Monthly Diamond Market Update – July 2025

Welcome to our monthly feature dedicated to the diamond market. Each month, we examine the key global trends, the most significant events, and the dynamics shaping demand, prices, and business strategies. Drawing on reputable sources such as Rapaport News, IDEX, and other specialized channels, we provide you with an up-to-date and reliable overview.

General Market Overview

July 2025 closed with significant turbulence in the global diamond market, driven primarily by the “reciprocity tariffs” imposed by the United States on India. These tariffs refer to the U.S. policy of applying customs duties on imports from countries that levy similar duties on American exports. On July 30, President Donald Trump announced an initial 25% tariff on Indian diamonds, which was doubled to 50% on August 6 in response to New Delhi’s purchases of Russian oil.

The impact on price lists was immediate: the RapNet Diamond Index (RAPI™) for 1-carat round diamonds (color D–H, clarity IF–VS2) fell by 1.4% over the month. Smaller stones experienced sharper declines — down 3.3% for 0.30-carat stones and 4.7% for 0.50-carat stones — while 3-carat diamonds proved more resilient, with only a 0.3% drop. This downward trend was also fueled by oversupply: Indian production, which had been rising from February through June, led to stockpiling, particularly for gems under 1.20 carats, prompting suppliers to cut prices in an effort to stimulate sales.

The IDEX index closed July down 3.26%, following June’s surge of +4.83%, which was driven by a rush to purchase ahead of the implementation of the initial reciprocity tariffs.

In Europe, the situation was less severe: the European Union refrained from imposing tariffs on U.S. diamonds, thereby preserving trade with Antwerp, which had already been impacted by restrictions on Russian diamonds. However, as of August 1, the United States raised reciprocity tariffs on European diamonds from 10% to 15%, placing additional pressure on exports to Belgium’s second-largest market.

Key Events – July 2025

• Escalation of U.S.–India Reciprocity Tariffs
  As noted earlier, within less than a week, the reciprocity tariff on Indian diamonds jumped from 25% to 50%. This prompted wholesalers and distributors to rapidly move inventory into the United States before the measure took effect, generating volatility and temporary price spikes.
• Employment Crisis in the Mining Sector
  Economic challenges and geopolitical tensions triggered large-scale layoffs, surpassing those seen during the 2004–2008 and 2008–2009 crises. De Beers reported an operating loss of $245 million in the first half of 2025, while smaller mining companies cut both production and staff in response to falling demand and mounting price pressure.
• Pressure on Major Mining Corporations
  Russian diamond giant Alrosa saw revenues drop by 24% in the first half of 2025, to $1.568 billion, due to international sanctions, new traceability regulations, and broader instability in key markets.
• Synthetic Diamond Boom
  Greenlab, India’s largest lab-grown diamond producer, acquired over 1,100 new machines, adding to its existing 1,600 units. This expansion boosts its annual production capacity to 2.9 million carats of synthetic diamonds, highlighting the rising popularity of this category, particularly among price-conscious consumers.
• Weak Global Demand
  In the United States, jewelry and watch sales fell by 1.7% in June, ending a 19-month streak of growth. In China, although demand remained sluggish, early signs of stabilization began to emerge.

Diamond World Curiosities

Official Recognition of Flanders’ Historic Diamond-Cutting Tradition

In July 2025, the ancient Flemish art of diamond cutting and polishing was officially recognized as an “intangible cultural heritage.”

Much of the credit goes to master craftsman Lodewyk van Bercken, a native of Bruges, who in the 15th century invented the scaife — a rotating wheel coated with a mixture of diamond dust and olive oil, capable of polishing diamonds with precise symmetry.

This revolutionary tool made it possible, for the first time, to create complex cuts such as the renowned briolette — a drop-shaped form invented around 1475.

This official recognition celebrates a craft tradition passed down through generations, which continues to embody the heart of European excellence in the world of fine jewelry.

The “Smart” Diamond Ring That Connects to Your Smartphone… Without a Ringtone

French startup SPKTRL, founded by Katia de Lasteyrie, has unveiled Light Ring — the world’s first high-tech ring, featuring a 1.5-carat lab-grown diamond set in white gold, which flashes in different colors to signal calls, messages, or notifications silently and discreetly. It is designed for those who wish to stay connected without intrusive interruptions.

With twenty years of experience, Katia de Lasteyrie previously led the innovation division of LVMH’s Watches & Jewelry arm — the French luxury giant behind iconic brands such as Louis Vuitton, Dior, Bulgari, and Tiffany & Co.

The ring offers more than just light signals: through a minimalist app, users can customize colors based on the type of notification (for example, green for family, blue for work, purple for social media) and even adjust the light’s intensity and rhythm according to the urgency of the alert.

