SourcingAug 29, 2024
De Beers Looks to India to Boost Demand for Natural Diamonds SourcingOct 08, 2024
Is Current Diamond Industry Turbulence Shaping a ‘New Normal’?
Industry players have found ways to cope with market conditions while working to reshape themselves in the face of emerging realities.
A Venus Jewel employee polishing a diamond on a wheel at the company’s facility in Surat, India. The company, a leading manufacturer of natural diamonds, is one of a number of big companies that has had to shift focus to cope with current market realities.
Mumbai, India—The Indian diamond industry enters the fourth quarter having been on a roller coaster ride for much of the last two years.
There have been multiple twists and turns, and ups and downs, with the most recent dip spanning the past few months.
During this period, polished inventories rose despite some improvement in demand for diamond jewelry in the United States, and prices remained flat or fell further, with trends varying across sizes and qualities.
“In July/August we witnessed another wave of turbulence,” said Vipul Shah, chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC).
While earlier downturns saw a coordinated response from the Indian industry, companies are now being encouraged to chart their own paths.
“We have been emphasizing the importance of self-discipline in such situations,” Shah stated.
Drawing Up Individual Road Maps
The industry has adopted a variety of strategies to cope with the current market conditions.
In late August, diamond manufacturing giant Kiran Gems declared an unprecedented 10-day vacation for its employees coinciding with the Indian festival of Janmashtami.
A few other companies did likewise, but there were also many, including larger firms, that continued their day-to-day operations without interruption.
Some already have adopted staggered working hours, shorter work weeks, or longer-than-normal vacations.
Others have adjusted operations over time and enhanced their abilities to navigate turbulent periods.
Venus Jewel is one example of such a company.
Partner Devansh Shah said the company recognizes the importance of maintaining industry confidence without compromising its core values.
“We have proactively responded to the market shifts, and remain adaptable to changing conditions, responding with agility and focus,” he explained.
This includes at present, a greater focus on the Indian market, which has remained buoyant, he noted.
Hari Krishna Exports also has fined-tuned its operations, including growing the network for its diamond jewelry brand, Kisna, in India.
Buyers crowd the aisles of the Diamond Pavilion at the IIJS show in India. The Indian market has come into focus as a potential future source of demand for natural diamonds in the face of slowing sales in other markets.
Despite tough conditions overall, the company has announced an incentive program aimed at boosting productivity and enhancing the skills of its artisans.
“This has uplifted employee morale, encouraging them to improve their craftsmanship while receiving rewards for hard work,” a company spokesperson said.
Industry leaders also have welcomed the measures taken by leading miners—De Beers Group, Alrosa, and others—to regulate supply.
The latest import/export figures published by GJEPC indicate that in August, imports of rough diamonds declined 49 percent in value terms and 54 percent in volume terms (number of carats) year-over-year.
Polished diamond exports, meanwhile, were down 20 to 25 percent in value terms and 20 to 22 percent in volume terms year-over-year.
Polished diamond exports, meanwhile, were down 20 to 25 percent in value terms and 20 to 22 percent in volume terms year-over-year.
However, the value of exports in August was up 14 percent from July, indicating that conditions are improving.
‘Green Shoots’ That Need to Be Nurtured
Russell Mehta, CEO of Rosy Blue India, believes that this multi-faceted approach has helped stabilize the situation for now, and while year-end demand from the U.S. is expected to be on par with last year, the situation in China is still bad.
“The segment for smaller diamonds has been less affected, while certified goods have been hit more. Currently, we are seeing green shoots in some categories,” he said, meaning that certain categories are starting to show signs of recovery.
“These will have to be carefully nurtured going forward and it is likely that the annual Diwali break [in late October/early November] will be longer than usual this year,” Mehta continued, adding, “All eyes will be on Q1 2025.”
D. Navinchandra Jewels, which exports diamond jewelry to North America, also noted mixed trends, though it expects U.S. demand to remain stable this year.
The company reported that jewelry set with small diamonds (0.20 carats and below in SI1 and lower qualities) that are relatively lower-value items have not seen major price fluctuations for the past 18 months.
At the high end, the niche market for jewelry set with large stones (above 5 carats) also remains stable.
But in the middle segment, for jewelry using higher quality (SI1 and above) small diamonds (0.20 carats and below) and jewelry set with certified goods (0.30-5 carats), there has been more price volatility, and this may continue for some time.
