daniel chigunwe
De Beers made one of the steepest cuts to its diamond prices in years as the world’s top producer tries to revive gem sales after the market ground to a halt.
The industry almost came to a complete standstill in the second half of 2023 as the two biggest miners all but stopped supplies in a desperate attempt to stem a collapse in prices. While those efforts helped the market to pick up a bit, it’s unclear how much appetite trade buyers currently have.
To improve demand, De Beers cut prices by about 10 percent across the board at its first sale of this year — traditionally one of the largest — according to people familiar with the matter. The one-time monopoly made bigger cuts for some larger stones, with one category being lowered by about 25 percent, said the people, who asked not to be identified because the details are private.
The industry has been whipsawed since the start of the pandemic. It was one of the great winners as stuck-at-home shoppers turned to diamond jewellery and other luxury purchases.
But demand quickly faded as economies reopened, leaving many in the trade holding excess stock that they’d paid too much for.
The cooldown rapidly escalated as the crucial US market wobbled under rising inflation. In addition, consumer confidence in key growth market China was hurt by a property crisis, while competition from lab-grown diamonds increased.
That left the industry with little choice but to curb supply. — Bloomberg.
Online Reporter