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

Renowned analysts anticipate that as the market moves into a consolidation phase, rough diamond prices globally are likely to decline by 5% to 10% in the second half of the year. This prediction comes amid weak jewelry sales in key markets such as the U.S., Europe, and Japan, with additional concerns over slowing demand in China or potential price reductions in the rough diamond sector. Market observers note that while the supply of rough diamonds remains constrained, major producers are increasing inventory sales. Meanwhile, Russia’s state precious metals bank, Gokhran, has reportedly begun selling to speculative markets, adding further pressure on pricing. In addition, Zimbabwe's limited Kimberley Process certification has sparked uncertainty, raising fears that the lower-end diamond market could become oversaturated and face significant depreciation. On the other hand, rising gold prices are expected to continue encouraging gold consumption in mainland China, as consumers turn to gold as a safe-haven asset. These factors collectively suggest a complex and shifting landscape for the global diamond and precious metals markets in the coming months. The interplay between supply dynamics, regional demand trends, and macroeconomic conditions will likely shape the future trajectory of both diamond and gold prices.