Punit Mehta, D. Navinchandra Jewels partner and CEO, said, “Now there is a low-but-steady demand as U.S. retailers restock for the coming season.
“They are now holding lower inventory of natural diamond jewelry and seem to be buying only what they need. Maintaining low inventory levels at all segments of the diamond industry seems to be the main focus for most players who want to protect their bottom line.”
Related stories will be right here …
A Longer-Term Perspective
GJEPC Chairman Vipul Shah stressed that steps to self-regulate the supply side of the business must be combined with campaigns to boost consumer demand.
GJEPC Chairman Vipul Shah stressed that steps to self-regulate the supply side of the business must be combined with campaigns to boost consumer demand.
“GJEPC is formulating plans to do this in the key markets in collaboration with other stakeholders including the Natural Diamond Council and leading retailers. We hope to roll out promotions at appropriate levels during peak seasons in each of these markets soon.”
It is also necessary to look beyond short-term measures and plan for the future, many feel.
“At an industry level there may be some consolidation, while individual companies will have to ‘right-size’ their operations to optimum levels.” — Russell Mehta, Rosy Blue
“The industry needs to recognize ground realities,” said Rosy Blue’s Russell Mehta.
He foresees a “new normal” emerging, with the market for loose polished hovering at current levels over the next few years.
“The pipeline will have to deal with this, and not react to immediate ups and downs,” he said.
“At an industry level there may be some consolidation, while individual companies will have to ‘right-size’ their operations to optimum levels to retain maneuverability in the face of unexpected scenarios.”
There are indications that these longer-term processes already have been set in motion by the winds of change, though it may take more than a few years for a stable equilibrium to be reached.
Exports of polished diamonds from India remain 20-30 percent below pre-COVID peaks, and it is becoming increasingly clear that there may be no going back.
New investments in cutting and polishing operations have plateaued over the past few years.
Meanwhile, the infrastructure and manpower that has been made redundant by the slowdown have been redeployed into the rapidly expanding lab-grown diamond business.
The industry is definitely reshaping itself, and the process may become more organized once a proposed government-backed taskforce to discuss policy measures and other steps takes shape.
Supply-Side Dynamics
The pending sale of De Beers also will almost undoubtedly affect the diamond industry’s future.
The pending sale of De Beers also will almost undoubtedly affect the diamond industry’s future.
Currently, most Indian diamantaires have taken a wait-and-watch approach.
They feel that a change in ownership will not affect mining operations in the near-term, though fresh investments and expansion may remain on hold for a while.
Yet, if rough can be mined and sold profitably, any new owner will surely find ways to raise the required capital, they pointed out.
Russell Mehta further noted that the planned increase in allocation of Botswana rough, from 30 percent to 50 percent of total production over 10 years, to the government-owned Okavango Diamond Co. bears watching.
The increased allocation is one of the terms of the Botswana government’s new 10-year sales agreement with De Beers Group that was reached last July but, as of press time, has not been officially finalized.
“A state-run company may have larger social objectives, unlike a private enterprise that aims to maximize shareholder value,” he said.
“How will this rough be distributed—through fixed allotments to long-term clients or auctions—at what prices, and what will be the share of global sales vis-à-vis beneficiation, all these could impact the pipeline.”
More on Sourcing
The Latest
Events & AwardsMay 22, 2026
Instore Buys JA New York ShowThe deal closed this week, which means Instore will produce the JA NY show slated to take place this fall.
FinancialsMay 22, 2026
Richemont’s Jewelry Brands Lead the Charge in Q4The company’s jewelry sales were up in Q4 and the fiscal year, with Richemont raising prices in part because of the cost of gold.
CollectionsMay 22, 2026
Leigh Maxwell Celebrates 5 Years at Couture With ‘Bauble’ CollectionThe “Bauble” capsule collection of colorful one-of-a-kinds includes our Piece of the Week, the “Bauble” earrings, featuring rose zircon.
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in VegasAs gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.
MajorsMay 22, 2026
Stuller’s New Packaging, Display Catalog Is Out The updated catalog has a newly dedicated section for gift wrapping.
Weekly QuizMay 21, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
PodcastsMay 21, 2026
Episode 5: Sotheby’s Frank Everett Puts the Auction Market in PerspectiveEverett covers colored stones’ surging popularity, the mellow return of the “Mellon Blue,” and his “The Devil Wears Prada” doppelgänger.
