Monthly Update on the Diamond Market – December 2024

Welcome to our monthly column dedicated to the diamond market. Each month, we explore the key trends, most significant events, and the latest developments in this fascinating industry. Drawing on authoritative sources such as Rapaport News, IDEX, and others, we provide you with a comprehensive and up-to-date overview.

Overall Market Overview

In December 2024, the diamond market demonstrated a degree of stability, with holiday sales meeting the sector’s more modest expectations. However, the RapNet Diamond Index (RAPI™) reveals an overall decline of 23% for one-carat diamonds at the start of the new year, reflecting a market still grappling with challenges, particularly the growing competition from synthetic diamonds and a reduction in demand from China.

Price movements varied across categories: while diamonds weighing 0.30 and 0.50 carats saw increases of 1% and 0.8% respectively, one-carat diamonds experienced a slight decline of 0.5%, and three-carat diamonds saw a modest rise of 0.2%. Diamonds with SI clarity, which are excluded from the RAPI index, suffered a more pronounced drop, falling by 2.4% in December 2024 and 7.4% over the course of the year.

The production of cut diamonds remained constrained, reflecting a cautious outlook within the market. The Rapaport price list, updated on January 3, 2025, reveals notable declines in several categories, particularly for one-carat round diamonds (D-H, IF-VS2), which experienced a 13% decrease in value throughout 2024.

© Copyright 2025, Rapaport USA Inc.  

Key Events of December 2024

• Recovery in Round and Fancy Cut Prices: Round diamonds continued to perform better than fancy cuts, which encompass non-traditional shapes such as oval, marquise, and cushion. High-quality stones ranging from 1.00 to 1.24 carats (D, IF-VVS2) experienced price increases between 1% and 3%. Larger diamonds, weighing between 4.00 and 4.99 carats, also benefited from significant gains, ranging from 1% to 3.5%. Among fancy cuts, elongated shapes like the marquise and oval maintained steady demand, while cushion cuts continued to show signs of weakness.
• A Rebound in U.S. Sales, Yet Caution Prevails for the Future: Retail jewelry sales in the United States experienced a 4% increase during the holiday season (November 1 – December 24), according to Mastercard SpendingPulse. Despite this positive performance, both retailers and wholesalers remained prudent, focusing on sales rather than replenishing inventories, while awaiting more definitive indicators of market conditions for 2025.
• Crisis in the Rough Diamond Market: The rough diamond sector continued to be marked by a high level of uncertainty in terms of supply, demand, and pricing. This situation, combined with a reduction in production, has put additional pressure on producers' margins.
• Geographic Differences in Demand: While the Chinese market showed some weakness ahead of the Lunar New Year, the Indian market remained strong during the traditional wedding season. In Europe, particularly in Italy and France, there has been a growing interest in diamonds with traceability of origin, a feature that is becoming increasingly important to consumers.
• Reevaluation of Promotional Strategies: At the close of a challenging year, the industry has strengthened its marketing campaigns aimed at promoting natural diamonds, in an effort to counter the growing popularity of synthetic diamonds and highlight gems with traceable origins. These initiatives include new global collaborations designed to build consumer trust and stimulate demand.

© Copyright 2024, Rapaport USA Inc.  

Luxury, Glamour, and Iconic Jewelry at the 2025 Golden Globes

On January 5, 2025, the 82nd edition of one of the most prestigious events of the year took place: the renowned Golden Globe Awards, celebrating the best films and television shows of the season. This enchanting evening not only marked the beginning of the new year but also officially kicked off the awards season, which will culminate with the highly anticipated Academy Awards on March 3. But what were the most memorable pieces of jewelry from this exceptional night? Let’s explore together.

The Red Carpet Stars and Their Iconic Jewelry

• Pamela Anderson wore a dress gown by Oscar de la Renta, complemented by black satin evening gloves. For the event, the actress selected sustainable jewelry from Pandora, proving that luxury, elegance, and ethics can coexist harmoniously. She wore a customized necklace featuring a stunning 66 carats of diamonds, triple drop earrings weighing nearly one carat each, and five tennis bracelets, totaling 225 diamonds.

It is worth noting that Anderson chose a natural look, appearing without makeup and without the assistance of a stylist team.

• Nicole Kidman wore a bold silver backless gown by Balenciaga. To complete her look, she chose jewelry from Boucheron, including white gold dangling earrings set with diamonds and tanzanites, while a vintage 1920 Omega watch added a touch of retro charm to her ensemble.

• Ariana Grande lit up the red carpet at the 2025 Golden Globes in a custom-made Giambattista Valli gown, adorned with a voluminous lavender tulle train and Swarovski crystals. To complement her dream look, Ariana wore jewelry by Harry Winston. Among her pieces, a cascading necklace with round and pear-shaped diamonds stood out, totaling over 50 carats, paired with matching drop earrings and a 15-carat diamond tennis bracelet on her wrist.

• Angelina Jolie opted for a silver gown by Alexander McQueen, adorned with intricate silver fringe details. To complete her sophisticated look, the actress wore elegant diamond-studded drop earrings and a ruby ring.

• Demi Moore showcased a Giorgio Armani Privé gown: a strapless champagne-colored design, embellished with Swarovski crystals and featuring a structured corset with geometric details. For jewelry, the actress turned to the timeless elegance of Cartier, wearing drop earrings, a matching bracelet, and a particularly striking ring.

