purchases for diamonds larger than 1 carat for the rest of the year.
While lab-grown diamonds are impacting the demand for natural stones, the lab-grown industry is also struggling. Synthetic diamond prices have plummeted even more steeply than natural diamonds, with discounts now reaching up to 80%.
De Beers began selling its own lab-grown diamonds in 2018 at a significant discount compared to natural diamonds, aiming to distinguish between the two categories. They anticipate further price drops for lab-grown diamonds due to increased supply, creating a larger price gap between natural and lab-grown stones.
This surge in lab-grown supply is expected to make lab-grown diamonds significantly cheaper, potentially no longer competing with natural diamonds for bridal purposes. Ultimately, De Beers emphasizes that natural diamonds retain their allure due to their rarity and uniqueness.
