钻石行业一度是受益于新冠疫情的最大赢家之一，因为居家消费者购买了大量钻石珠宝和其他奢侈品。然而，随着全球经济走向开放，对钻石的需求迅速降温，导致业内持有过多的库存。① According to media reports, international diamond giant De Beers completely cut diamond prices by more than 10% and abandoned setting a price bottom line; ② De Beers was a monopoly giant in the diamond industry and now supplies about 40% of the world's natural diamonds, but the industry is experiencing the worst decline in decades; ③ high inflation dampens consumers' desire to buy, nurtures the rise of diamonds and weakens natural diamond prices. De Beers cut prices sharply for the first time since the beginning of the year.
Financial Services Association, December 2 (Editor: Zhao Hao) According to media reports, international diamond giant De Beers (De Beers) has cut diamond prices by more than 10% across the board. This means that the world's largest supplier of natural diamonds has given up on attempts to set a price floor.
De Beers has always been a monopolist in the diamond industry. It controlled 80% of the world's diamond production in the 80s of the last century, and still supplies about 40% of the world's natural diamonds. The report said that the diamond industry experienced its worst and longest recession in decades.
The diamond industry was once one of the biggest winners to benefit from the COVID-19 pandemic, as consumers at home bought lots of diamond jewellery and other luxury goods. However, as the global economy opened up, demand for diamonds rapidly cooled, causing the industry to hold too many stocks.
High inflation has also dampened consumers' desire to buy. As diamond prices fall, the point of investing in diamonds to fight inflation has largely disappeared. Furthermore, the rise of cultivated diamonds continues to weaken the price of natural diamonds.
Previously, De Beers tried to keep the price of rough diamonds stable in the secondary market (traders and manufacturers bought from each other), but prices have been falling.
People familiar with the matter revealed that De Beers abandoned this position during the last sale of the year on Monday, cutting the prices of most of the products it sells by 10% to 15%. If true, this is the first sharp price cut since the beginning of the year.
De Beers has considerable influence in the rough diamond market. The company holds 10 sales events every year, and buyers usually accept the price and quantity offered by De Beers. People familiar with the matter said that even if the company implemented a price reduction this time, it would still be more expensive than the current price in the secondary market.
Currently, De Beers is facing difficult times. Earlier in the year, its parent company, Anglo-American Resources Group, rejected BHP Billiton's $49 billion takeover offer and announced that it was seeking significant simplification and contraction of operations.
British American Resources said last month that it is considering further diamond production cuts as the industry is being dragged down by weak demand and oversupply, and plans to sell or divest De Beers.
