Monthly Diamond Market Update – August 2025

Welcome to our monthly column dedicated to the diamond market. Each month, we explore key global trends, noteworthy developments, and the dynamics shaping demand, pricing, and commercial strategies. Drawing on trusted sources such as Rapaport News, IDEX, and other industry-specific channels, we provide you with a consistently up-to-date and reliable overview.

General Market Overview

In August 2025, the diamond industry continued to grapple with deep-rooted structural challenges that have been affecting the global market for several months. The reciprocal tariffs introduced by the United States against India remained a major source of disruption in trade flows. As of August 1st, a 25% duty was imposed on Indian imports, which was then doubled to 50% on August 27th in response to New Delhi’s ongoing trade relations with Russia.

This escalation had an immediate impact on pricing and business strategies across the sector. Many companies rushed to ship goods to the U.S. before the new tariffs took effect or sought alternative trade routes with lower customs duties. As a result, the price gap between diamonds already present in the U.S. market and those still in India widened to as much as 16%—significantly above the historical average of 10–12%.

On the pricing front, the RapNet Diamond Index (RAPI™) for 1-carat round diamonds (D–H color, IF–VS2 clarity) declined by 1.1% over the month. Smaller stones experienced even sharper drops, with 0.30-carat diamonds down by 3.8% and 0.50-carat stones falling by 3.9%. In contrast, larger gems showed unexpected resilience—3-carat diamonds posted a modest increase of 0.4%.

The IDEX index also recorded a decline, highlighting more pronounced drops in round cuts compared to fancy shapes. In summary, August confirmed an increasingly evident trend: the market is favoring larger, high-quality stones, while smaller, more commercial categories continue to be penalized — affected by overproduction and weakening demand.

Key Events – August 2025

• Potential Tariff Relief from Trump Administration

The industry is cautiously optimistic about a possible "window of opportunity." In recent months, the Trump administration has postponed the enforcement of certain tariffs in an effort to negotiate short-term trade deals, raising hopes for potential adjustments in the diamond sector as well. The World Diamond Council is actively advocating for an exemption on natural stones, arguing that these tariffs function as a consumption tax—impacting consumers and the retail market more than the industry itself.

Should Trump decide to suspend or scale back the tariffs, the market could see a swift rebound in trade activity and a boost in confidence among both operators and investors.

• Protests and Rising Tensions in Surat, India

The city of Surat—globally recognized as the epicenter of diamond cutting—has been severely impacted by the newly imposed U.S.–India reciprocal tariffs. A sharp decline in orders from the United States has left the Surat Diamond Bourse largely deserted: out of 4,700 offices, fewer than 250 remain operational.

With falling wages and an estimated 150,000 to 200,000 jobs at risk, social unrest is mounting. In response, some exporters have already begun shifting portions of their production to countries like Botswana, which face less punitive tariff regimes.

• Worsening of Antwerp’s Structural Crisis

Antwerp’s diamond hub continues to show clear signs of structural decline. In 2023, trade volumes plummeted by 25%, falling to €23.7 billion. The EU’s ongoing ban on Russian diamonds—previously accounting for 35% of imports—is still weighing heavily on overall volume. Meanwhile, Dubai is steadily consolidating its position as the new dominant player in the global diamond trade.

• Postponement of EU Traceability Regulations

The European Union has once again delayed the implementation of its mandatory traceability system for rough diamonds, pushing its enforcement date to January 1, 2026. This marks the second postponement, following the G7’s extension in 2023, and reflects the significant challenges of enforcing stricter regulations in an already fragile market.

Diamond Curiosity

• When Peanut Butter Becomes as Precious as a Diamond

In August 2025, a fascinating study made headlines once again: it really is possible to turn peanut butter into diamonds! German geophysicist Dan Frost of the Bayerisches Geoinstitut demonstrated that by subjecting peanut butter to pressures 1.3 million times greater than atmospheric pressure and temperatures reaching 2,000°C, tiny crystallized diamonds can be formed.

The secret lies in the carbon content of peanut butter. When exposed to the same extreme conditions found in the Earth’s mantle, that carbon restructures itself into diamond. However, the process is far from practical—producing a single 3-millimeter diamond (smaller than a 0.25-carat brilliant) takes three full weeks.

So, before you rush to the grocery store and stock up on peanut butter dreaming of glittering riches, you may want to reconsider.

• Taylor Swift’s Dream Engagement Ring Revives Interest in Vintage Diamonds

On August 26, 2025, singer Taylor Swift and football star Travis Kelce announced their engagement on Instagram—capturing global attention not only for the big news, but also for the breathtaking ring the pop icon is now wearing.

