De Beers, one of the world’s biggest diamond companies, has found itself in a tough spot. According to the Financial Times, the company has gathered the biggest pile of diamonds it’s had since the 2008 financial crisis. This huge stockpile, worth around $2 billion, is a sign of trouble in the diamond industry.
De Beers controls a large part of the $80 billion diamond market, but things aren’t going well. The company has seen a big drop in sales this year, especially in China, where demand for diamonds has weakened. There’s also more competition from lab-grown diamonds, which are much cheaper than natural diamonds. And let’s not forget the lasting effects of the COVID-19 pandemic, which messed with global marriage rates and, in turn, diamond sales.
De Beers’ CEO, Al Cook, admitted, “It’s been a bad year for rough diamond sales.” To cope, the company has been forced to cut its diamond production by 20% compared to last year. On top of that, it has lowered the prices of diamond...
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