IndependentsMay 21, 2026
Springer’s Jewelers’ New Flagship Will Serve Next-Gen Luxury ShoppersFourth-generation CEO Lilly Mullen wants to emphasize experience, connection, and personalized service.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
Events & AwardsMay 21, 2026
JA Announces Nina Pugliese Memorial ScholarshipThe new award, created in partnership with Henne Jewelers, honors the late designer’s legacy through supporting jewelry education.
CrimeMay 20, 2026
NYPD Warns of Jewelry Swap Scams Targeting SeniorsThe NYPD is warning elderly New Yorkers to keep their jewelry hidden when walking outside to avoid being a target.
IndependentsMay 20, 2026
Adornment & Theory’s New Store Feels Like Home Designer Viviana Langhoff has realized her dream of owning a space for her Chicago jewelry store that looks and feels like her brand.
Events & AwardsMay 20, 2026
Here Is Couture’s 2026 Education Lineup The sessions will run from Friday, May 29, to Sunday, May 31, with one being a live taping of an episode of Couture’s podcast.
Lab-GrownMay 20, 2026
Savannah Friedkin Jewelry Names New CEOFormer Stephanie Gottlieb Fine Jewelry executive Morgan P. Richardson is joining the lab-grown diamond jewelry brand.
WatchesMay 19, 2026
Here’s the AP x Swatch Pocket Watch That Caused PandemoniumThe $400 pocket watch is a blend of Audemars Piguet’s iconic eight-sided Royal Oak and Swatch’s unserious Pop watches from the ‘80s.
CollectionsMay 19, 2026
Chris Ploof’s New Collection Makes an Ancient Metal ModernWith gold prices on the rise, the “Modern Electrum” collection uses an alternative, non-tarnishing metal alloy composed of gold and silver.
IndependentsMay 19, 2026
Ellen and Michael Fruchtman Retire, Sell Marketing Agency Fruchtman Marketing has new owners, Erin Moyer-Carballea and Manuel Carballea, and will relocate to Miami.
ColumnistsMay 19, 2026
Peter Smith: The (Mostly) Immutable Sales TruthsIn a column for the 2026 State of the Majors issue, Smith lists 10 time-tested principles about sales that still ring true.
ColumnistsMay 18, 2026
Edahn Golan: What a K-Shaped Economy Means for Fine JewelryIn a column for the 2026 State of the Majors issue, Golan spells out how the growing economic divide in the U.S. is reshaping the market.
CollectionsMay 18, 2026
Foundrae’s New Collection Taps Into JoyThe “Limitless Expansion of Joy and Hope” collection evokes summer through colored gemstones and motifs of butterflies and florals.
CollectionsMay 18, 2026
Hancocks London Acquires Historic ‘Inchiquin’ EmeraldThe jewel, circa 1890, is from the late Victorian era and was owned by descendants of the last high king of Ireland.
Events & AwardsMay 18, 2026
Here Are the 2026 JCK Industry Fund Grant Recipients This is what the nine recipients plan to do with the funds.
AuctionsMay 15, 2026
American Collector Ponies Up Almost $17K for John Wayne’s RingThe Western star’s 14-karat gold signet ring sold for six times its low estimate following a bidding war at U.K. auction house Elmwood’s.
Events & AwardsMay 15, 2026
JA, MJSA To Sponsor Roundtable at TJSThe discussion, "Rebuilding the Jewelry Workforce," will take place on Saturday, May 16, in Troy, Michigan.
AuctionsMay 14, 2026
White Diamonds Lead Sotheby’s Auction, Blue Diamond Does Not SellA matching pair of 18.38-carat, D-color diamonds from Botswana’s Jwaneng mine sold for $3.3 million, the top lot of the jewelry auction.
Supplier BulletinMay 14, 2026
A Diamond Is Forever Continues Desert Diamonds – Bridal ReinvigoratedSponsored by A Diamond Is Forever
SourcingMay 14, 2026
State of Colored Stones: The Spirit of Young American Gemstone CuttersThe next generation of lapidarists are entrepreneurial, engaged online, and see the craft as a means for artistic expression.
AuctionsMay 14, 2026
‘Ocean Dream’ Makes Waves at Christie’s, Fetching $17MIt was the second auction appearance for the fancy vivid blue-green diamond, which sold for $7.8 million at Christie’s Geneva 12 years ago.
