Steep Rise in De Beers Rough Production

 

De Beers says rough diamond production increased by 17% in the first three months of 2026, to 7.1 million carats.

The increase was largely driven by the release of stockpiled ore at Gahcho Kue, in Canada, (up 163%) and higher underground volumes at Venetia in South Africa (up 53%).

The loss-making miner said, however, that trading conditions remained “challenged” due to ongoing industry, geopolitical and tariff headwinds.

Rough sales at the two sights held during the quarter saw revenue rise, year-on-year by almost 25% to $648 million, although average per carat prices fell 19% to $101.

Production guidance for 2026 remains unchanged at 21-26 million carats, the company said in its Production Report for the First Quarter of 2026, published on 28 April.  

Actual rough production was 24.7 million carats in 2024 and 21.7 million carats in 2025.

Botswana, which accounts for more than two thirds of all De Beers’ diamonds, saw production rise by 5% year-on-year during Q1 2026.

There was a 12% drop in Namibia, due to scheduled maintenance on two vessels at Debmarine Namibia and the of decommissioning two vessels.

There was 53% production rise in South Africa, largely due to increased processing of underground ore from Venetia, and a 163% increase in Canada due to the planned release of ore from a new area of Gahcho Kue.

Source: DCLA

Rough Diamond Jewellery Gains Momentum in the UK and USA

 

A clear shift is underway across the jewellery markets in the United Kingdom and the United States, where demand for rough, uncut diamond jewellery continues to accelerate. Against a backdrop of geopolitical tension and economic uncertainty, consumers are increasingly drawn to pieces that represent authenticity, individuality, and a deeper connection to natural origins.

Unlike traditional polished stones, rough diamonds present an organic, untouched aesthetic each one inherently unique. This raw beauty is resonating strongly with a new generation of buyers who prioritise personal expression over conventional notions of perfection. In this segment, irregularity is not a flaw, but a defining feature of value.

The momentum behind this trend has been amplified by the expansion of the De Beers Talisman collection. By pairing rough and polished diamonds in innovative designs, the collection has successfully repositioned rough stones within high jewellery bridging traditional craftsmanship with contemporary design language and attracting both collectors and design-led consumers.

From a broader market perspective, the rise of rough diamond jewellery reflects a growing preference for tangible, meaningful assets. In uncertain times, buyers are seeking rarity, permanence, and intrinsic value qualities naturally embodied by diamonds in their most authentic form.

For the trade, this evolution presents both opportunity and responsibility. Educating consumers on the characteristics, formation, and grading complexities of rough diamonds remains critical, alongside maintaining transparency and provenance areas where DCLA continues to play a pivotal role.

As the market evolves, rough diamonds are no longer viewed as unfinished they are increasingly recognised as a deliberate, sophisticated choice.

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6.03ct Fancy Vivid Blue Diamond Could Fetch Up to $12 Million

A rare 6.03-carat fancy vivid blue diamond is set to headline an upcoming auction at Sotheby’s Geneva, with expectations reaching as high as CHF 9.5 million (approximately USD $12.2 million).

The cushion-modified brilliant, classified as a Type IIb diamond, originates from South Africa’s renowned Cullinan mine and is set in a platinum ring. It will lead the High Jewellery sale scheduled for 12 May.

This follows the strong performance of another Cullinan blue at Sotheby’s Geneva in May 2025, when the 10.3-carat “Mediterranean Blue” achieved $21.5 million, or approximately $2.09 million per carat highlighting sustained demand for rare blue diamonds at the top end of the market.

The current 6.03-carat stone carries an estimate of CHF 7.2 million to CHF 9.6 million (USD $8.0 million to $10.7 million), equating to roughly $1.33 million to $1.77 million per carat, reinforcing the continued strength of the coloured diamond segment.

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Masked Raiders Steal Dozens of Rolex Watches in Texas

In a stark reminder of rising security risks within the luxury sector, a group of masked thieves carried out a targeted raid on a jewellery store in Austin, Texas, stealing at least 50 pre-owned Rolex watches.

The incident occurred on 21 April at Marc Robinson Jewelers, where eight suspects used hammers to smash display cases after deploying pepper spray against an employee and a bystander. The group reportedly fled with a significant volume of high-value inventory before staff could intervene.

The store, known for holding one of the largest inventories of pre-owned Rolex watches in the region, was specifically targeted suggesting prior surveillance and planning. Authorities later recovered a stolen getaway vehicle but have yet to make any arrests.

