THE HITS & MISSES OF THE DIAMOND INDUSTRY IN 2023

The going has been tough for the diamond industry in 2023 prices plunged by 20%, demand slowed down, roughs became difficult to source, consumer preferences veered away from the world's most loved stone, and there was an overall atmosphere of uncertainty. And yet, the industry stood its ground, finding ways and means to cope with the challenges. Here's an overview of the diamond industry in the year gone by

The sparkle has been missing in the diamond industry for a while now as it has been facing a number of challenges and changes. Even before 2023 began, it was becoming increasingly clear that a slump in the industry was inevitable. And sure enough, the year turned out to be a difficult one. A combination of factors caused an upheaval in the sector, with the main issues being geopolitical conflicts, evolving consumer preferences, difficulties in sourcing roughs, rising interest rates, technological advancements, the onward march of lab-grown diamonds, and so forth. The demand for diamonds slipped, particularly in comparison with the boom years of 2021 and 2022. It would be fair to say that 2023 was a topsy-turvy year for the industry, which struggled hard to find its feet. Even so, the industry held out as much as it could.

Here’s a look at the good and the bad, the hits and the misses of the year 2023.

The HITS

BOTSWANA WRANGLES A PROFITABLE DEAL FROM DE BEERS

Botswana’s President Mokgweetsi Masisi drove a hard bargain with De Beers in order to get a better diamond sales deal for the people of his country. Diamond industry observers hailed it as ‘among the most memorable stories of 2023’.

The government of Botswana and De Beers reached a provisional deal just before their June 30 deadline, which came by only after relations between the two parties became fairly strained. Ultimately, both sides pledged not to take part in public discussions. On another occasion, they had to refute a report that the government wanted to stop selling large stones to De Beers.