The men were no less impressive, showcasing bold and innovative jewelry that marks an evolution in the world of men's accessories.

• Timothée Chalamet sported an elegant black suit by Tom Ford, enhanced with refined Cartier accessories, including a Reflection de Cartier bracelet in white gold and diamonds, and a white gold ring featuring onyx and diamonds, also by Cartier. To complete the look, he added a slender blue silk scarf, reinforcing his sophisticated and contemporary style. 

• Colman Domingo, in a Valentino suit, showcased a peacock feather brooch by Boucheron, a pinky ring encrusted with diamonds, and a leopard-shaped earring with emerald eyes.

• Tyler James Williams paired his Dolce & Gabbana suit with minimalist yet refined jewelry by Anita Ko, adding a contemporary touch to his look.

The 2025 Golden Globes highlighted how the world of jewelry is evolving: both men and women are choosing bold and creative accessories that celebrate individuality, craftsmanship, and sustainability all at once.

The Shadow of Trump on the Global Diamond Market

The year 2025 begins with a crucial uncertainty for the global diamond market: the re-election of Donald Trump to the White House. The United States, which accounts for over 50% of global demand for diamond jewelry, has long been the sector's barometer. Any shift in U.S. economic and trade policies could trigger a global domino effect, impacting the production, distribution, and purchase of precious stones. But what are the risks and opportunities this new administration could bring?

The First Term: A Jolt to the System

Between 2017 and 2021, the Trump presidency redefined the rules of global trade, leaving a profound impact on the diamond market. Protectionist policies, particularly the "trade war" with China, led to the imposition of significant tariffs on imported goods, including jewelry and polished diamonds.

The consequences were not long in coming:

• An increase in costs: U.S. retailers faced rising prices, which were passed on to consumers, leading to a decline in demand for luxury goods, especially those processed in China.

• A struggling Asian market: Trade tensions slowed demand in China, one of the world’s most dynamic markets, and the ripple effect spread across the rest of Asia, reducing the flow of polished diamonds to this key region.

• Shifts in the supply chain: India and Vietnam stepped in to fill the gap left by China in diamond processing, but with longer adjustment periods and higher costs.

• The "Buy American" initiative: The promotion of domestically sourced diamonds resonated with a niche group of "patriotic" consumers, yet it wasn’t enough to offset the overall decline in demand.

Despite these challenges, the first term revealed a surprising resilience within the sector. High-quality stones and ethically traceable diamonds continued to attract steady demand, particularly from investors.

Between the Past and Present: What Has Changed?

Following Trump, the Biden administration endeavored to restore more stable trade relations, easing some of the tariffs imposed and fostering international cooperation. This approach sparked a moderate recovery in the market, yet new factors have emerged, transforming the landscape:

• The rise of synthetic diamonds: In recent years, lab-grown diamonds have steadily captured a growing share of the market, particularly among younger, cost-conscious consumers who prioritize sustainability.
• An increasing focus on traceability: The demand for gemstones with certified origins has soared, positioning Europe as a leader in championing ethical practices.
• The pandemic's impact: COVID-19 expedited the digital transformation of the industry, making online sales a cornerstone of the market, while also highlighting the disparities between global markets.

The Return of Trump: A New Challenge for the Industry

With his second term, Trump promises to reignite the "American Dream" through new economic policies. However, the global context of 2025 is far more complex than it was in 2017:

• Intense competition: Natural diamonds face growing competition from synthetic gemstones.
• Geopolitical tensions: China, the United States' main economic rival, could once again be affected by protectionist policies. This scenario risks destabilizing Asian demand, one of the sector's key growth sources.
• Global supply chain under pressure: India, which cuts and polishes most of the world's diamonds, may face challenges if Trump's policies make access to Western markets more costly.
• Stronger Europe: Europe now plays a crucial role, with consumers increasingly concerned with sustainability and the provenance of diamonds, which could drive the industry to invest more in ethical practices and transparency.

A Market Caught Between Promise and Uncertainty

The re-election of Trump presents a significant uncertainty for the global diamond market. On one hand, it could offer an opportunity to reignite American luxury and boost domestic demand. On the other, it may heighten geopolitical tensions and deepen regional disparities.

Can the United States drive the global market forward, offsetting losses in Asia?
Will environmental policies and a growing consumer consciousness push the industry toward a more sustainable future?

2025 promises to be a pivotal year for the diamond industry. Like the gemstones themselves, the sector will need to endure pressure, adapt, and transform challenges into new opportunities.

With these questions hanging in the balance, the real challenge remains: will the diamond market emerge brighter, or will it crack under the weight of the uncertainties ahead?

Conclusions

In December 2024, the diamond market showed signs of recovery, though still grappling with challenges like the rise of synthetic diamonds and a slowdown in demand from Chinese consumers. While holiday sales met expectations, the industry continues to face pressure on margins and limited production. The landscape remains shaped by economic uncertainty, geopolitical factors, and an increasing focus on sustainability and traceability.

The re-election of Donald Trump to the U.S. presidency stands as a critical moment for the diamond sector, with potential shifts in trade policies, domestic demand, and international dynamics. The future of the diamond market appears to be at a crossroads, balancing opportunities for recovery with global challenges that call for adaptability and a growing commitment to sustainability.

Stay tuned for more updates and insights as the world of diamonds continues to evolve!