Auctentic Diamond Report

Welcome to the inaugural issue of the Auctentic Diamond Report. Our goal is to provide insight into the diamond, gemstone, fine jewellery, and luxury watch markets, helping you make more informed decisions about the valuables you own, buy, or sell.

At Auctentic, we believe good advice starts with understanding the market. Whether someone is looking to sell an inherited diamond, a vintage watch or a jewellery collection, every situation is different. Sometimes selling makes sense. Sometimes waiting is the better decision. Our role is to help clients understand their options and make the decision that is right for them.

This report is an extension of that approach. Inside, you will find an overview of the market and the key trends shaping values today, including:

• The State of the Diamond and Jewelry Market
• The European Perspective
• Top-End Auction Resilience
• Vintage Gains Momentum
• Changing Consumer Attitudes: Jewellery as an Investment and Collectable

We hope you find this report informative, and that it gives you a clearer understanding of the market. We also hope it inspires conversation. If you have any questions, comments or would simply like to discuss the market, my team and I are always happy to hear from you.

Warm regards,

Simon Namdar,  Cofounder, Auctentic

State of the Global Diamond and Jewelry Market

The diamond and jewellery industry is impacted by both broader macroeconomic forces and industry-specific developments. In that context, inflation in the United States and the continued rise of lab-grown diamonds are among the major factors shaping the market in 2026.

Retail Demand Is Becoming Increasingly Polarized

The jewellery retail segment is bifurcating between higher-value and lower-price products in what is referred to as the industry's K-economy.

Middle-income households, which constitute the core US jewellery consumer, continue to feel the pressure of the higher cost of living. At the same time, jewellers have positioned lab-grown diamonds as a more affordable alternative, capitalizing on the higher margins they have historically offered despite their continued decline in value.

Currently, lab-grown diamonds account for an estimated 50% of diamond engagement rings sold by volume, according to data firm Tenoris. By value, they represent 15% to 20% of the market.

Still, overall jewellery sales continue to rise. They increased 5% in 2025, with units sold declining 6% and the average transaction value up 11%, according to The Edge Retail Academy. Similar trends have continued in 2026, with higher average transaction values offsetting a decrease in unit sales.

Inflation Is Reshaping Jewelry Purchasing Behaviour

Two factors have contributed to the rise in average transaction value: the strength of the high-end jewellery segment and inflation.

Jewellers absorbed part of the sharp increase in gold prices and the higher tariff costs that took effect over the past year, while passing the rest on to consumers. For example, US tariffs on Indian imports, the largest supplier of diamonds and jewellery, climbed as high as 50% during 2025 before falling to 15% under a new trade agreement. The changing trade policy added another layer of uncertainty to the global jewellery supply chain. 

Gold prices stood at around $4,060 per ounce in late June, up 23% from a year earlier. Prices retreated during the first half of 2026 after reaching a record high of $5,289 per ounce in January.

The Consumer Price Index (CPI) for jewellery in the US was up 22% in May, since the beginning of 2024, according to the Department of Labor Statistics.

Jewelry prices rose far faster than overall inflation, underscoring the pricing pressure facing consumers.

Consumers are therefore paying more for the same piece of jewellery than they would have a year earlier. At the same time, the overall rise in the cost of living has made middle-income households more cautious about discretionary spending, leading many to delay purchases or trade down to lower-priced products such as lab-grown diamonds.

Premium Jewelry Continues to Outperform

In contrast, the high-end jewellery segment remains a bright spot for the industry, supported by strong branding, exceptional craftsmanship, and effective storytelling.

Selected luxury groups reported:

• Richemont sales rose 5% to EUR 22.42 billion ($25.43 billion) in the fiscal year ended March 31. 
• LVMH watches and jewellery sales slid 1% to EUR 10.49 billion ($11.90 billion) in 2025.
• Kering Jewelry revenue grew 8% to EUR 935 million ($1.06 billion) in 2025.

At the same time, larger commercial jewellers are pivoting toward higher-value products within selected brands in their portfolios.

Signet Jewellers, the largest jeweller in the US, reported continued strength in engagement rings priced above $5,000 and is positioning Blue Nile further upmarket. Hong Kong-based Chow Tai Fook launched its first high jewellery collection in 2025 to capitalize on growing demand for Chinese-designed luxury jewellery. 

Together with a similar shift among top-tier independent jewellers, these strategies reflect a broader industry focus on higher-value products and the premium segment.

Luxury Growth Is Becoming More Selective

Typically, an improvement or decline in retail demand has an amplified impact further up the pipeline, first on polished diamonds and then on rough. Such is the influence of demand trends from one segment to the next.

The bifurcation of the retail jewellery market is therefore having a profound effect on the rest of the diamond pipeline, not only because demand for key categories has weakened, but also because fewer units are being sold.

Since smaller commercial diamonds account for the largest share of unit sales, a decline in volume disproportionately reduces demand for the rough that produces those goods.

The impact is evident in India, the world's largest diamond manufacturing centre. Accounting for an estimated 80% to 85% of global polished production, its rough imports and polished exports are a strong barometer of global diamond trading activity.

