Diamond rough prices are expected to stabilize in the second half of this year

Analysts are forecasting that as the market moves into a consolidation phase, rough diamond prices in the second half of the year could drop by 5% to 10%. This expectation is driven by weak demand in key markets such as the U.S., Europe, and Japan, where jewelry sales are expected to remain sluggish. Additionally, there are signs that Chinese demand may slow down or that rough diamond prices could decline further, adding pressure on the market. Despite tight supply conditions for rough diamonds, major producers are increasing their inventory sales, while Russia’s state precious metals bank, Gokhran, has also announced plans to sell to speculative markets. This move could add more liquidity and potentially increase price volatility. Meanwhile, Zimbabwe's limited Kimberley Process certification has raised concerns about the authenticity and availability of diamonds from the region, causing panic among traders. Some experts believe this will lead to an oversupply in the lower-end diamond market, which could further depress prices. In addition, rising gold prices are likely to continue encouraging gold consumption in mainland China, shifting some consumer interest away from diamonds. As a result, the overall diamond market is facing multiple pressures, with both supply and demand factors contributing to potential downward trends in the coming months. The situation remains closely watched by investors and industry players alike.