De Beers faces record diamond inventory since 2008

As the mid-market struggles, De Beers Group has accumulated its largest diamond stockpile since the financial crisis in 2008, due to the persistent challenges in the luxury gemstone market. Throughout 2024, De Beers has maintained inventory levels of approximately $2 billion, indicating weakened global demand, as per a Financial Times report.

Sluggish sales in China, increasing competition from lab-grown diamonds, low number of marriages and the lasting effects of the COVID-19 pandemic are the key factors for the current sluggish situation.

In response to declining demand, the company has scaled back production by around 20 per cent compared to the previous year and lowered prices during its latest rough diamond auction. De Beers’ measures aim to navigate a challenging period for the $80 billion diamond jewellery industry as it adapts to evolving market dynamics.