THE MONTHLY 'RAP': Is the Diamond Industry Under Pressure or Poised for Rebound?

March has seen a blend of trends, as the diamond industry faces notable fluctuations. Market softness has been evident, with Petra Diamonds announcing the layoff of 84 employees at its Finsch and Cullinan mines. Alrosa reported a 77% plunge in profits for the full year and has paused production at certain mine sites, highlighting the pressures within the sector. Burgundy Diamond Mines reported a $94.7 million loss. Additionally, high gold prices have weighed on China's jewelry market, affecting consumer purchasing power. Brilliant Earth also experienced a drop in average sale value, denting its 2024 revenue. Challenges persist for industry giant, Signet Jewelers, with a major shareholder expressing dissatisfaction and seeking an immediate sale. The company also plans to close stores and centralize diamond sourcing.

Still, there have been silver linings within the industry. At the recent Hong Kong jewelry show, diamond dealers reported robust demand. Gem Diamonds benefited from strong rough prices, bolstering its 2024 performance, and a successful tender by TAGS and Sodiam resulted in over $15 million in sales of large stones. The auction scene also showcased positive trends, with Christie's featuring diamonds offered without reserve, and Sotheby's placing a price tag of over half a million dollars on a 17-carat diamond. Additionally, a 10-carat blue diamond at Sotheby's is anticipated to fetch up to $30 million, according to some dealers. 

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Here's your diamond market analysis from RapNet for March 2025

In March, the 1ct RAPI increased 1.4%. Overall, higher-quality diamonds generally performed better than lower-quality round 1-carat diamonds. The top performing category of the month was D-F, IF-VVS, which increased in price 2.1%. At the end of March, nearly a quarter of round 1-carat diamonds available on RapNet were for G-J, VSs while over 22% of the searches on RapNet throughout the month were for G-J SIs.

March 2025 Diamond Trend Analysis Image

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