This content was first published on IGR – Italian Gemological Review no. 18 in 2024. The information provided here is therefore current as of the original publication date.
In the early months of 2024, the diamond market is experiencing a clear downward trend in prices. There’s a noticeable increase in the availability of diamonds with traditionally less desirable characteristics, such as those with visible inclusions or strong fluorescence, all at lower price points. Conversely, there’s a growing demand for fancy diamonds — such as ovals and pears — with sellers offering more flexibility in pricing due to abundant stock.
Aside from price adjustments, there are other notable changes in the global diamond landscape. More recently, the Russian Ministry of Finance’s decision to purchase and stockpile rough diamonds from Alrosa through the Gokhran agency has added to the complexity. Though embargoes and forced stockpiling aren’t new to the gemstone industry, uncertainties remain about how to effectively enforce these restrictions. This is a challenge for the entire supply chain.
Following a slowdown in the Chinese economy, as evidenced by the recent Hong Kong fair, market observers are now closely monitoring developments in India, particularly following the inauguration of the new Surat Diamond Bourse.
India appears to be in a seasonal lull, typical of the end of the financial year, which ends in the first quarter. Demand for round cuts and high quality stones such as ten carats, DF, VVS is declining. This could be a sign of weaker consumer interest or other market influences.
Meanwhile, US retail sales show a modest upturn in 2024, although not as robust as last year. Brands such as Kendra Scott are gradually introducing synthetic diamonds into their fashion jewellery collections. This suggests that consumers are now viewing synthetic and natural diamonds as distinct options: the former for affordability, the latter for price stability.
Article by Sergio Sorrentino, published on IGR – Italian Gemological Review #18 – Spring 2024.
