De Beers amasses biggest diamond stockpile since 2008 financial crisis

LONDON: De Beers Group has amassed a diamond stockpile worth approximately $2 billion, the largest since the 2008 financial crisis, due to weak demand in China, rising competition from lab-grown diamonds, and the lingering effects of the Covid-19 pandemic, reported the Financial Times.

The decline in Chinese demand, which traditionally drives a significant portion of the diamond market, has been compounded by the growing popularity of lab-grown alternatives that are significantly cheaper than natural diamonds. To stabilise the market, De Beers has cut production by about 20 percent compared to last year and reduced prices at recent auctions, said the FT report.

The company reported a decline in revenues to $2.2 billion in the first half of 2024, down from $2.8 billion in the same period last year, amid a prolonged fall in demand since the pandemic. In an effort to revive demand, De Beers has launched a marketing campaign promoting natural diamonds and plans to expand its retail footprint globally, aiming to increase its store network from 40 to 100 outlets.