Core Viewpoint - De Beers, the world's largest diamond producer, has lowered the prices of rough diamonds over 0.75 carats, but this price reduction has not yet reached the retail market, where prices for natural diamond jewelry remain stable or even increase due to rising gold prices [1][2][3]. Group 1: Price Dynamics - De Beers has adopted a unified pricing policy for rough diamonds, leading to a recognized actual negotiation range of 10%-15% for price reductions, with a cumulative drop of over 25% in rough diamond prices over two years [2][3]. - Despite the drop in rough diamond prices, retail prices for natural diamond jewelry have not decreased, with some prices increasing due to the rising cost of gold, which has surged over 400% in the past decade [2][3][7]. - The price transmission from rough diamonds to retail is hindered by a multi-layered pricing mechanism in the diamond industry, where diamonds pass through various stages of markup before reaching consumers [3][10]. Group 2: Market Trends - The cultivated diamond market is rapidly expanding, with retail prices dropping over 50% from peak levels, making them significantly more affordable compared to natural diamonds, which still command high prices [4][5][10]. - The core consumer group for cultivated diamonds is young couples, particularly those preparing for weddings, who are increasingly opting for these more cost-effective options [5][6]. - The market for cultivated diamonds is projected to grow significantly, with sales expected to account for over 40% of the global diamond jewelry market by 2025, reflecting a rapid increase in consumer acceptance [6][10]. Group 3: Consumer Behavior - Recent cases of drastic declines in the resale value of small carat diamond rings have shattered the myth of diamonds as a long-term investment, leading consumers to prefer gold for its better value retention [7][8]. - The perception of diamonds as a luxury item is changing, with younger consumers becoming more rational and less influenced by traditional marketing narratives about diamond scarcity [8][10]. - The preference for gold jewelry over diamonds is growing, with many consumers prioritizing value for money in their purchases [10][11]. Group 4: Industry Transformation - The diamond market is undergoing a significant transformation driven by technological advancements, changing consumer demand, and the increasing appeal of gold as an alternative [10][11]. - De Beers is facing challenges, including a stockpile of over $20 billion in diamonds, prompting a need to adjust its business strategy [9][11]. - The industry is likely to solidify a dual-track structure, with natural diamonds focusing on high-end markets while cultivated diamonds capture the mass market [11].

Core Viewpoint - De Beers, the world's largest diamond producer, has lowered the prices of rough diamonds over 0.75 carats, reflecting a structural change in the diamond market driven by the rise of lab-grown diamonds and the impact of rising gold prices [2][3][10]. Group 1: Price Adjustments and Market Dynamics - De Beers' new pricing policy has led to a 10%-15% actual negotiation range, with a cumulative price drop of over 25% in rough diamond prices over two years due to supply-demand imbalances in the natural diamond market [3][13]. - Despite the price drop in rough diamonds, retail prices for natural diamond jewelry remain stable or have even increased due to rising gold prices, which have surged over 400% in the past decade [5][12]. - The price transmission from rough diamonds to retail is hindered by a multi-layered pricing mechanism in the diamond industry, where diamonds undergo several markups before reaching consumers [5][12]. Group 2: Rise of Lab-Grown Diamonds - The lab-grown diamond market is expanding rapidly, with retail prices dropping over 50% from peak levels, making them significantly more affordable compared to natural diamonds [6][9]. - Lab-grown diamonds are marketed as a cost-effective alternative, with prices for high-quality lab-grown diamonds being approximately 10 times lower than those of natural diamonds [6][8]. - The consumer demographic for lab-grown diamonds is primarily younger couples, who are increasingly drawn to their affordability and quality [8][9]. Group 3: Changing Consumer Perceptions - Recent cases of significant depreciation in the resale value of small carat natural diamonds have shattered the myth of diamonds as a long-term investment, leading consumers to prefer gold for its better value retention [10][12]. - The diamond industry's marketing strategies, which emphasize scarcity and long-term value, are losing effectiveness as younger consumers become more rational in their purchasing decisions [10][12]. - The market is witnessing a shift towards a dual-track system where natural diamonds focus on high-end luxury while lab-grown diamonds capture the mass market [13][14]. Group 4: Industry Challenges and Future Outlook - De Beers is facing inventory issues with over $2 billion in unsold diamonds, prompting price adjustments to alleviate financial pressure [13]. - The diamond market is undergoing profound changes due to technological advancements, shrinking consumer demand, and the increasing preference for gold as a reliable investment [13][14]. - The industry is expected to see a continued division where natural diamonds cater to high-end markets while lab-grown diamonds dominate everyday consumer segments [14].