Market Comment

News:

Diamond market in shock after US President Donald Trump announces 25% tariffs on Indian goods from Aug. 1 and unspecified additional penalties. US prices rebound following tariff news and recent softening of global prices for 0.30 ct. to 1.19 ct. rounds. Uncertainty continues, with industry expecting ongoing negotiations. US inventory rising as dealers restock following steady sales to independent jewelers. Majors hold off holiday buying. Indian market slow amid weak overseas sales. De Beers 1H revenue -13% YOY to $2B, underlying loss of $245M vs. profit of $73M in 1H 2024. LVMH 1H jewelry and watch sales -1% YOY to $6B, profit -13% to $895M. Rio Tinto 1H sales +9% YOY to $162M.

Fancies:

Long fancy shapes such as Oval, Marquise and Emerald doing better than rounds in 2 ct. and larger. High-quality Marquises, long Radiants and long Cushions in short supply. Long Cushions easy to sell and trading at 20% to 25% premium over square ones. Solid US interest in elongated Ovals of good shape and quality in D-I, VS-SI categories. Oval and Pear, 0.30 to 0.49 ct., F-I, VS diamonds in demand. Ovals 5% to 10% more expensive than Pears in US market. Very well-cut fancy shapes difficult to find and commanding premiums. Fancies with bad proportions illiquid.