De Beers Cuts Official Diamond Prices After Year-Long Standoff

This article first appeared on GuruFocus.

De Beers has moved to cut its official diamond prices for the first time in more than a year, according to people familiar with the matter, signalling a possible turning point after a prolonged effort to defend pricing amid weak demand. The decision comes as the global diamond market continues to struggle with a sharp pullback in Chinese luxury spending, the rising appeal of synthetic stones, and additional pressure from US tariffs on India, the world's largest diamond exporter. Given De Beers' outsized role in setting market benchmarks, the company has historically avoided formal price cuts, opting instead to sell discounted stones quietly while keeping official prices significantly above prevailing market levels for some categories.

At the first regular sale of the year on Monday, De Beers is understood to have implemented deep price reductions on rough diamonds larger than three quarters of a carat as it sought to bring pricing closer to market realities. The full scale of the cuts was not immediately clear, as the company introduced one-line invoicing that lists a single total rather than itemised box prices, while also adjusting the assortment within some boxes, making direct comparisons difficult. At these sales, De Beers typically sets prices and indicates expected purchase volumes for its customers, known as sightholders, with refusals potentially affecting future access to supply, which may add to the significance of the shift.

The timing could be particularly challenging given the broader backdrop facing the industry. De Beers last cut prices in December 2024, and the latest move follows a period when the market had been showing tentative signs of stabilisation before renewed disruption linked to US President Donald Trump's trade war. In August, Trump placed 50% tariffs on India, where around 90% of diamonds are traded, cut or polished, even as the US remains the world's largest diamond consumer. For De Beers' owner, Anglo American Plc, the pressure may be intensifying as the miner looks to exit the diamond business as part of a wider restructuring after fending off a $49 billion bid from BHP Group (NYSE:BHP) in 2024.