Diamond prices rise for the first time in 15 months

Diamond prices showed signs of recovery in August, with 1-carat round diamonds recording their first monthly increase in 15 months. According to the Rapaport Trade Diamond Index, the 1-carat category rose by 0.5%, following a period of stagnation or decline that began in May 2025.

Smaller stones saw more significant gains, with 0.30-carat diamonds increasing by 2% and 0.50-carat diamonds rising by 2.5%. This recovery is attributed to a rebalancing of supply and demand as miners and manufacturers reduced production. While the 3-carat index declined by 0.4%, larger stones of 1.50 carats and above remained relatively firm, particularly commercial-quality stones popular in the United States.

The market context remains complex for major producers. Alrosa reported a 36% decline in first-half 2026 revenue, while De Beers saw a 19% decrease. Despite these declines, De Beers has worked to reduce losses through cost-cutting measures. Additionally, the industry is navigating trade dynamics, including US sector-specific tariffs on Indian gem and jewelry exports.