What makes the ring truly exceptional isn’t just its impressive size (the center stone weighs approximately 8 carats), but its unique character: the diamond is an “old mine” cut, a type that is exceedingly rare today. These diamonds were hand-cut in the pre-industrial era and designed specifically to sparkle under candlelight, creating a romantic and refined glow that’s worlds apart from the brilliance of modern cuts.

Experts estimate the ring’s value to be between $400,000 and $1.2 million, but its true worth lies in the message it conveys. In an age dominated by lab-grown diamonds and standardized industrial cuts, Swift’s choice represents a return to craftsmanship and individuality. Unsurprisingly, this one-of-a-kind jewel is already shaping jewelry trends, with many brands preparing to launch vintage-inspired collections for the upcoming season.

• When Music Costs as Much as an Apartment: Jacob & Co’s $139,000 Diamond Headphones

At the end of August 2025, aboard a private yacht in the port of Monaco, the world of luxury witnessed the unveiling of what may be the most extravagant gadget of the year: diamond-studded headphones by Jacob & Co, created in collaboration with Loewe Technology—the storied German high-end electronics brand known for its iconic televisions and audio systems for over a century.

The headphones are available in two versions:

1. The "Ice Diamond" ($139,000), featuring 456 brilliant-cut diamonds totaling 12.47 carats set in 14-karat white gold.

2. The "Noir Rainbow" ($116,000), adorned with 15.97 carats of multicolored sapphires mounted on rose gold.

To put the price into perspective: the base model of the Loewe Air One headphones—without the Jacob & Co embellishments—sells for around $1,400. Add diamonds and precious stones, and the price skyrockets more than 100-fold. Only ten pairs will be produced worldwide (five of each model), making them true collector’s items for a privileged few.

Beyond the dazzling gemstones, these headphones also boast cutting-edge features: active noise cancellation, an AI-powered assistant for real-time translations, and an impressive 65-hour battery life. As Benjamin Arabov, CEO of Jacob & Co, stated:
"This collaboration represents far more than just a product launch—it's the beginning of a new chapter, where art and technology come together to redefine the concept of wearable luxury."

Feature of the Month

• The World’s Most Iconic Diamond Mines: A Journey Through the History and Future of the World’s Most Precious Gems

Diamonds have captivated humanity for millennia—symbols of power, wealth, and eternal love. Their path from deep within the Earth to the glass cases of modern jewelry boutiques is a story shaped by geology, history, and culture. For centuries, the fate of these rare gems has been tied to a handful of legendary mines, each with its own unique geological traits and far-reaching influence on the global economy and collective imagination.

This month, we invite you on a journey through time and across continents to discover the mines that have defined—and continue to shape—the story of the diamond.

India: The Birthplace of Diamonds (4th Century BCE – 18th Century)

The recorded history of diamonds begins in India some 2,500 years ago. Along the riverbeds of the Krishna, Godavari, and Penner in the Golconda region, alluvial diamonds were extracted—small crystals naturally carried downstream by the slow, patient force of erosion over thousands of years.

This geological “natural selection” washed away the weaker stones, leaving behind only the purest and most resilient crystals. It’s no coincidence that the diamonds from Golconda — such as the Koh-i-Noor (now part of the British Crown Jewels), the Hope Diamond, and the Regent Diamond — are still regarded as some of the clearest and most flawless gems ever discovered.

For centuries, India remained virtually the sole known source of diamonds. Arab traders, and later European merchants, brought these gems westward, where they quickly became emblems of prestige and power. But by the 17th and 18th centuries, the once-rich Golconda mines began to dwindle — setting the stage for a global quest to uncover new diamond sources across the world.

The Koh-i-Noor, set into the Maltese Cross of the British Crown, is one of the most iconic diamonds in the world	The Hope Diamond on Display at the Smithsonian Museum in Washington	The Régent Diamond, One of the Treasures of the Louvre Museum in Paris

South Africa: The Diamond Industry’s Industrial Revolution (Since 1867)

The second half of the 19th century marked a turning point in diamond history. In 1867, a young boy discovered a sparkling stone on the banks of the Orange River in South Africa. That single find led to the birth of the Kimberley mine, renowned for its enormous crater—the Big Hole—dug almost entirely by hand by tens of thousands of laborers.

But Kimberley was significant not only for the volume of diamonds it produced—it also revealed the true origin of diamonds to the world. These were not merely river-carried crystals; they came from kimberlite pipes, ancient volcanic channels that transported diamonds from the Earth’s mantle to the surface.

