De Beers, the industry benchmark for a century, has cut prices again, underscoring how the market that once relied on tight supply and timeless marketing is unraveling. The world’s largest diamond miner announced price reductions at its first major auction of the year, a move that follows cumulative cuts last year and reflects a broad and sustained demand shock across key markets.
Price data show the market splitting into two distinct segments. RapNet’s Diamond Price Index reveals that small, everyday natural diamonds have plunged — some categories down more than 30% over the past two years — while large, high-quality stones above three carats have held up, supported by scarcity and investment demand; RAPI for 3-carat-plus stones is almost flat for the year.
For decades De Beers enforced order on a volatile product through centralized supply management and masterful marketing, most famously the “A Diamond Is Forever” campaign that turned stones into an engagement ritual. That model, however, is under strain: De Beers still dominates rough trade, controlling roughly 60% of the market, but last year it took a dramatic step and trimmed prices by about 25% across two rounds of cuts, and its inventories have swollen to more than $2 billion.
Two disruptive forces are converging. First, laboratory-grown diamonds have multiplied rapidly — output is estimated to have climbed tenfold over six years and wholesale prices have tumbled roughly 90% from peak — offering cheaper, visually similar alternatives that have hollowed out demand for small natural stones. Second, consumer appetite for luxury jewellery in core markets has cooled; finished diamond imports into the United States plunged nearly 48% year-on-year in 2025, while macro factors such as high gold prices have nudged buyers toward lighter-gold jewellery options.
The mechanics of De Beers’ latest adjustment underline the pressure it faces. The company slashed prices on rough stones above 0.75 carats at this week’s auction and moved to issue consolidated invoices rather than pricing per parcel — a change that obscures exact discount levels, though dealers estimate a 10–15% bargaining band. Even after cuts, company prices remain about 20% above prevailing secondary-market levels, and trading terms once seen at De Beers’ auctions have been tightened or withdrawn.
Competitive and geopolitical pressures complicate the picture. Russian and Indian manufacturers have been undercutting prices with more flexible pricing and lower costs, and U.S. tariffs on India's polished-diamond exports have added further strain to the global trade. At the same time, producer countries are pressing for a larger slice of value: Botswana, Angola and Namibia have all signalled interest in buying stakes in De Beers as Anglo American moves to divest most of its holding; Botswana already owns 15% and is pursuing majority control to safeguard a critical fiscal resource.
The industry faces a crucible of supply-side fragmentation, technological substitution and rising producer assertiveness. De Beers’ price cuts are not just tactical — they represent an admission that the old levers of supply discipline and brand-driven scarcity are less effective in the face of new competitors, changing consumer tastes and a more politicised ownership landscape.