De Beers, a major diamond mining company, has reported that natural-diamond prices have stabilized and begun to rise after years of decline. According to Al Cook, De Beers' chief executive, the price of diamonds has started to grow in recent months. Cook attributed the shift to stronger demand in the United States and India, alongside shrinking supply as aging mines close and companies limit investment in new projects.
The diamond industry has faced significant challenges in recent years, including weak Chinese demand, excess inventories, economic uncertainty, and growing competition from cheaper laboratory-grown diamonds. However, De Beers believes that scarcity will help persuade younger consumers that a natural diamond is still worth its price. Cook estimated that supply was falling by more than 10 percent as mines age and commercially viable discoveries become harder to find.
Developing a major mine takes years, requires enormous investment, and offers uncertain returns. De Beers has suspended new development at Gahcho Kué in Canada, underscoring the limited pipeline of new production. The United States remains the largest market for diamond jewelry, while India is gaining importance as its middle and affluent classes grow. Natural-diamond demand in India has reportedly risen about 11 percent over the past year.
Despite the positive trend, stabilization is not the same as recovery. In the first half of 2026, De Beers' average realized rough-diamond price fell 32 percent from a year earlier, from $155 to $105 a carat. The decline reflected both continued price weakness and the mix of diamonds sold. Even a modest increase would leave prices well below recent peaks.
The downturn has spread throughout the supply chain, affecting jewelers, dealers, cutters, and miners. Laboratory-grown diamonds remain a major threat, as they are chemically and physically diamonds but can be produced within weeks. Falling manufacturing costs allow consumers to buy larger stones for less, and analyst Paul Zimnisky expects laboratory-grown jewelry sales to keep expanding at double-digit annual rates.
De Beers has responded by emphasizing the differences between mined and manufactured stones, presenting natural diamonds as finite objects with traceable origins, long histories, and better prospects for retaining value. Cook carried that message to China, telling China Global Television Network that natural diamonds should be seen not only as luxury goods but also as objects capable of holding value.
The industry is also focusing on sustainability and transparency, with the Beijing Declaration on Natural Diamonds and Sustainable Development signed on Sept. 15. The agreement brought together the Shanghai Diamond Exchange, Botswana, Namibia, South Africa, and major industry participants, calling for closer cooperation across the supply chain while emphasizing sustainability, transparency, and the economic contribution of diamond mining.
Key points
- De Beers reports that natural-diamond prices have stabilized and begun to rise after years of decline.
- The diamond industry faces challenges from weak Chinese demand, excess inventories, and growing competition from laboratory-grown diamonds.
- De Beers emphasizes the differences between mined and manufactured stones, highlighting the value and scarcity of natural diamonds.