Its discreet, minimalist design is rooted in the “quiet tech” concept — technology that respects one’s time, eliminates distractions, and restores control to the wearer — seamlessly combined with fine jewelry craftsmanship. Light Ring is set to launch in the second half of 2026, with prices expected to range between €2,500 and €3,000.

Feature of the Month

Dubai: Challenging the Monopoly of Traditional Diamond Centers

For centuries, the global diamond trade was concentrated in a handful of historic capitals, each with its own clearly defined role. Antwerp, Belgium — with over five centuries of expertise — long held the title of “world diamond capital,” handling up to 80% of the rough diamonds circulating globally. Tel Aviv distinguished itself as a hub of excellence for trade and technological innovation, while Mumbai, home to the massive Bharat Diamond Bourse — the largest diamond exchange in the world — secured an undisputed lead in cutting, processing over 90% of the world’s stones. New York, with its historic Diamond Dealers Club, and Hong Kong, the key gateway to Asian markets, completed this near-oligopolistic system for decades.

However, the past two decades have brought rapid change. Rising from the heart of the UAE desert, a new player has emerged to rewrite the map of the diamond trade: Dubai. Its rise in the sector is not an isolated event but part of a broader transformation that has seen the city evolve, in just a few decades, from a regional port into a global hub for luxury tourism, finance, trade, and commodities. Iconic skyscrapers, cutting-edge infrastructure, and aggressive economic policies have turned Dubai into a strategic crossroads for goods and capital — and diamonds are no exception.

Since 2021, Dubai has officially overtaken Belgium as the leading center for rough diamond trading, with more than $22.8 billion exchanged that year. The growth has been remarkable: up 76% since 2015 and an impressive 83% in a single year between 2020 and 2021. At the heart of this success is the Dubai Multi Commodities Centre (DMCC), a free zone that hosts more than 1,300 companies in the sector and the Dubai Diamond Exchange, located in the Al Mas Tower (also known as the “Diamond Tower”) and home to the largest diamond auction room in the world, capable of accommodating over 200 buyers at once.

Several factors are driving this surge. First and foremost is Dubai’s strategic geographic position — midway between major diamond-producing regions (such as Africa, Russia, and Canada) and leading consumer markets (Asia and Europe), with direct air links to all key hubs. On the fiscal side, the UAE has offered unmatched advantages: since 2018, the 5% VAT on wholesale transactions has been eliminated, and companies enjoy a preferential tax regime with exemptions guaranteed for decades. Access to credit is also more flexible compared to markets like Antwerp, where banks have progressively tightened financing conditions.

However, this rapid growth is not without its controversies. Some observers, particularly in Europe, question the level of compliance and transparency in Dubai’s transactions, pointing to differences in due diligence standards compared to historic centers. As early as 2013, a Financial Action Task Force report highlighted discrepancies between declared import and export values for rough diamonds, raising suspicions of irregularities. Moreover, while Dubai has now surpassed Antwerp in rough diamond trading, the Belgian city still retains its lead in polished stones, supported by historically entrenched volumes and expertise.

For Europe, this shift represents both a challenge and an opportunity. On one hand, the gradual redirection of trade flows toward the Gulf could diminish the significance of Europe’s traditional centers; on the other, a more diversified market could boost competition and offer more favorable conditions for traders and investors.

The outcome, in short, is far from settled. But one fact is clear: the era of monopoly held by historic diamond hubs is drawing to a close, and the new chapter sees Dubai stepping into the spotlight — determined to combine luxury, innovation, and strategic vision to secure its place in the centuries-old story of the diamond trade.

Conclusions

July 2025 marked a month of major upheaval for the global diamond market, driven primarily by reciprocity tariffs that reshaped trade flows and placed pressure on both producers and distributors. The combination of geopolitical tensions, weakening demand, and increased supply — particularly from India — pushed prices downward, while major mining companies faced shrinking margins and painful restructuring measures. At the same time, synthetic diamonds continued to gain ground, supported by competitive pricing and steadily expanding production capacity.

Within this challenging environment, there were also stories highlighting the sector’s resilience and innovation: from the official recognition of the Flemish diamond-cutting tradition — a symbol of European excellence — to Dubai’s determined push to establish itself as a new global hub, challenging a centuries-old monopoly.

In such a complex and rapidly evolving market, knowing the true value of your diamonds and jewelry is more important than ever. Auctentic offers free, professional valuations carried out by industry experts, with the guarantee of the best market prices and fast payments should you decide to sell.

Want to find out how much your diamonds or jewelry are worth?

Click here for a free valuation that will help you make informed decisions at the right time.

Get started