The underscores the increasing need for enhanced security protocols across the jewellery and watch retail sector, particularly for businesses dealing in high-value branded goods.

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DCLA Insight:
From evolving consumer preferences toward rough diamonds to continued strength in rare coloured stones and rising security concerns, the global jewellery market is undergoing dynamic change. For industry professionals, adaptability, education, and vigilance remain key to navigating this rapidly shifting landscape.

Production Rises, Prices Fall, and Technology Redefines Trust in Diamonds

 

De Beers Production Up, But the Market Signal Is Misleading

De Beers reported a 17% year-on-year increase in rough diamond production for Q1 2026, reaching 7.1 million carats. At face value, the figure suggests strengthening momentum. However, a deeper analysis reveals a far more measured reality.

The increase is primarily operational, not demand-driven. Output surged 88% quarter-on-quarter, largely due to a rebound from a deliberately reduced Q4 2025 production base. Key contributors included planned ore releases from the Gahcho Kué mine in Canada and higher underground volumes at Venetia in South Africa both outcomes of long-established mine plans rather than responses to improving market conditions.

This distinction is critical. Production growth tied to mine development cycles does not reflect rising consumer demand. Instead, it highlights the timing of extraction phases within capital-intensive, long-term mining programmes.

More telling is the divergence between volume and value. While production rose 17%, De Beers’ average realised prices declined by 19% over the same period. This inverse relationship underscores ongoing softness in the natural diamond market, where increased supply is not being met with corresponding demand.

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Angola Expands Ambitions with Rio Tinto Joint Venture

In a strategic move to expand its diamond sector, Rio Tinto has entered into a joint venture with Angola’s state-owned Endiama to develop the Chiri project.

The new entity, Sociedade Mineira do Chiri, will be majority owned by Rio Tinto (75%), with the remaining stake held by Endiama. Located in Angola’s resource-rich eastern region, the project has already shown promising kimberlite indications following early-stage exploration.

While capital expenditure has yet to be allocated, the initiative reflects Angola’s broader strategy to increase diamond output and attract foreign investment. This comes at a time when global diamond prices remain under pressure, reinforcing the long-term nature of such investments rather than any short-term pricing optimism.

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DiaDNA: A Technological Leap in Diamond Traceability

KP Sanghvi & Sons has introduced DiaDNA, a next-generation traceability platform that represents a significant advancement in diamond authentication.

Unlike traditional methods that rely on inscriptions, documentation, or external markers, DiaDNA analyses the diamond at an atomic level using advanced scanning and artificial intelligence. This process generates a unique structural “fingerprint” inherent to the stone itself immutable and impossible to replicate.

Each fingerprint is securely stored in a cloud-based system, allowing verification at any stage of the supply chain, from manufacturing through to retail. The technology enables:

• Independent, real-time authentication
• Enhanced provenance tracking
• Reduced reliance on fragmented paperwork
• Greater transparency for consumers and compliance teams

Fully integrated into KP Sanghvi’s Surat operations since 2024, DiaDNA signals a broader industry shift toward verifiable, data-driven provenance. As expectations around ethical sourcing and transparency continue to rise, such innovations are likely to become central to maintaining trust in natural diamonds.

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Market Perspective

The Q1 2026 landscape presents a clear narrative: increased production does not equate to increased demand. While miners continue to execute long-term operational strategies, pricing pressures persist across the market.

At the same time, structural shifts are underway. Nations like Angola are positioning for future supply growth, while technological innovation exemplified by DiaDNA is redefining how diamonds are tracked, authenticated, and ultimately trusted.

For the trade, the message is precise: understanding the difference between operational supply growth and genuine market demand has never been more important.

Source: DCLA

Diamond Debut for De Beers and Sotheby's Collaboration

 

The sale of the Jwaneng 28.88 diamond later this month marks the start of a collaboration between De Beers and Sotheby’s.

Together they aim to “present exceptional diamonds as works of art,” although no details on the terms or scope of the agreement have been made public.

The collaboration centers on joint marketing and storytelling, going beyond a standard consignment, in which the miner selects an auction house.

Both companies co-create a branded narrative – “earth to art” – to promote across their channels

The flawless D-color unmounted Jwaneng 28.88 – cut from a 114.83-carat rough recovered at Botswana’s Jwaneng mine (Debswana, De Beers’ 50-50 government venture) -leads the auction at Sotheby’s Magnificent Jewels & Jadeite sale in Hong Kong on 23 April.

It carries an estimate of HKD 17 million to HKD 22 million (USD 2.2 million to USD 2.8 million).

