De Beers Slashes Diamond Prices Amid Prolonged Industry Downturn

De Beers has implemented some of the largest reductions ever to its official diamond prices, signaling a possible shift in its long-standing strategy of supporting prices above prevailing market levels.

De Beers has implemented some of its largest-ever official diamond price reductions amid a prolonged slowdown in global demand.

According to Thomas Biesheuvel of Bloomberg News, the cuts were introduced during the company's first sales event after reducing the number of its authorized buyers, a move intended to strengthen relationships with its largest customers.

The global diamond industry has faced prolonged weakness as slowing luxury spending in China and growing consumer acceptance of lab-grown diamonds have weighed on demand.

Historically, De Beers has avoided cutting official prices because of its significant influence on the global diamond market. Instead, it often offered discounts through private sales while maintaining higher published prices.

That strategy changed this week as the company reduced official prices across nearly all categories of diamonds it sells.

The price reductions could reshape the global diamond market by bringing De Beers' official pricing more closely in line with prevailing market conditions.