De Beers Quietly Offers Discounted Diamonds to Select Clients

De Beers

On May 13, Bloomberg reported that De Beers, the world’s leading luxury diamond supplier, has been secretly selling rough diamonds to a limited group of clients at a 10–20% discount. The unusual move by the industry giant, which typically sets non-negotiable prices, comes on the heels of its announcement last week to shut down its lab-grown diamond (LGD) jewelry brand, Lightbox — a one-two punch that is shaking up the global jewelry industry.

Off-the-Record Side Deals — A Rush to Clear Excess Inventory

De Beers usually conducts ten annual “Sight” sales in Botswana, offering fixed-price rough diamonds to about 70 registered customers known as sightholders. However, in recent months, the company has reportedly made off-market deals with a small number of buyers, offering discounts of up to 20% from its official prices — a strategy aimed at quickly reducing ballooning inventories without formally cutting prices.

Within the industry, these backdoor deals are viewed as unofficial price cuts, sparking growing frustration over the lack of transparency and fairness in how selected clients are being chosen.

The Closure of Lightbox — A Return to Natural Diamonds

The move to offload inventory comes in parallel with De Beers’ announcement last week that it will shut down Lightbox, its LGD jewelry brand launched in 2018. Lightbox entered the market with a clear message: LGDs are a separate category from natural diamonds. With a linear pricing model of $800 per carat, it sought to bring clarity to the LGD space. However, as wholesale LGD prices plunged nearly 90% over the past few years, Lightbox lost its competitive edge. The price collapse further reinforced the brand’s message — that LGDs and natural diamonds are fundamentally different — before ultimately leading to its closure.

De Beers CEO Al Cook commented, “The price erosion in lab-grown diamonds served as a reminder of the rarity and enduring value of natural diamonds.” The company will now focus its investments on natural diamond branding and category marketing.

Underlying Sale Pressure from Anglo and Structural Reform

Behind these shifts lies a broader restructuring plan by Anglo American, De Beers’ parent company. Anglo is reportedly considering selling the De Beers business and has instructed management to halt further inventory buildup and focus on restoring profitability. The closure of Lightbox and the secret discounting strategy are seen as part of these preparations.

U.S. Tariff Pressures and the Future of the Jewelry Market

Another challenge facing the diamond sector is the rising pressure from U.S. import tariffs. All diamond imports into the United States — the world’s largest consumer market — are currently subject to a 10% tariff, with further increases expected after the 90-day suspension period ends. Despite having no domestic diamond production, the U.S. is heavily reliant on polished stones cut and processed in India, which accounts for roughly 90% of global manufacturing.

In anticipation of the tariffs, suppliers have rushed to ship large volumes to the U.S., though concerns remain about weakening consumer demand as higher retail prices loom.

A Question of Trust in the Diamond Business

De Beers’ off-the-record discounting calls into question its long-held influence over pricing and supply in the diamond industry. For jewelry brands and retailers, uneven sourcing costs could directly affect pricing strategies and market positioning. The episode raises broader questions: Which suppliers can be trusted? What defines value in the diamond category today?

While De Beers moves forward in redefining the value of natural diamonds, the opacity of its current practices may cast a long shadow over its brand equity and trust across the jewelry industry.

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