Other De Beers diamonds from Jwaneng will be offered at the same sale, including a solitaire ring and a pair of diamond earrings.

Source: DCLA

Botswana’s President Challenges De Beers for Greater Control of the Diamond Industry

Botswana’s escalating challenge to De Beers marks a defining moment in the global diamond sector, as resource-rich nations increasingly pursue greater control over their natural assets. The long-standing model where multinational mining firms oversee operations while host nations receive royalties is now being reshaped by state-driven strategies aimed at securing a larger share of the value chain.

This shift reflects a broader geopolitical trend, with emerging economies seeking vertical integration across critical mineral supply chains. By moving beyond extraction and into cutting, polishing, and distribution, countries like Botswana are positioning themselves to capture more of the downstream value traditionally dominated by international corporations.

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What Is Driving Resource Sovereignty in Diamond-Producing Nations?

At the core of this movement is a clear economic reality: controlling extraction alone limits long-term wealth creation. In the diamond industry, mining accounts for just 15–20% of the final retail value, while the remaining 80–85% is generated through downstream activities such as processing, branding, and retail distribution.

Governments across Africa are increasingly aware of this imbalance and are taking steps to address it. The push for resource sovereignty is not only about increasing revenue, but also about building sustainable, locally anchored industries that create employment and long-term economic resilience.

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The Economics of Vertical Integration

Botswana’s ongoing negotiations highlight the financial logic behind vertical integration. The current bid process for a significant stake in De Beers represents a strategic opportunity to restructure ownership and maximise national returns.

A breakdown of the diamond value chain illustrates the potential:

• Upstream mining: 15–20% of total value
• Midstream processing and sorting: 25–30%
• Downstream distribution and retail: 45–55%
• Branding and marketing premiums: 10–15%

By expanding into these higher-margin segments, producing nations can significantly enhance revenue capture and reduce reliance on external operators.

A comparable long-term strategy can be seen in Government Pension Fund Global, which transformed oil revenues into a globally diversified investment portfolio demonstrating how resource wealth can be leveraged beyond commodity cycles.

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Geopolitical Implications of Resource Control

Beyond economics, control over diamond resources provides substantial geopolitical leverage. Botswana’s reported engagement with Gulf-based investment partners, including sovereign wealth funds from Oman, signals a shift toward diversified strategic alliances.

Such partnerships extend beyond mining, encompassing energy, infrastructure, and broader mineral development. This multi-sector approach strengthens negotiating power while aligning with global trends in supply chain security.

Across Africa, similar strategies are emerging:

• Democratic Republic of the Congo tightening control over cobalt
• Ghana refining gold sector regulations
• Zambia restructuring its copper industry

These developments highlight a continent-wide shift towards sovereign resource management, driven by both economic ambition and geopolitical necessity.

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A Structural Shift in the Diamond Industry

Botswana’s stance represents more than a contractual dispute it signals a structural transformation in how diamond resources are owned, managed, and monetised. As producing nations assert greater control, the traditional dominance of multinational mining companies is being challenged.

For the global diamond industry, this evolution could redefine supply chains, pricing dynamics, and the balance of power for decades to come.

Source: DCLA

De Beers Group extends Desert diamonds into bridal with a new palette of lighter hues

 

De Beers Group today announces the next chapter of Desert diamonds: an extension of the industry-wide beacon concept into the bridal market, bringing a fresh interpretation of natural diamond engagement and wedding jewellery through a refined spectrum of warm, nature-made hues that reflect enduring love and personal expression.

First launched to consumers in 2025 as De Beers Group’s first new beacon in over a decade, Desert diamonds is supported by De Beers’ largest category marketing investment in more than ten years. Developed to galvanise the industry around a central idea, Desert diamonds celebrates the wild, natural origin of natural diamonds and the distinctive spectrum of tones that occur in nature — from warm whites to champagne hues — offering consumers a compelling, authentic story of individuality and connection.

A natural evolution into bridal

The new bridal-focused chapter builds on the strong cultural momentum Desert diamonds has generated since launch, as warmer-toned diamonds become increasingly visible in popular culture and are worn by high‑profile figures across fashion, music and entertainment – including Bad Bunny, Doja Cat and Teyana Taylor.

This cultural momentum has also been reflected in some of the world’s most talked‑about bridal moments. Taylor Swift’s engagement ring, crafted by Kindred Lubeck, widely noted for its warm, candlelight diamond tone, has become a powerful cultural reference point for consumers.

