Pockets of Growth Amid Diamond Market Pressure

Diamond Gems Weekly - July 8.

I just finished writing an article about the US jewelry market that will be published in the coming weeks. Through my conversations and interviews I was encouraged by the overall sentiment in the US jewelry retail space. Sales appear to have stabilized after the slump and boom during and after Covid, and they’ve done so above pre-pandemic levels.

But the market is nuanced and there is deep concern about the decline in natural diamond content used in jewelry, which is weighing on the rest of the pipeline.

That is worth keeping in mind as we consider the narratives shaping the diamond industry this week:  

1. The big macro stories making headlines – De Beers, Botswana and the G7 Russia sanctions – can distract us from the more immediate issues affecting our businesses. My latest ‘Diamond Minute’ video outlines what we should focus on in the second half of the year.

2. Rapaport reported that polished prices declined in June and 1H, with the Diamond Industry Under Pressure Amid Slow Sales.

3. Petra Diamonds said like-for-like rough prices fell 3.8% between May and June, and by 12.4% during the fiscal year that ended June 30.

4. Global rough production fell 8% to 111.52 million carats in 2023, with value down 20% to $12.73 billion, according to data published by the Kimberley Process. The average price declined 14% to $114 per carat. Keep in mind that mining companies began 2024 with a lot of inventory in their vaults.

5. The luxury segment continues to outperform, with Richemont and LVMH setting the bar. Read my analysis on ‘How Luxury Houses Are Boosting Their Jewelry Market Share’.

6. Richemont, meanwhile, appointed new CEOs at two of its maisons: Cartier and Van Cleef & Arpels.

7. Titan Company reported jewelry sales rose 9% in the fiscal first quarter that ended June 30, highlighting India’s status as the outlier growth market.

8. Rocksbox, a Signet Jewelers banner, has moved away from its subscription-based jewelry rental model in favor of an e-commerce site from which customers can make a purchase without membership.

9. Hill & Co., an industry consultancy we should all be following, launched its Business of Jewelry Report. This quarter’s issue, titled Breaking the Chain, tackles the topic of shortening supply chains and their impact on global B2B jewelry and diamond businesses.

10. Gem Diamonds recovered this 123.20-carat (pictured), type II white diamond at its Letšeng mine in Lesotho, the eighth stone over 100 carats recovered at the site this year.

(Image credit: Gem Diamonds)

We’re in a relatively quiet period for the diamond industry as the trade typically slows down during the summer months. We can expect a stronger news flow in the coming weeks as earnings season begins, and companies report about the second quarter.