The Strategist

De Beers raises prices for diamonds amid strong demand

01/18/2022 - 07:42

International diamond corporation De Beers has markedly increased prices for diamonds due to strong demand, with small stones seeing the biggest increases, sources familiar with the situation told Bloomberg.

Consumer demand for diamond jewelry showed a marked increase last year while supplies were limited, the agency noted. De Beers was raising diamond prices for much of 2021, and while at that time the increases mostly affected larger and more expensive stones, the focus has now shifted.

"De Beers raised prices by about 8% in its first auction of the year... The biggest increases were in smaller and cheaper stones," the agency said. It said the price hike was one of the most aggressive in recent years.

The agency's sources specify that prices have gone up by around 5% for larger diamonds and by 20% for some smaller stones. A spokesman for De Beers declined to comment to the agency.

De Beers International Corporation mines, processes and sells natural diamonds, as well as produces synthetic diamonds for industrial use. It was founded in 1888 in South Africa.