De Beers Holds Largest Diamond Inventory Since 2008

According to the Financial Times, De Beers, a major diamond manufacturer, has built its largest diamond inventory since the 2008 financial crisis, with a stockpile valued at around $2 billion.

In a recent interview, CEO Al Cook acknowledged the challenges the company faces, saying: “It’s been a tough year for rough diamond sales.” Contributing factors include the slowdown in China’s economy and the growing prevalence of affordable synthetic diamonds, which have led to a drop in demand.

Cook said De Beers has strategically increased its reserves in anticipation of a future recovery in diamond prices. However, as of the end of 2024, that recovery has yet to materialize and first-half sales are down around 20% from a year earlier.

Despite these obstacles, Cook remains optimistic about the company’s future and emphasizes the need to refocus on marketing initiatives: “As we move toward greater independence, we can focus on marketing initiatives just as intensely as we have on mining operations.”

In addition, a recent McKinsey report suggests that synthetic diamonds could eventually eclipse the market for natural diamonds. Earlier this year, De Beers’ parent company Anglo American announced plans to spin off its diamond business through a sale or IPO, marking a significant strategic shift for the organization.

Image Source: Mining.com