This cultural interest has also translated into retail impact. Independent retailers who were involved in the first Desert diamonds campaign across the US reported increased foot traffic during the campaign’s initial run in 2025 and a rise in bridal‑led enquiries, with consumers increasingly interested in how these naturally warm tones could be applied to life’s most meaningful milestones — particularly engagement and wedding jewellery.

A lighter desert palette for modern bridal

Launching 13 April 2026 across the United States, Desert diamonds bridal is designed to meet growing interest in a more versatile, accessible spectrum of diamond colours — a softer, lighter desert palette that testing indicates resonates strongly with bridal audiences seeking authenticity and individuality in their choice of engagement and wedding jewellery.

The campaign will feature design archetypes including solitaire rings, three-stone rings and diamond bands and eternity-style pieces, created to highlight the natural variation and character of each stone.

An industry‑wide programme to inspire renewed desire

As with previous De Beers beacons — from the diamond bands to the tennis bracelet — Desert diamonds is designed as an industry‑wide programme with the goal of celebrating natural diamonds and reigniting consumer desire. De Beers has collaborated with over 60 designers across the industry to develop collections that interpret the desert‑inspired palette across both engagement and bridal jewellery, including Kindred Lubeck, designer of Taylor Swift’s engagement ring, with pieces available for future brides and couples to purchase.

Sandrine Conseiller, CEO of De Beers Brands & Diamond Desirability, said: “The success of Desert diamonds has reaffirmed something we’ve long believed: today’s consumers are drawn to what is real, rare and deeply personal. By celebrating the naturally occurring beauty and individuality of natural diamonds, the campaign struck a chord culturally and at retail, inviting a new generation to reconnect with the story behind their diamond.

Extending Desert diamonds into bridal is a natural next step. When people choose an engagement or wedding ring, they’re looking for authenticity — a symbol that feels true to who they are and the love they share. With this lighter, desert‑inspired palette, we’re offering couples a diamond that reflects their own story: shaped by nature, rich in character, and unlike anything else.”

De Beers’ Desert diamonds bridal campaign is supported by an integrated marketing programme across digital, social, outdoor and experiential channels. Through evocative storytelling, the campaign brings the Desert diamonds story into the context of love and commitment, drawing parallels between the individuality of each diamond and the unique journeys of the people who wear them. The creative spotlights how every diamond is shaped by nature and time, inviting brides to celebrate a commitment that is truly their own.

Source: DCLA

De Beers Slashes Number of Sightholders

 

De Beers has reportedly slashed the number of sightholders who can buy their goods by as much as a third, as it seeks to consolidate supply among a small core of stronger buyers.

The number of sightholders is understood to have been reduced from 69 to around 45, although De Beers has not confirmed numbers. Sightholders were informed by letter or phone call on Friday, 20 March.

It is the second biggest cut, in percentage terms, since sights were launched back in 1934. The number of De Beers sightholders peaked at around 350 in the 1970s.

It was halved in April 2001 as the company sought to prioritize value-driven buyers over sheer volume of sales.

De Beers warned current sightholders back in October 2024 that it would be terminating some of their supply agreements, by way of what it called an objective selection and allocation process.

Existing contracts, signed in 2021 and extended last year through June 30, 2026, end soon, paving the way for the new roster starting July 1.

The cutback suggests that the loss-making miner is repositioning itself for survival in a weaker market by creating a limited customer base that can reliably take volume in tough times.

Anglo American’s repeated De Beers write-downs (the latest by $2.3bn in February 2026) underscore the loss-making reality. De Beers CEO Al Cook emphasized “quality over quantity” in late 2024, aiming for deeper partnerships including polished diamond sales from Botswana-sourced stones.

De Beers last reduced the number of sightholders in January 2021, when it introduced new contracts dividing buyers into three categories – dealers, manufacturers and integrated retailers.

Source: DCLA

De Beers Reports $511 Million Loss as Global Diamond Crisis Deepens

 

The global diamond industry is facing its most severe downturn in decades, with De Beers posting a staggering $511 million EBITDA loss for 2025 — a dramatic collapse that underscores mounting structural pressures across the natural diamond market.

Despite generating approximately $3.5 billion in revenue, profitability deteriorated sharply, highlighting a widening disconnect between stable turnover and collapsing margins. The downturn reflects a perfect storm of falling realised prices, swelling inventories, rising operational costs and intensifying competition from laboratory-grown alternatives.

This historic loss signals more than a cyclical slowdown — it marks a structural turning point for the global diamond sector.

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Why Did De Beers Record a $511 Million Loss?