During the first five months of 2026:

• Rough imports fell 29% year on year to $3.61 billion. 
• Polished exports declined 10% to $5.04 billion. 

The changing demand profile has put significant pressure on companies focused on lower-value categories, prompting many manufacturers to shift toward higher-value goods or find new ways to differentiate their products.

Mining companies have far less flexibility, however, since they cannot choose the size or quality of the diamonds they recover. As a result, demand for rough that produces polished diamonds of 2 carats and above strengthened during the first half of 2026, keeping prices firm, while smaller and lower-quality goods remained volatile and price sensitive. That mirrors the polarization seen at retail, where affluent consumers continue to support demand for larger, higher-value diamonds.

While larger goods remained stable, smaller polished diamonds showed only tentative signs of recovery, with the Rapaport Trade Diamond Index (RAPI) for 0.30-carat polished diamonds up 3.3% between January and May, although it remained 27.6% below its level a year earlier as of June 1.

The result is an increasingly segmented supply chain, in which value is concentrated in a narrower range of products while much of the commercial market continues to struggle.

The European Perspective

Bain & Company, in its annual Global Luxury Report, described Europe as one of the weaker regions in the luxury sector during the first half of 2026. That reflects softer international tourism, weaker local demand, and the effects of geopolitical uncertainty. Spending on the continent showed signs of improvement during the second quarter as American, Chinese, and Middle Eastern visitors gradually returned.

Currency is another factor to consider. After appreciating more than 12% against the US dollar during 2025, the euro weakened modestly during the first half of 2026, making European assets more affordable for dollar-based buyers while reducing the purchasing power of European collectors abroad. Exchange rates are not the primary driver of demand, but they can influence cross-border acquisitions, auction participation and pricing for internationally traded diamonds, jewellery, and watches.

Beyond these broader market trends, the Geneva jewellery auctions provided an important European data point during the quarter. Demand remained concentrated in exceptional diamonds, coloured gemstones, and signed jewellery, reinforcing the continued appeal of high-quality assets despite broader economic uncertainty.

Top-End Auction Resilience

The high-end jewellery market has remained resilient in the first half of 2026, as outlined in Section 1 of this report. The major auction houses reinforced that trend, with demand for exceptional diamonds continuing to outperform the broader market.

Sotheby's High Jewelry sales and Christie's Magnificent Jewels auctions held across Hong Kong, Geneva, and New York during the first half of 2026 delivered strong results, underscoring sustained demand for rare diamonds, exceptional jewellery and luxury watches among collectors and affluent buyers.

Sotheby’s Hong Kong High Jewellery Sale (April 24) 

• Total sale: HKD 256.9 million ($32.8 million).
• Sell-through rate: 89% by lot.
• Top lot: 28.88-carat, pear-shape, D-colour, Internally Flawless, “Jwaneng 28.88” diamond sold for HKD 21 million ($2.7 million). 

“What truly electrified our salesroom was the international appetite for signed and vintage jewellery, elaborating collector's sophisticated taste.”

Stewart Young, Sotheby’s Head of Jewelry, Asia

Sotheby’s Geneva High Jewelry Sale (May 12)

• Total sale: CHF 23.4 million ($30.1 million).
• Sell-through rate: 93% by lot.
• Top lot: Pair of unmounted round brilliant diamonds – 18.38-carat, D, Flawless and 18.38-carat, D, IF – sold for CHF 2.5 million ($3.3 million). 

“This has been a strong season for us thus far, with such an engaged global collectors’ base, clearly in the mood to acquire exquisite jewellery.”

Jessica Wyndham, Sotheby’s Head of High Jewelry, Geneva

Christie’s Geneva Magnificent Jewels Sale (May 13)

• Total sale: CHF 51.9 million ($66.5 million).
• Sell-through rate: 99% by lot.
• Top lot: The Ocean Dream diamond - 5.50-carat, triangular cut, fancy vivid blue-green diamond of 5.50 carat sold for CHF 13.6 million ($17.4 million).

“The market for top quality jewels and gemstones is exceptionally strong.”

Max Fawcett, Christie’s Global Head of Jewellery

Christie's Hong Kong Magnificent Jewels (May 26)

• Total sale: HKD 581.5 million ($74.2 million).
• Sell-through rate: 90% by lot.
• Top lot: The Ethereal Jadeite Necklace, comprising 61 perfectly matched jadeite beads, sold for HKD 200.2 million ($25.5 million).

Christie’s New York Magnificent Jewels (June 9)

• Total sale: $49.7 million.
• Sell-through rate: 100% by lot.
• Top lots: The Azure Blue, a 31.62-carat, pear-shaped, fancy blue, VVS1-clarity diamond, sold for $8.4 million. A 5.04-carat, marquise-shaped, fancy vivid blue, VVS2-clarity diamond fetched $8.2 million.

“From rare blue diamonds to extraordinary sapphires and rubies, the strength of demand across categories, particularly colored stones, underscores the global enthusiasm for jewels of beauty, rarity, and provenance.”