This discovery revolutionized the mining industry, which from that point on began actively searching for diamonds in primary kimberlite sources. South Africa quickly became the new global hub for diamond production.

Though historic mines like Kimberley have since been depleted, the country remains a major player. The Cullinan Mine (formerly known as the Premier Mine) is still in operation and is famed for producing rare blue diamonds, as well as the legendary Cullinan Diamond — discovered in 1905. Weighing in at a staggering 3,106 carats in its rough form, it remains the largest diamond ever found and now forms part of the British Crown Jewels.

Australia: The Argyle Mine Saga (1983–2020)

After more than a century of African dominance, a new player emerged on the global diamond scene: Australia. In 1979, in a remote area of Western Australia, the Argyle mine was discovered and went into full production by 1983.

Unlike Kimberley, Argyle was not a kimberlite mine but a lamproite deposit—a rare volcanic rock that fosters the formation of diamonds with exceptional colors. The mine accounted for around 90% of the world’s supply of pink diamonds — the rarest and most coveted of all — as well as stones in warm "champagne" and "cognac" hues.

For nearly four decades, Argyle stood as the world’s leading source of colored diamonds. Since its closure in 2020, pink diamonds have become even more valuable, fetching record-breaking prices at international auctions.

Russia: Siberia’s Diamond Giants (1954–Present)

In the 1950s, the discovery of vast diamond reserves in Yakutia, Eastern Siberia, once again redrew the map of the global diamond trade. The first to be developed was the Mir mine in 1954 — its crater so vast, it can be seen from space.

Today, Russia is the world’s top diamond producer by volume, with major mines such as Udachnaya, Jubilee, and Nyurba. Unlike the high-clarity stones from Golconda or Botswana, Russian diamonds are typically smaller (between 0.5 and 1 carat), due to centuries of erosion and natural fracturing. A significant portion of the output is used for industrial purposes, but the sheer volume of production ensures Russia’s dominant role in the industry.

The closure of the Mir mine in 2017, following a tragic accident, marked the end of one of the 20th century’s most iconic mining operations — but it did not shake Russia’s leadership in the diamond sector.

Canada: The New Diamond Eldorado (1991– Present)

Canada is the youngest among the world’s major diamond-producing nations. Until the early 1990s, few would have imagined that the frozen Arctic tundra held such immense treasures. But in 1991, the kimberlite pipe at Point Lake was discovered, leading to the opening of the Ekati mine in 1998 and the Diavik mine in 2003.

These deposits quickly propelled Canada into the ranks of the top global producers. Canadian diamonds are highly prized for their exceptional purity and transparency — qualities attributed to the fact that the crystals remained preserved in permafrost for millions of years under ideal conditions.

The Diavik mine, built on an island in the middle of Lac de Gras, is a remarkable feat of engineering: part of the lake had to be drained using a massive dam to allow mining operations to begin. Today, Diavik is nearing the end of its lifecycle, with closure expected between 2025 and 2026, while Ekati is projected to remain active until around 2030.

The Future of Diamond Mining

Today, many of the world’s historic mines have either closed or are approaching the end of their lifespans. Argyle has ceased operations, Mir is no longer active, and even the major deposits in Africa and Canada have a projected production horizon limited to a few more decades.

For this reason, the diamond industry is shifting its focus:

• New discoveries in Africa, in countries like Angola, Namibia, and Guinea, which are emerging as key players in a new diamond rush.

• Increasingly deep underground mining, a costly but necessary solution to extend the life of existing deposits.

• Rising interest in lab-grown diamonds, which — while lacking the allure of natural rarity — offer answers to growing demand for sustainability and affordability.

Yet one fundamental truth remains unchanged: natural diamonds are a finite resource, formed billions of years ago and impossible to recreate in nature. Every stone that sparkles today in a ring or a piece of high-end jewelry is a one-of-a-kind fragment of Earth’s history—and it is precisely this rarity that makes them so coveted and valuable.

Conclusions

August 2025 reaffirmed the persistent challenges facing the diamond market. The escalation of U.S.–India tariffs—from 25% to 50% in just a few weeks—further strained global trade flows, hitting Surat’s manufacturing hub particularly hard and compressing margins across the industry. In Europe, the postponement of the traceability mandate to 2026 delays once again a long-awaited but complex reform, while Antwerp continues to lose ground to Dubai, which is rapidly solidifying its role as the new global diamond hub.

Market trends for August reveal an increasingly stark polarization: large, high-carat stones are holding steady or even appreciating slightly, while smaller, more commercial diamonds are seeing significant price drops — driven by oversupply and weakened demand.

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