De Beers to cut diamond prices by 10% to drive up sales amid pandemic

26 August 2020 (Last Updated August 26th, 2020 15:00)

The world’s biggest diamond miner, De Beers, has announced that it will cut prices for its largest diamonds by up to 10% in an attempt to rejuvenate the diamond industry, which has struggled during the Covid-19 pandemic.

The news follows significant declines in the miner’s production and sales over the last year. In the six months to July this year, De Beers produced 11.2 million carats of diamonds, down from 15.5 million carats in the prior six months, while total sales almost halved, from 15.5 carats to 8.5 carats, over the period. In addition, the average price per carat sold fell from $151 to $119, and the miner is continuing to cut prices in an attempt to drive up sales volume.

The one silver lining for the diamond industry has been the price of high quality one-carat diamonds, which has increased by 12% since the start of the year. De Beers may be hoping that a cut in prices could help make other qualities of diamonds more financially attractive.