January diamond prices drop in slow market

The diamond market was slow in January, with mixed reports about holiday sales, according to Rapaport’s RapNet Diamond Index.

Diamond prices declined, with some improvement in 0.30- to 0.50-carat, and 1 carat diamonds — reflecting round D to F, IF to VVS2 goods, which saw a 0.4%, 0.6% and 2.3% decline respectively.

Meanwhile, fancy-shape diamonds of 3 carats and larger fared better, despite a 0.9% drop in prices.

The report stated that the US holiday season “met the industry’s low expectations”.

The rough diamond market has also been slow as De Beers recently reported a 26% drop in production in the fourth quarter.

However, De Beers and the Botswana government recently reached a landmark agreement that includes extending joint venture Debswana’s mining licenses beyond 2029. The two parties will be working together to promote natural diamonds.

The report also revealed that US trade wars are heating up following moves to impose tariffs on Canada and Mexico.

Canadian diamonds may be subject to high US tariffs if these go through. Additionally, the Chinese holiday season is not reviving demand, while India demand remains stable.

The report also stated that the US Customs and Border Protection (CBP) is demanding that importers of polished diamonds disclose the stones’ country of origin.

Grandfathered diamonds — those that entered the market before sanctions on Russian diamonds went into effect — will likely be exempt.