Overview of 2024’s Diamond Industry
Each week, the Rapaport Market Comment distills global market trends into a concise format, known internally as the “5-liner” for its brief appearance in the Rapaport Price List. Compiling this requires input from global offices and insider discussions, highlighting the retail and wholesale activity across the US, Belgium, Israel, India, and Hong Kong. Reviewing a year’s worth of these updates offers valuable insights into industry developments, seasonal shifts, and supply-demand fluctuations. Below is a curated month-by-month summary of the key trends and events that shaped 2024.
January
- Round diamond prices began to stabilize, though discounts remained substantial. Fancy-shape prices showed mixed results.
- Reports surfaced of synthetic diamonds with counterfeit GIA inscriptions.
- The IIJS Signature show in India saw strong trading, buoying optimism for the wedding season.
- Smaller rough diamonds faced a supply crunch due to India’s import freeze, driving market activity.
- De Beers implemented a 13% price cut at its January sight but maintained higher prices than open-market auctions, drawing criticism from sightholders.
- US restocking remained sluggish, while Chinese retail underperformed leading up to the Lunar New Year.
February
- Luxury retailers reported robust 2023 sales: Swatch Group grew 6% to $8.7B, and LVMH expanded 3% to $11.8B.
- Implementation of G7 Russia sanctions created uncertainty.
- Polished diamond prices edged upward for rounds but declined for fancy shapes.
- US buyers purchased sparingly, while Indian domestic demand was strong.
- The OFAC banned Russian diamonds over 1 ct., even if cut outside Russia, starting March 1.
- De Beers saw stable prices in February after January’s cuts, with strong demand for certain rough goods.
March
- Seasonal slowdowns hit the US and Chinese markets.
- Hong Kong trade shows saw disappointing sales and attendance.
- Credit caution grew among Indian dealers, while sanctions complicated Antwerp’s shipping processes.
- A rise in synthetic diamond engagement rings was noted, increasing from 12% in 2019 to 46% in 2023.
- Forevermark announced a shift in strategy, ceasing the supply of loose diamonds to focus on the Indian market.
April
- The market entered a seasonal lull, with weak retail demand in the US, India, and China.
- Buyers demanded origin statements for polished diamonds under 1 ct., extending beyond sanctions requirements.
- De Beers’ rough diamond prices created challenges for dealers, particularly for larger stones.
- May
- Trading slowed significantly, even for the typically active spring season.
- Reports circulated about De Beers’ potential sale, causing market uncertainty.
- The EU proposed exemptions for certain Russian diamonds, while De Beers cut prices further.
- De Beers collaborated with Signet to promote natural diamonds.
- June
- Las Vegas shows highlighted mixed results: decent jewelry sales but weak loose-diamond trading.
- De Beers announced a shift away from synthetic diamond production for jewelry.
- Polished prices dropped, with Indian sellers facing rising supply and low demand.
- The EU extended sanctions compliance periods, adding a grandfathering clause.
- July
- Market weakness persisted as inventories rose and prices declined.
- De Beers cut its production forecast, reflecting subdued demand.
- Indian manufacturers shifted focus to smaller, more affordable diamonds.
- August
- De Beers canceled its August sight due to weak demand.
- Indian factories extended summer vacations to curb oversupply.
- Demand for small diamonds improved slightly in the lead-up to Diwali, aided by reduced gold customs duties.
September
- Diamond trading at the Hong Kong show fell short of expectations.
- Alrosa pledged to stabilize rough prices to prevent polished devaluation.
- US retailers saw steady sales but favored cautious restocking strategies.
- Interest rate cuts by the US Federal Reserve boosted consumer spending hopes.
- October
- The market showed signs of stabilization, though discounts remained high.
- Strong local demand in India for natural diamonds and a promising start to the US holiday season bolstered sentiment.
- Select diamond categories saw shortages due to focused demand.
- November
- Diamond prices stabilized at lower levels, supported by steady US holiday sales.
- Indian manufacturers maintained reduced production as inventories dropped.
- De Beers and the Natural Diamond Council urged increased marketing investments.
- December
- The holiday season brought cautious optimism, with stable prices for some diamond categories after months of decline.
- De Beers and Alrosa introduced significant price cuts for rough diamonds, aiming to improve margins for manufacturers.
- Expectations for the Chinese New Year remained muted, concluding a challenging year for the industry.
This month-by-month breakdown captures the highs and lows of the diamond market in 2024, offering a comprehensive view of the year’s challenges and opportunities.