Key points
- This move is seen as a strategic attempt to stabilize marketing efforts and uphold the value perception of natural diamonds in a climate increasingly complicated by lab-grown alternatives and fluctuating demand.
- According to this Gems and Jewellery News report, the RapNet Diamond Index (RAPI™) for 1-carat round, D to H color, IF to VS2 clarity diamonds fell 0.
- With political decisions in Washington set to either relieve or exacerbate current stresses, and with evolving consumer preferences shaping demand for specific sizes and types of stones, the second half of 2024 could bring either much-needed recovery or deeper market correction.
Gems and Jewellery News: A Volatile June for Diamonds Worldwide
The global diamond industry faced another shaky month in June as market players held their breath over looming US trade tariffs. Despite moments of strength, especially in the high-end luxury sector during major events like the Las Vegas jewelry shows, overall sentiment was cautious. The uncertainty stems from a pending decision on reciprocal US tariffs, originally deferred for 90 days, which are set to expire on July 9.
Global Diamond Prices Dropping Due to Uncertainties.
Image Credit: Diamond Express
Midway through June, the industry began showing signs of hesitation. According to this Gems and Jewellery News report, the RapNet Diamond Index (RAPI™) for 1-carat round, D to H color, IF to VS2 clarity diamonds fell 0.3%. The decline was even steeper for smaller stones: the 0.30-carat category dropped 1.7%, 0.50-carats fell 2.3%, and 3-carat diamonds slipped by 0.8%. The market’s attention is sharply focused on whether the United States will reintroduce tariffs that could further stress the global supply chain and pricing structures.
Las Vegas Events Bring Mixed Signals
The JCK Las Vegas and the Luxury show revealed an American consumer base that is still purchasing — but with selective preferences. Larger stones, particularly 2 carats and above, found buyers more easily than their smaller counterparts.
Orders for rounds below 1.20 carats remained sluggish. The Luxury show, tailored toward elite clients, stood out with stronger than expected orders, suggesting that affluent buyers continue to show interest despite global instability.
However, the international presence at these shows was diminished. Fewer overseas exhibitors participated, highlighting concerns over both geopolitical instability and trade policy ambiguity. Meanwhile, other key global markets remained muted — India’s consumer market was seasonally slow, China’s recovery stalled, and Israel’s diamond trade virtually shut down for two weeks due to its conflict with Iran.
Production Rises but Value Dips
The Kimberley Process released figures showing that global rough diamond production for 2024 rose by 6% compared to the previous year, reaching 118 million carats. However, the total market value dropped 10% to $11.5 billion, with the average price per carat down to $97 — a 15% decline. This suggests a potential oversupply of lower-quality goods, which has already been reflected in the softening prices for smaller rounds.
India’s own diamond trade indicators confirm this trend. In May, rough imports reached $1.1 billion, outpacing polished exports at $950 million. Analysts warn that this discrepancy points to a stockpile of lower-grade stones that may prove difficult to move in the short term.
Shifting Ground in Grading and Governance
In a related development, grading institutions are evolving to meet the changing industry landscape. The Gemological Institute of America (GIA) has adjusted its synthetic diamond grading strategy, now opting for descriptive classifications rather than traditional grades. HRD Antwerp has gone a step further and ceased grading loose synthetic diamonds entirely.
In the policy arena, a new financial initiative is in motion. African diamond-producing countries and key industry groups signed an agreement in Angola to fund the Natural Diamond Council (NDC) with an estimated $80 million. This move is seen as a strategic attempt to stabilize marketing efforts and uphold the value perception of natural diamonds in a climate increasingly complicated by lab-grown alternatives and fluctuating demand.
The global diamond market stands at a delicate crossroads. With political decisions in Washington set to either relieve or exacerbate current stresses, and with evolving consumer preferences shaping demand for specific sizes and types of stones, the second half of 2024 could bring either much-needed recovery or deeper market correction. What is clear, however, is that the industry must remain agile and responsive as uncertainty becomes the new normal.
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