The scale of the financial decline is unprecedented. The company’s EBITDA performance deteriorated nearly 2,000% year-on-year, shifting from manageable losses into industry-defining deficits.

Key Drivers Behind the Collapse:

• Lower realised rough diamond prices
• Inventory accumulation throughout the midstream
• Production cuts impacting fixed-cost absorption
• Asset impairment charges reflecting weaker long-term pricing assumptions

While revenues remained broadly stable, margins compressed dramatically — revealing that demand weakness is affecting pricing power rather than transaction volume alone.

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Production Cut by 12% as Supply Is Calibrated

In response to deteriorating market conditions, rough diamond production was reduced by 12% to 21.7 million carats in 2025.

Unlike gold or oil markets where production cuts can rapidly rebalance supply, the diamond sector operates through a complex value chain involving mining, cutting, polishing and retail distribution. Inventory build-ups in 2025 forced disciplined output reductions designed to:

• Preserve cash flow
• Prevent further price collapse
• Protect long-term reserve value
• Stabilise global supply

However, elevated stockpiles remain a major overhang for 2026.

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Lab-Grown Diamonds Accelerate Structural Disruption

Laboratory-grown diamonds continue gaining market share, particularly in engagement rings — historically the most valuable segment of natural diamond demand.

These synthetics are chemically identical but typically sell for 60–80% less than natural stones.

Competitive Advantages of Lab-Grown Diamonds:

• Lower retail prices
• Ethical and environmental positioning
• Consistent quality
• Rapid scalable production

Millennial and Gen Z buyers are demonstrating increased price sensitivity and different value priorities compared with previous generations — a demographic shift that is reshaping long-term demand dynamics.

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China’s Luxury Slowdown Hits Diamond Demand

China, once a powerful growth engine for premium diamond jewellery, is experiencing reduced luxury consumption.

Key contributing factors include:

• Slower GDP growth
• Property market weakness
• Lower consumer confidence
• Currency sensitivity to imports

With Chinese buyers representing a significant share of high-end global diamond demand, the slowdown is having a disproportionate impact on producers.

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US Tariffs Disrupt Indian Diamond Processing Hub

Trade policy has compounded the crisis. India processes roughly 80% of the world’s rough diamonds, and new US tariffs on Indian polished stones have created additional cost pressures and uncertainty.

The impact includes:

• Higher landed costs for US-bound diamonds
• Supply chain bottlenecks
• Planning uncertainty
• Competitive distortions

Even if tariff relief emerges later in 2026, industry participants remain cautious about near-term recovery.

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Anglo American Takes $2.3 Billion Impairment

Parent company Anglo American recognised a $2.3 billion impairment related to its diamond division, reflecting revised long-term price expectations.

This writedown signals a structural reassessment of the sector rather than a temporary cyclical dip.

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African Economies Feel the Pressure

Diamond-producing nations such as Botswana face heightened economic vulnerability. Diamond revenues contribute substantially to:

• Government income
• Foreign exchange earnings
• Employment
• GDP

Production discipline across Southern Africa reflects both market necessity and economic sensitivity.

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What Happens Next? Recovery Scenarios for 2026–2028

Industry forecasts suggest cautious optimisation in 2026, with gradual recovery potentially emerging through 2027–2028.

Key variables include:

• Inventory normalisation
• Stabilisation of Chinese demand
• Trade policy resolution
• Lab-grown market share plateau

However, structural competition from synthetic diamonds is likely permanent, meaning natural diamond producers must reposition strategically.

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What This Crisis Reveals About Luxury Commodity Markets

The diamond downturn highlights broader lessons for luxury commodities:

• High income elasticity creates sharp downturn risk
• Supply chains concentrated in single regions amplify vulnerability
• Technological disruption can permanently reshape pricing structures
• Inventory cycles in opaque markets create extended recovery timelines

Unlike transparent commodities such as gold, diamond pricing lacks a centralised exchange — increasing volatility during stress periods.

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Investment Perspective

For long-term investors, sector distress can present contrarian opportunities — but risks remain elevated.

Favourable characteristics may include:

• Low-cost producers
• High-grade deposits
• Strong balance sheets
• Vertical integration

Nevertheless, structural shifts in consumer preference require careful risk-adjusted evaluation.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Commodity investments carry substantial risk, including potential loss of capital. Readers should conduct independent research and consult qualified financial professionals before making investment decisions.

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DCLA News will continue monitoring developments in the global diamond sector as the industry navigates one of the most challenging periods in modern history.