Monthly Diamond Market Update

Welcome to our monthly column focused on the diamond market. Each month, we delve into the latest trends, significant events, and exciting developments within this fascinating industry. Drawing insights from reputable sources such as Rapaport News, IDEX, and others, we offer you a comprehensive and up-to-date overview.

Overview of the Market

In November 2024, the diamond market showed signs of recovery after eight months of consistent declines. A combination of strong pre-Christmas demand and a reduction in the production of processed diamonds interrupted the negative trend, leading to an improvement in prices for certain categories.

Price increases in specific diamond categories:

The RapNet Diamond Index (RAPI™) for 1-carat diamonds saw a modest rise of 0.1%, driven by price increases for higher-quality stones (IF-VVS1), which helped offset the declines observed in the VVS2-VS2 categories. Smaller diamonds, such as those weighing 0.30 and 0.50 carats, saw increases of 1.6% and 1.4%, respectively. However, 3-carat diamonds experienced a slight decrease of 0.3%.

Reduction in supply and its effect on prices:

The supply drop, caused by delays in the full resumption of Indian cutting factories following the Diwali holiday, has driven up prices for the most in-demand round diamonds (D, IF). However, the export of cut diamonds from India remains weak, showing a 23% year-over-year decline in September. Additionally, rough diamond production has been restricted by cuts in sales from De Beers and Alrosa, further helping to stabilize prices.

Outlook for 2025:

Looking ahead, the diamond market is expected to benefit from growing global demand during the holiday season. However, the focus will shift toward stabilizing supply and revitalizing sales in the early months of the new year.

Key Events of November 2024

Price Recovery for Round and Fancy Diamonds: Premium-quality round diamonds weighing between 1.00 and 1.99 carats saw notable price increases, with some categories rising by as much as 3%. Larger stones, ranging from 4.00 to 5.99 carats, also experienced substantial growth, with gains between 1.5% and 4.5%. In the fancy shapes category, elongated, high-quality cuts remained in steady demand, while less popular styles, such as square cushion cuts, continued to see declining sales.
Marketing and Promotional Highlights: De Beers has launched a captivating holiday campaign, bringing back the iconic slogan “A Diamond Is Forever.” This initiative seeks to celebrate natural diamonds and reaffirm their timeless allure amidst growing competition from synthetic alternatives. Discover the fascinating history of this legendary tagline and its enduring impact in this month’s featured article.

Additionally, the Natural Diamond Council (NDC) has initiated discussions with trade associations in Europe, India, and Dubai to establish a $65 million fund dedicated to promotional activities for natural diamonds.

Impact of the Holiday Season and Global Demand: In the United States, demand held steady during the Thanksgiving period, with notable interest in F-H diamonds and VS2-SI2 clarity, especially in sizes of 1.50 carats and above. Across Europe, the demand for diamonds with traceable origins is on the rise, particularly in Italy and France.
Trends in Other Precious Stones: The market for colored gemstones, such as rubies, sapphires, and emeralds, has experienced steady demand, with a modest rise in prices for high-quality gems. Notably, Burmese rubies and Kashmir sapphires have garnered increased attention from collectors and investors.

These events highlight a dynamic November for the diamond market, featuring a price recovery in select categories, focused marketing initiatives, and global demand driven by the holiday season. The stability in the colored gemstone market adds an extra layer of diversity to the broader industry landscape.

Curiosities from the World of Diamonds

When we think of diamonds, we often envision sparkling jewelry. Yet today, these extraordinary gems are making revolutionary strides in high-tech industries, thanks to their unique physical properties. Durable, resilient, and incredibly versatile, diamonds—especially synthetic ones—are transforming key sectors like quantum technology, medicine, and even environmental sustainability. Let’s explore three recent examples that show how the future is literally being carved in diamond:

1. Diamond Wafers for Semiconductors and Quantum Technology

Element Six, De Beers' industrial innovation division, is partnering with the Japanese company Orbray to produce high-quality single-crystal diamond wafers. These wafers are revolutionizing semiconductor technology, offering unparalleled performance.

Unlike traditional semiconductors, diamond-based ones significantly reduce energy consumption and heat generation, making them perfect for advanced applications like artificial intelligence, telecommunications, and data centers. Imagine data centers that use less energy, produce less heat, and operate more efficiently—all thanks to diamonds!

Source: https://en.futuroprossimo.it/2022/04/wafer-diamante-memoria/

2. Diamonds Against Pollution: A Powerful Ally for the Environment

Element Six is also partnering with Lummus Technology, a U.S.-based company, to develop advanced diamond-based electrodes. These electrodes can break down "forever chemicals"—highly persistent substances that accumulate in the environment and are found in everyday items like carpets and non-stick cookware. With the help of diamonds, these harmful chemicals can be safely and efficiently destroyed, opening up new possibilities for a more sustainable future.

