The diamond industry is navigating a drop in demand and a rise in supply that is weighing on polished prices at the start of the holiday season.

This comes despite earlier projections that limitations on Alrosa’s rough sales would result in polished shortages. Strong rough buying in 2021 and in the first quarter of this year has caused a spike in polished inventory, while economic uncertainty and the slowdown in China have resulted in buyer restraint.  

However, pockets of strength in the US jewelry sector are supporting the global market, noted Rapaport Senior Analyst Avi Krawitz in the latest installment of the Diamond Trends webinar series. That has brought a mixed outlook for the short term, he added.

Krawitz also outlined key trends that are shaping conversations about the industry, including the growth of the lab-grown diamond segment, sustainability, branding and marketing, and the pending agreement between De Beers and the Botswana government.

Image: Dealer inspects small rough diamonds. (De Beers)