De Beers cuts diamond prices, axes 25 elite buyers

Giant diamond miner De Beers has made sweeping cuts to its official prices at its first sale since culling nearly a third of its handpicked buyers, a strategy aimed at directing more stones to its strongest customers.

The price reductions mark a sharp break from De Beers’ long-running effort to keep official prices above prevailing market levels to avoid undermining confidence in the diamond industry. 

The Anglo American (LON: AAL) unit introduced the changes during its July sales cycle, the first under new supply contracts that reduced the number of sightholders from about 70 to between 45 and 50.

De Beers’ prices, which had ranged from 5% to 50% above secondary market levels depending on the category of stones, seem to be now much closer to prevailing market prices, according to Bloomberg News. A company spokesperson declined to comment.

The move reflects mounting pressure on the world’s largest diamond producer as weak Chinese luxury demand, the rapid rise of laboratory-grown diamonds and increased flux of roughs from producers such as Angola have fuelled one of the industry’s deepest and longest downturns. 

US tariffs and conflict in the Middle East have added further uncertainty, making it increasingly difficult for De Beers to maintain official prices above the market while quietly offering discounts through private sales.

Strategic reset

The exact size of the reductions remains unclear because De Beers earlier this year switched to one-line invoicing, providing buyers with a single total rather than itemized prices for each box of rough diamonds. The company has also altered the composition of some assortments, making direct comparisons difficult, according to people familiar with the sales.

The price cuts come at a pivotal time for De Beers and parent Anglo American, which has been pursuing a sale of the business since May 2024, after years of disappointing performance.