The discovery of the Motswedi diamond in Botswana has brought renewed attention to an industry currently facing significant challenges. Unearthed on August 22, 2024, at Lucara’s Karowe mine, the 2,488-carat stone is the largest uncut diamond in the world, surpassed only by the historic Cullinan diamond found in South Africa in 1905.
The Motswedi, named from Botswana’s Setswana language meaning “water spring” to signify renewal, reflects a hopeful symbol amid a diamond market experiencing a sharp decline. Unlike the Cullinan, which was famously cleaved and cut into multiple gems—the largest of which form part of the British Crown Jewels—the future of the Motswedi remains uncertain. Lucara, the Canadian mining company behind the find, has indicated that several museums have expressed interest in acquiring the diamond in its rough form, potentially foregoing cutting altogether.
Weighing approximately 497.6 grams, the stone was located utilizing Lucara’s proprietary Mega Diamond Recovery system, an advanced X-ray Transmission scanning technology that identifies large diamonds within kimberlite before crushing, preventing damage to these rare gems. This technology has been in place since 2015 and was enhanced in 2017 to improve recovery of such “mega diamonds.” Initial assessments grade the Motswedi as a D color diamond, which is the highest rating for colorlessness, making it particularly valuable. Estimates place its worth north of £140 million.
The diamond industry, however, is confronting a crisis triggered by multiple factors, including the rising market share of lab-grown diamonds, which are chemically identical to natural stones but significantly cheaper and often indistinguishable without specialized testing. Ethical concerns regarding mining transparency and environmental impacts have also dampened consumer enthusiasm for natural diamonds.
Major players in the sector have felt these pressures acutely. De Beers, a dominant force in diamond mining and marketing, reported nearly a $500 million loss last year and announced a 12 percent production cut for the 2025 financial year, following a buildup of a $2 billion inventory. Its joint venture with the Botswana government, Debswana, has reduced production by 40 percent since 2023. Antwerp, traditionally considered the global epicenter for diamond trading, saw the value of diamonds traded there drop by half between 2022 and 2023, reflecting broader industry headwinds.
Smaller retailers are also affected. Michael Golan, who helps run a family-owned jewelry store in Antwerp’s diamond district, reported sales halving amid shifting consumer preferences. “Before, a diamond was a diamond. It was a dream of every woman,” he said. Today, consumers are more inclined toward luxury goods such as designer handbags.
Despite the decrease in demand for smaller stones, large natural diamonds continue to attract interest for their rarity and appeal to affluent collectors. The Motswedi’s emergence raises questions about whether such exceptional finds can help stabilize or even revitalize a beleaguered market. For now, the diamond stands as a remarkable geological artifact and a potential beacon for an industry at a crossroads.