Gaborone, Botswana— De Beers Group has reported a significant decline in rough diamond sales for the fourth sales cycle of the year, with a 21 percent drop compared to the same period last year.
The latest sales totaled $380 million, down from $479 million in the fourth sales cycle of 2023. This also represents a 15 percent decrease from the third sales cycle of 2024, which totaled $446 million.
Year-to-date, De Beers’ sales are now 17 percent lower than last year, amounting to $1.63 billion compared to $1.97 billion in the previous year. The decline comes amid seasonal factors and various challenges, including competition from lab-grown diamonds, geopolitical issues stemming from Russia’s war in Ukraine, and potential changes in corporate ownership.
De Beers CEO Al Cook attributed part of the slowdown to seasonal trends and quieter trading in India due to ongoing general elections, which run through June 1. He also noted that short-term macroeconomic issues are likely to continue impacting natural diamond demand in the U.S.
Despite these challenges, Cook remains optimistic about the future, particularly in the engagement ring market. He anticipates a recovery in engagements as relationships formed post-pandemic mature.
In a strategic move, De Beers announced a collaboration with Signet Jewelers on a marketing campaign targeting “zillennials” (individuals born between the millennial and Gen Z generations) with a focus on promoting natural diamonds. This campaign is set to launch in the third quarter.
“As expected, De Beers’ rough diamond sales in the fourth cycle of the year trended lower, in line with the seasonally slower second quarter and a quieter period of trading in India during the elections,” Cook said. The focus of the global diamond industry now turns towards the JCK jewelry show in Las Vegas at the end of May. Demand trends in the U.S. are expected to be driven by short-term macroeconomic issues but supported in coming years by a recovery in engagements as the after-effects of pandemic lockdowns fade.”
De Beers’ parent company, Anglo American, recently confirmed it is exploring the possibility of divesting the diamond miner as it shifts its focus to “green” energy commodities like copper.
