What's behind the diamond downturn?
Diamond prices have dropped significantly from their pandemic-era peaks, leading industry giant De Beers to suspend production at its largest South African mine. Analysts attribute the downturn to a combination of inflation, shifting consumer demand, and the rise of lab-grown diamonds.
Why it matters
The decline in natural diamond prices reflects broader shifts in luxury goods markets and the disruptive impact of synthetic alternatives on traditional mining economies.
By some measures, diamond prices have been cut in half since a peak during the pandemic.
Listen Now Save Share Download Diamond industry giant De Beers announced earlier this month that it would be halting operations for two years at South Africa's largest diamond mine. Bruno Vincent/Getty Images The legendary diamond mining company De Beers announced earlier this month that it's suspending production at South Africa's biggest diamond mine for two years, and making cuts to its official prices.
Paul Zimnisky is a diamond industry analyst, and he runs a widely followed price index for the commodity.
That Zimnisky diamond index had global rough diamond prices down 20% year over year and 40% from a decade ago. That's just for natural diamonds — not the increasingly popular lab-grown diamond category.
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