Holiday Boost for Jewellery Spending
Jewellery spending in the U.S. rose by 4.0% from November 1 to December 24, according to Mastercard SpendingPulse, reflecting solid holiday-season demand. Round diamonds continued to outperform fancy cuts, with key price categories seeing moderate increases.
Despite these gains, the market remains uncertain for staple goods, with no definitive trends emerging. Industry insiders suggest recovery is underway but at a measured pace.
Challenges and Market Adjustments
The supply of rough diamonds remains tight, and manufacturing in India continues to operate below capacity, leading to incremental price increases. However, the anticipated rebound in demand from China has not materialized, and lab-grown diamonds are becoming a popular alternative for many consumers.
Even leading retailers face headwinds. Signet Jewelers, the world’s largest diamond jewelry retailer, reported a 3.1% drop in revenue for Q3 2025—a decline but an improvement compared to the 7.6% decrease in the previous quarter.
Key Price Movements (IDEX Highlights)
Round Diamonds:
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1.00-1.24 ct. D / IF-VVS2: +1-3%
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3.00-3.99 ct. G-K / VVS2-VS1: +1-2.5%, I-L / SI3: +1.5%
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4.00-4.99 ct. F-H / IF-VS1: +1-3.5%, J-M / IF-VVS2: +0.5-2%
Fancy Cuts:
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0.80-0.89 ct. E / VVS1-2: -2%, H-I / IF: +1.5-3%
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1.00-1.24 ct. D-E / IF-VS1: +1-4%
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4.00-4.99 ct. E-K / SI3: +1.5-3.5%
While the signs of stabilization are encouraging, experts caution that a full recovery for the diamond market remains gradual. The balance between constrained supply, shifting consumer preferences, and competition from lab-grown diamonds will continue to shape pricing trends in the coming months.
