Diamond industry faces its deepest crisis

THE global diamond industry is in its deepest crisis in modern history, battered by collapsing Chinese demand, the rapid rise of lab-grown stones, US tariffs and record gold prices that are diverting luxury spending away from gems, said Bloomberg News.Natural diamond prices have fallen more than 40% from their pandemic peak, with polished stones also tumbling sharply, said the newswire.In India — where nine out of every ten diamonds are cut and polished — export demand has fallen to a two-decade low. The Surat Diamond Bourse, a $350m complex built to house thousands of traders, has only 250 of its 4,700 offices operational since opening in 2023, it said.De Beers, the industry’s dominant force for more than a century, lost nearly $1.5m a day last year. Parent company Anglo American has written down the business three times in as many years, slashing its book value to $2.3bn from $9.1bn, and is now seeking a buyer.Lab-grown diamonds — chemically identical to mined stones but sold at steep discounts — featured in nearly half of US engagement rings between January and August 2025. Factories across Surat are adding synthetic production lines, acknowledging the structural shift.There are tentative signs of stabilisation. De Beers raised prices for stones above five carats by more than 5% at its February sale as supplies in some categories tightened. But analysts are sceptical of a sustained recovery, said Bloomberg.“Natural diamonds cannot win in a situation where it’s all about the cheapest price,” said Paul Zimnisky, an independent market analyst.The post Diamond industry faces its deepest crisis appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com