The diamond market has remained stable as 2024 came to a close, with holiday sales aligning with modest expectations. However, the industry remains cautious as it enters 2025, grappling with fluctuating prices and shifting market demands.
In early January 2025, Rapaport adjusted its price list, reflecting the steady yet deep trading discounts that have characterized the market. The RapNet Diamond Index (RAPI) showed mixed results for December: while prices for 1-carat diamonds dropped by 0.5%, other categories, such as 0.50-carat and 3-carat diamonds, saw modest increases.
Despite these slight improvements, the overall trend for 1-carat diamonds over 2024 was a 23% decline, influenced by competition from synthetic diamonds and a downturn in demand from China. On the other hand, diamonds of lower clarity, such as SI diamonds, saw more severe price declines in December and for the year.
Looking ahead to 2025, cautious optimism prevails, with U.S. retail sales showing a modest 4% year-over-year growth, yet manufacturers remain cautious about producing and selling. The rough diamond market remains uncertain, with supply, demand, and prices all in flux. Notably, around 10 De Beers sightholders received no allocations for 2025 after missing purchase thresholds.
While China’s demand remains weak, India’s jewelry market has proven resilient, particularly during the wedding season. As the diamond industry enters 2025, its focus will be on navigating the uncertainties ahead while managing the impact of fluctuating prices.