Claibourne Poindexter, Christie’s Head of Jewellery, Americas

Sotheby’s New York High Jewelry Auction (June 16)

• Total sale: $43.4 million.
• Sell-through rate: 98% by lot.
• Top lots: 10.02-carat, rectangular, fancy intense blue, VS2-clarity diamond sold for $8.7 million.

“Demand was particularly strong for timeless designs, as well as for jewels and gemstones that speak to the evolving direction of the market.”

Quig Bruning, Sotheby's Global Head of Jewellery

Key Takeaways

• Auction activity during the first half of the year suggests liquidity remains strongest for exceptional diamonds, with well-priced, high-quality stones continuing to attract competitive bidding. 
• Larger and investment-grade diamonds have outperformed commercial goods, mirroring broader trends in the luxury market. 
• Although sentiment across the wider diamond industry remains cautious, the resilience of the top end indicates that rarity, provenance, and exceptional quality continue to underpin value retention over the long term.

Vintage Gains Momentum

The market for vintage and estate jewellery remains a bright spot in an otherwise uneven jewellery market.

Collectors continue to seek pieces defined by rarity, craftsmanship and lasting value, while younger consumers are drawn to the authenticity and individuality of antique jewellery.

Taylor Swift's engagement to Travis Kelce brought global attention to the category when she debuted a vintage-inspired ring featuring an antique cushion (old mine) cut diamond. The moment reflected a broader shift toward jewellery with history, character, and personal meaning among younger consumers.

Here are some factors driving renewed interest in vintage and estate jewellery:

• Buyers are seeking distinctive pieces that stand apart from mass-produced designs.
• Provenance, history, and craftsmanship add meaning beyond the intrinsic value of the jewellery.
• Nostalgia continues to fuel demand for designs that evoke earlier eras.
• Heirloom diamonds are being restored, reset, and passed on to a new generation.
• Estate jewellery appeals to buyers seeking more sustainable, circular luxury purchases.
• Jewelry purchases are driven by personal meaning rather than status alone.
• Vintage jewellery aligns with the broader shift toward slow fashion and timeless design.
• Antique cuts and period craftsmanship offer a character that cannot be replicated in modern production.

Changing Consumer Attitudes: Jewellery as an Investment and Collectable

Consumer attitudes toward fine jewellery continue to evolve beyond simple adornment. While jewellery has always carried emotional significance, it is increasingly viewed through the lens of long-term value, driven by a combination of economic uncertainty, rising precious metal prices, and growing appreciation for tangible assets.

Recent commentary from investors, luxury analysts and auction specialists suggest wealthy consumers are turning to fine jewellery, particularly signed pieces, and exceptional-colour gemstones, as stores of value. 

Unlike many other luxury goods, jewellery combines intrinsic material worth with craftsmanship, rarity, and brand equity, contributing to stronger value retention in the secondary market. This has reinforced the resilience of hard luxury relative to softer categories such as handbags and accessories.

At the same time, value is defined by more than just financial considerations. Consumers are placing greater emphasis on authenticity, provenance, and individuality. 

De Beers' latest consumer research found that natural diamonds remain the most desired jewellery item in the US, while younger consumers are drawn to one-of-a-kind pieces, antique diamonds, and jewellery with distinctive stories. The company argues that, in a world shaped by artificial intelligence and synthetic products, authenticity itself is becoming a premium characteristic.

This evolution is also reshaping what consumers choose to buy. Gifting and self-purchase now account for the majority of natural diamond jewellery acquisitions, reflecting demand driven by personal milestones, self-expression and collecting rather than bridal alone. De Beers also found that consumers who receive natural diamonds at a younger age are significantly more likely to become lifelong owners, highlighting the lasting emotional connection that often accompanies these purchases.

Together, these trends suggest that consumers increasingly view fine jewellery as more than a luxury accessory. 

Whether motivated by investment potential, collectability or emotional significance, buyers emphasize rarity, craftsmanship, provenance, and authenticity in their purchasing decisions. These qualities are difficult to replicate and are becoming progressively more important as the luxury market evolves.

Executive Summary

The diamond, jewellery and luxury watch markets continue to navigate a period of structural change. Economic uncertainty, inflation, elevated gold prices, and the continued growth of lab-grown diamonds are reshaping consumer purchasing behaviour and contributing to an increasingly polarized market. While lower-value commercial categories remain under pressure, demand for premium jewellery, exceptional diamonds, signed pieces and investment-grade gemstones has proven far more resilient, supported by affluent buyers who continue to prioritize quality, craftsmanship and rarity.

At the same time, consumer attitudes toward luxury are evolving. Vintage and estate jewellery are benefiting from growing appreciation for authenticity, provenance, and sustainability, while fine jewellery is viewed as a tangible asset that combines emotional significance with long-term value retention. Together, these trends point to a market in which scarcity, storytelling and exceptional quality are becoming important drivers of demand, reinforcing the enduring appeal of the world's finest diamonds, jewellery, and watches.

Methodology and Sources

This report is based on analysis by Auctentic's executives and industry analyst Avi Krawitz, founder and director of The Diamond Press. The analysis draws on reporting, research, and market commentary from a variety of industry organizations, companies, and analysts, including the Natural Diamond Council, Rapaport, Tenoris, and The Edge Retail Academy.