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.”
Editors' Picks
Sponsored by
More on Sourcing
The Latest
Events & AwardsNov 09, 2026
Here Are the 2027 Gem Award NomineesThese nine individuals and brands are up for a Gem Award in the Jewelry Design, Media Excellence, and Retail Innovation categories.
CrimeNov 09, 2026
Jeweler Pistol-Whipped, $900K in Jewelry Stolen During Home Invasion The incident, which happened in Miami-Dade County, serves as a reminder to jewelers of the dangers of selling and storing jewelry at home.
GradingNov 09, 2026
GIA Acquires Thousands of Gem Specimens With ‘Extraordinary’ InclusionsGIA Analytical Microscopist John Koivula curated the collection of 2,665 crystals, gems, and minerals over a 60-year span.
Brought to you by
DSF Antique Jewelry: Fine Jewelry, Signed Designers, and a World of Rare DiscoveriesWith over 50 years experience in the trade, DSF Antique Jewelry offers quality, craftsmanship, condition, and remarkable variety.
CollectionsNov 09, 2026
Bibi van der Velden’s Alligators Become High JewelryThe “Eclipse” collection, the brand’s first high jewelry line, centers its alligator motif in diamond and spinel jewels.
Weekly QuizNov 05, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsNov 06, 2026
The Spectrum Pieces I Can’t Stop Thinking AboutFrom a Betta fish brooch to a “dragon’s trove” of zircon eggs, here are seven pieces that’ve stuck with Associate Editor Lauren McLemore.
TrendsNov 06, 2026
Pat Pruitt’s DragonFly Earrings Take Flight on Election NightGroundbreaking New Mexico Governor-elect Deb Haaland wore the earrings, our Piece of the Week, when she declared victory on Tuesday.
Brought to you by
How Overnight Mountings’ Bridal Builder Makes Custom Engagement Ring Design Easier to SellWith customization becoming more expected in engagement ring shopping, the Bridal Builder makes the process tangible.
MajorsNov 06, 2026
SNL’s Colin Jost Finds the Perfect Gift in Kay Jewelers’ Holiday AdJost goes on an epic journey, traversing rough seas and encountering a cyclops, to discover the perfect holiday gift.
Supplier BulletinNov 05, 2026
Winning With GCAL 8X®: What’s Working at the CounterSponsored by GCAL by Sarine
SurveysNov 05, 2026
What Retailers Should Know About Holiday Shoppers This YearFrom shrinking budgets to AI elves, here are five takeaways from holiday reports by Bain, Adobe, Mastercard, NRF, and insights from YouGov.
CollectionsNov 05, 2026
Judi Powers, Russell Jones Unleash Joy With New CollaborationThe designers combined their talents for Little Pet Portraits, hand-painted miniatures of our best friends set in a piece of jewelry.
FinancialsNov 05, 2026
Brilliant Earth Continued to Resonate With High-Income Shoppers in Q3Its non-bridal fine jewelry remains the star of the show, recently launching new collections inspired by Elizabeth Taylor and Jane Goodall.
MajorsNov 05, 2026
Ariana Grande Stars In Swarovski’s Holiday Campaign“Joy: The Swarovski Musical” features Ariana Grande as the leading lady in scenes inspired by classic musical montages.
GradingNov 05, 2026
GIA to Offer Next-Day Holiday ServicesThe lab will bring back its complimentary next-day service for some reports starting next week.
CrimeNov 04, 2026
$250K+ in Undeclared Cartier Jewelry Seized at Philadelphia AirportA Pennsylvania woman failed to declare a ring and a bracelet, discarding the boxes and receipts to conceal the purchases, officials said.
FinancialsNov 04, 2026
Pandora’s Q3 Sales Up 7% Amid Focus on DesignNew collections and relevant marketing pushed the company forward, while Pandora’s lab-grown diamond sales continue to lag.
Events & AwardsNov 04, 2026
NYC Jewelry Week 2026 Is the Largest Edition YetThe citywide celebration, slated for Nov. 16-22, is set to host more than 175 events, including live jewelry-making demos.
MajorsNov 04, 2026
Bergdorf Goodman Names New PresidentLanessa Elrod, former president and CEO of Louis Vuitton Americas, has stepped into the role as the retailer celebrates 125 years.
AuctionsNov 03, 2026
Infinity Gauntlet Set With 170+ Carats of Colored Gemstones Up for AuctionA replica of one of the most powerful objects in the Marvel Cinematic Universe, the glove is heading to auction next month in Abu Dhabi.
IndependentsNov 03, 2026
Longtime Jewelry Marketer Arthur Klein Dies at 89Klein, who had his own marketing agency and worked for Gabriel & Co. and Trans American Diamond, is remembered as a kind man.
IndependentsNov 03, 2026
Zadok Jewelers Toasts To 50 Years With Diamond Bracelet GiveawayTo enter the giveaway, locals can purchase a featured beverage from one of eight participating restaurants in Houston and Austin, Texas.
Events & AwardsNov 03, 2026
David Yurman Gem Awards Grant Opens 2027 ApplicationsThe grant recipient will be awarded $50,000 as well as mentoring meetings with executives at David Yurman and other industry executives.
Events & AwardsNov 03, 2026
NAJA, Instappraise Name 2026 Scholarship WinnersThe winners include a non-NAJA member seeking training, a member beginning NAJA courses, and a member becoming a Certified Master Appraiser.
AuctionsNov 02, 2026
197-Carat ‘Romanov Sapphire’ Heads to Sotheby’s GenevaThe rare jewel, which has links to Russia’s Romanov dynasty, is estimated to fetch up to $2 million.
CrimeNov 02, 2026
Customs Seizes More Than 400 Fake Audemars Piguet WatchesIt is one of several seizures of counterfeit jewelry and watches by U.S. Customs and Border Protection officials in Louisville this year.
MajorsNov 02, 2026
Lawrence Bock, Caryl Capeci, Amanda Coleman-Phelps Join JA Board Jewelers of America announced the additions to its board of directors following its annual general meeting, held last week.
