Diamond giant De Beers has slashed the price of its precious solitaires as sales plummet as bargain-hunting fiancés increasingly opt for cheaper lab-grown gemstones.
Prices for certain categories of larger De Beers mined diamonds have been reduced by up to 25%. bloombergsaid a person familiar with the matter.
The category, called “Select Makeables,” includes large stones from 2 to 4 carats that can be cut into smaller polished stones used in high-quality bridal rings, the newspaper reported.
Prices in this category had already fallen significantly last year, as these mined gemstones took the biggest hit when synthetic options became mainstream, sources told Bloomberg.
De Beers jewelry was discounted by 10% across the board in the first sale of the year, which typically reflects the largest price reduction, people told Bloomberg.
According to Bloomberg, the London-based diamond company will sell all the jewelry customers have signed up to buy for the year during two sales periods in 2023 to combat weak demand and overstock in the wake of the pandemic. It is said that he was allowed to refuse.
But De Beers will no longer allow customers to reject its stones, people familiar with the matter told Bloomberg.
Representatives for De Beers did not immediately respond to The Post's request for comment.
The price cuts have come as natural diamonds are losing market share to lab-grown diamonds, which are nearly impossible to tell apart with the naked eye.
According to the London-based jeweler, lab diamonds are typically 60% to 85% cheaper than mined diamonds because they are more efficient and cost-effective than the painstaking process of extracting gemstones from hundreds of miles of the earth's crust. % cheaper. queen smith.
For reference, the average 1-carat lab diamond costs about $1,290, while the same weight of a mined diamond costs about $10,000, according to Queensmith.
Consumer confidence in China, a major diamond mining market, has also waned after it suffered an asset crisis caused by the country's long-term zero-corona policy, which took a heavy toll on government and population debt.
Taken together, these factors leave the industry with little choice but to curb supply, Bloomberg reported.
Russian diamond mining company, manufacturer and retailer Alrosa PJSC, which has recently emerged as a top diamond market leader, suspended all sales for two months in September to recover plummeting prices, according to Bloomberg. did.
A month later, India's diamond industry leaders voluntarily suspended imports of rough diamonds for two months.
Vipul Shah, chairman of India's industry umbrella body Gem and Jewelery Export Promotion Council, said at the time that the temporary import ban was due to the current oversupply of rough and polished gemstones, according to the jewelery trading site. The aim is to wipe out the. JCK online.
“We have to do what is right for the industry as a whole. Prices for both rough and polished stones are falling. According to JCK, if we all come together and take action to stop prices from falling, It will increase confidence across the industry,” Shah said.