3. The Battery That Lasts for Thousands of Years

Imagine a battery that lasts for thousands of years—literally. Thanks to a combination of synthetic diamonds and carbon-14, a radioactive isotope, researchers from the University of Bristol and the UK Atomic Energy Authority have developed a groundbreaking battery that could transform our approach to energy and ignite a true energy revolution.

With an estimated lifespan of 5,700 years, this battery could power medical devices like pacemakers and eye implants. For example, a patient with a pacemaker would never need to replace the battery, eliminating the need for repeated surgeries.

Diamond batteries also have the potential to revolutionize space exploration, powering probes and satellites for decades without maintenance. Picture limitless space missions made possible by a reliable, long-lasting energy source.

The diamond serves as a natural shield against short-range radiation, making these batteries not only durable but safe to handle. This remarkable material extends the battery's life while ensuring its safety.

Source: https://www.ilgiornale.it/news/nuove-frontiere/pronta-rivoluzionaria-batteria-diamante-dura-migliaia-anni-2408296.html

A Future Carved in Diamonds

These examples demonstrate how diamonds are no longer limited to their traditional role in jewelry, but have become essential tools for shaping the future. From environmental sustainability to medicine and space exploration, the potential of synthetic diamonds is unlocking unimaginable possibilities, making their contribution to technology more invaluable than ever.

Feature of the Month

“A Diamond Is Forever” – The Slogan That Shaped History

The phrase "A Diamond Is Forever" is more than just an advertising slogan; it is one of the most iconic campaigns in marketing history. Created in 1947 by Mary Frances Gerety, a copywriter at the advertising agency N.W. Ayer & Son, this simple yet powerful phrase turned diamonds into the ultimate symbol of eternal love.

The Origins of the Slogan

In the late 1940s, the diamond market was struggling. Following the Great Depression and World War II, diamonds were not considered a necessity. De Beers, already an industry leader, faced a critical challenge: to reinvent the diamond as an essential symbol, closely tied to love and commitment.

Mary Frances Gerety, tasked with creating a groundbreaking campaign, came up with the slogan almost by chance. One night, exhausted and under pressure, she wrote the words "A diamond is forever"— a simple yet powerful combination that would go on to reshape the history of marketing.

The brilliance of the idea lay in its simplicity: the diamond, indestructible and eternal, became the perfect representation of everlasting love. This association was reinforced by an unprecedented advertising campaign, filled with romantic imagery, love stories, and a timeless, elegant aesthetic. In 1948, the slogan debuted in an ad, and its success was instant.

Cultural Impact

In the 1930s, fewer than 10% of engagement rings featured a diamond. By 1950, thanks to De Beers' campaign, that number had risen to 50%, and today, over 80% of engagement rings include this precious gem.

The slogan "A Diamond is Forever" has been translated into many languages: in Italian, it became "Un diamante è per sempre"; in French, "Un diamant est éternel"; and in Spanish, "Un diamante es para siempre." This phrase not only shaped the diamond market but also entered everyday language, becoming synonymous with eternity.

The success of the campaign went beyond engagement rings and deeply influenced popular culture. Books, movies, and songs have adopted the phrase as a symbol of eternal love. One famous example is the 1971 James Bond film, "Diamonds Are Forever".

The 2024 Relaunch

De Beers has chosen to relaunch the iconic slogan "A Diamond Is Forever" to promote natural diamonds during the 2024 holiday season. The new global campaign, titled "Forever Present," seeks to highlight the uniqueness, authenticity, and beauty of natural diamonds, distinguishing them from synthetic alternatives.

Natural diamonds are described as "created by the Earth over billions of years" and are linked to values such as rarity and sustainability. The campaign’s imagery is both elegant and modern, while still capturing the romantic essence that made the slogan legendary.

Furthermore, De Beers has invested in initiatives that promote traceability and the ethical sourcing of diamonds, leveraging advanced technologies such as the Tracr platform, which certifies the authenticity of natural diamonds. The message is clear: natural diamonds are not just a luxury, but a timeless symbol that no synthetic gem can match.

A Timeless Legacy

The slogan "A Diamond Is Forever" is not just a successful phrase, but a case study taught in marketing courses around the world. It demonstrates how an advertising campaign can do more than boost sales; it can redefine the meaning of a product and shape global culture.

Even today, the slogan continues to inspire, serving as a prime example of the power of branding and storytelling. A diamond is forever—and so is its lasting impact on our collective imagination.

Conclusions

November 2024 brought encouraging signs for the diamond market, with price stabilization and a rebound in demand, especially as the holiday season approaches. Targeted marketing initiatives, such as the relaunch of "A Diamond Is Forever," highlight the importance of a visionary, future-oriented communication strategy.

With 2025 just around the corner, the outlook is promising. Experts predict a more stable market, driven by consistent demand and innovations designed to strengthen the position of natural diamonds over synthetics.

We conclude by wishing all our readers a joyful holiday season: may the new year be filled with success and bring new opportunities as brilliant as our beloved diamonds.

Stay tuned for more updates and insights into the fascinating world of diamonds!