Diamonds have been the darling of the luxury market for the past few years, but global diamond prices have fallen sharply this year by the leading diamond companies to try to ease the decline.

The global wholesale price of polished diamonds has fallen by about 20 percent this year, while the price of uncut diamonds has fallen by about 35 percent, according to CCTV Financial reports.

In response, international diamond giant De Beers previously announced that it will continue to reduce the supply of rough diamonds in the ninth sales cycle of the month ended November 3.

In September, Alrosa, DeBeers 'main rival, Russia's largest diamond mining and processing company, took an unprecedented step to stop all diamond sales for two months in an effort to support prices.

The measures taken by the diamond industry giants have had short-term results, with the price of some small diamond auctions rising by around 10% in the past week.

During the COVID-19 outbreak, global diamond sales have soared, with many consumers buying luxury goods such as jewelry online. However, after the economy was fully restarted, the global demand for diamonds has plummeted.

Another reason for the falling price of diamonds is that artificial diamonds quickly grab the market for natural diamonds. According to global jewelry industry analysts, the market share of artificial diamonds has been increasing since 2021, reaching 49.9 percent as of July this year.