De Beers dropped rough diamond prices by 10%-15% at their most recent sight, marking the company’s first significant pricing adjustment of the year. Bloomberg described the decision as a “historically large reduction,” which differed from De Beers‘ usual strategy of offering consumers flexibility or the opportunity to refuse goods rather than cutting costs completely.
Market analyst Paul Zimnisky ascribed the price decreases to parent company Anglo American’s continued efforts to sell De Beers, but questioned their timing. “The polished market was just starting to show signs of stabilizing, and sentiment was healing,” he said. He voiced fear that the decision will jeopardize work toward stabilizing polished diamond prices and reduce manufacturing margins.
An anonymous industry insider described the price cut as “a sign of desperation” with potentially far-reaching ramifications. “This move diminishes the value of everyone’s inventory just ahead of the critical holiday season,” a source told me. The source further stated that, while natural diamond prices have gradually declined since COVID-19, they have not fallen as precipitously as lab-grown diamond prices, and De Beers‘ activities risk undermining the value proposition of natural diamonds.
According to sources, De Beers plans to enforce its 2021 contract rule forcing sightholders to acquire at least $15 million in items yearly. Failure to attain this criterion in 2024 will force sightholders to make ad hoc purchases in 2025, with no assured supply under “intentions to offer” (ITOs).
While De Beers has not made an official statement on the price decreases or the ITO process, spokesperson David Johnson has acknowledged indicators of price stability in polished diamonds and reduced midstream inventories. He characterized it as “a platform for greater equilibrium and growth as polishing operations prepare to reopen following the extended Diwali break.”
Engagements with sightholders about 2025 ITOs are anticipated for the next weeks, with the company’s new sightholder contracts going into effect in 2026. De Beers CEO Al Cook, addressing at a diamond convention in Antwerp, hinted at a strategic change toward fewer but more closely connected shareholders.
Industry Outlook
As the diamond industry considers the ramifications of De Beers‘ decision, market participants are keenly monitoring the impact on polished diamond pricing, manufacturer profitability, and the competitive positioning of natural diamonds versus lab-grown alternatives. With the holiday season approaching, all supply chain stakeholders face high stakes.