Gaborone, Botswana—De Beers Group has shown signs of improvement in its rough diamond sales during the initial round of sales for 2024, partly bolstered by robust U.S. diamond jewelry sales over the holiday season.
Total sales amounted to $370 million, representing a decrease of approximately 19 percent from the first sales cycle of 2023, which recorded $454 million. However, this figure marks a notable upturn from the previous year’s end when sales were only $137 million.
CEO Al Cook attributed this improvement to the solid consumer demand for diamonds observed in the United States during the year-end holiday period. He stated, “Solid consumer demand for diamonds in the United States over the year-end holiday season has certainly helped to stabilize the industry and we are seeing polished diamond prices increasing again.” Cook also noted the resurgence in demand for rough diamonds, particularly with the resumption of rough diamond imports into India.
After a prosperous year in 2022, De Beers’ rough diamond sales encountered challenges in the spring of 2023 as natural diamond demand tapered off from pandemic-induced highs, and lab-grown diamonds gained traction in the market. Midstream players found themselves grappling with excess inventory amid declining polished diamond prices.
By the autumn, De Beers took decisive action to curtail sales, canceling the remaining online auctions for the year and providing sightholders with the flexibility to adjust their purchases according to their needs.
In September, leaders in the Indian diamond industry proposed a two-month moratorium on rough diamond imports, commencing on October 15 and concluding in mid-December.
De Beers concluded 2023 with total sales amounting to $3.63 billion, reflecting a 37 percent decline from the previous year.
Looking ahead to 2024, CEO Al Cook characterized the environment as “uncertain,” emphasizing the potential impact of economic uncertainties on the recovery of rough diamond demand. He remarked, “As the prospects for economic growth in many major economies remain uncertain, we expect that it may take some time for rough diamond demand to fully recover.”
