De Beers has accumulated its largest stockpile of diamonds since the 2008 global financial crisis, reflecting the group’s challenge in stimulating demand for jewellery long seen as the pinnacle of luxury.
The Financial Times reports that a drop in Chinese demand, increasing competition from lab-grown diamonds and the legacy of pandemic lockdowns, when the number of marriages fell, left De Beers with inventory worth about $2 billion.
“It’s been a bad year for rough diamond sales,” De Beers chief executive Al Cook was quoted as saying.
The protracted decline in demand that started with the COVID-19 pandemic has forced De Beers to take measures to curb the supply of the precious stones.
It reduced production from its mines by about 20% from 2023’s levels and cut prices at its most recent auction.
De Beers’ revenues dropped to $2.2 billion in the first half of 2024, from $2.8 billion a year earlier.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
