When Giants Stumble: Why De Beers’ $2.3 Billion Write-Down Confirms the Case for Fancy Color Diamonds
- Rayah Levy, FCD Invest President
- 1 day ago
- 2 min read
Updated: 5 hours ago
Part 1: The Write-Down as Validation
Several clients and colleagues have reached out regarding the recent article on Anglo American's third consecutive downward adjustment to De Beers' carrying value over three years, seeking my perspective. I have prepared an in-depth three-part analysis to be shared in the weeks ahead.
Part 1 (Today): The Write-Down as Validation – How this development underscores the compelling investment case for fancy color diamonds and signals a profound structural shift in the diamond market.
Part 2 (Next Week): Scarcity That Cannot Be Engineered – A strategic assessment of the unique positioning of colored diamonds amid evolving market dynamics.
Part 3 (Concluding): The Future of Colored Diamond Finance – A forward-looking examination of how natural fancy color diamonds will redefine wealth preservation and portfolio diversification in the years ahead.
I look forward to sharing these insights with you.
When Giants Stumble: Why De Beers’ $2.3 Billion Write-Down Confirms the Case for Fancy Color Diamonds
When a global mining giant cuts the value of its flagship diamond business in half, the world should pay attention. Anglo American’s latest decision to slash the carrying value of De Beers from $4.1 billion to $2.3 billion is its third write-down in as many years, and a clear signal that the traditional white diamond market is in structural transition. For those of us who have argued for years that the future of wealth preservation in diamonds lies in ultra-rare fancy color diamonds, this moment is not a surprise; it is confirmation.
The De Beers Write-Down: Symptom of a Deeper Shift
In its latest results, Anglo American recorded a $2.3 billion pre-tax impairment on De Beers, reducing the book value of the business to $2.3 billion and widening the group’s net loss to $3.74 billion. While De Beers’ 2025 revenue ticked up 6% to $3.49 billion, rough-diamond prices fell sharply—its rough-price index dropped 12% on core goods and about 25% when including large discount “stock rebalancing” deals on less-desired rough. Underlying EBITDA swung to a loss of over $500 million as margins collapsed.
Anglo cited two primary causes: a “prolonged shifting of customer preference between natural diamonds and lab-grown diamonds” and a surplus of rough relative to demand, compounded by macroeconomic uncertainty, tariffs, and weak Chinese appetite. In other words, an oversupplied, commoditized segment is colliding with cheaper synthetic substitutes and uneven global demand.
This is not a temporary cyclical dip; it is a structural repricing of a segment that behaves increasingly like a bulk industrial commodity.
Please email FCD Invest at info@fcdinvest.diamonds to discuss your personalized long-term investment strategy.
For more information on Fancy Color Diamonds as an investment, please visit our Fancy Color Diamond information page linked here.
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