In July, global diamond prices continued their decline amidst ongoing economic challenges. Demand from China remained subdued, contributing to the persistent downturn. De Beers responded to market conditions by reducing production by 15% in the second quarter. Meanwhile, India reported a significant 26% drop in diamond exports for June. Notably, there is a growing trend among consumers to choose lab-grown diamonds over mined ones, with nearly half of all diamond engagement rings sold in the US now being lab-grown.
In the diamond market, smaller stones (under 0.49 carats) saw limited activity, while larger diamonds generally experienced a more balanced performance. Prices for diamonds in the range of 1.00 to 1.24 carats with colors D-G and clarities IF-VS2 decreased by 2-7%. Similarly, diamonds weighing 1.50 to 1.99 carats with colors G-J and clarities VVS1-SI1 saw price declines of 1-4.5%. On the other hand, larger diamonds such as those between 5.00 and 5.99 carats, with colors D-G and clarities IF-VS2, saw price increases ranging from 1-45%. However, diamonds in the same weight category with clarities SI2-I1 saw decreases of 1-4%.
In fancy cuts, the market showed varied changes. For instance, smaller fancy cut diamonds weighing 0.23 to 0.29 carats with colors J and clarities SI3-I1 experienced price declines of 3.5-4.5%. Conversely, larger fancy cut diamonds weighing 3.00 to 3.99 carats with colors F-H and clarities VVS2-VS2 saw price increases of 3-5%. Overall, the diamond market in July reflected a complex landscape with mixed price movements across different categories and sizes.
