Price Increases are Happening with Natural Diamonds

[Texas Leaguer]

All,
We have been talking about the prospect of higher prices for natural diamonds as shortages start being felt in the market due largley to the added cost of tarrifs, as well as the extreme uncertainty they have introduced into the supply chain. Now it is starting to come home to roost.
These are earlier threads predicting these impacts:

Thread 'Diamond Price increase on the near horizon'

Jul 30, 2025

Due to the latest tariff threat diamond prices appear on the verge of a significant increase. As of this moment the US is set to impose on India an increase from 10-25% on Aug 1. Since the majority of the world's diamonds are cut in India this could mean a 15% increase to take effect as early as this weekend. We have been advised by multiple trading partners that Indian manufacturers are poised to implement the increases, both on new orders and on diamonds that are in the US but have not been invoiced.

We could see an accross the board price increase reflected in virtual inventory...

• Texas Leaguer
• Replies: 31
• Forum: RockyTalky (Diamond Discussion)

• 
• 

Thread '50% Tarriff now in effect for diamonds from India'

Aug 28, 2025

As of yesterday the tariff on diamonds from India doubled to 50%. The Indian diamond sector is paralyzed.

We have heard from suppliers of both natural and lab grown that the business in India is now at a standstill. India cuts some 80% of the world's diamonds and there are millions of workers dependent on the industry.

It is true that there were significant quantities of diamonds proactively sent from India to the US prior to the first tariff going into effect. As it stands now, when those inventories begin to be depleted, we will see shortages and price increases.

Sourcing...

• Texas Leaguer
• Replies: 42
• Forum: RockyTalky (Diamond Discussion)

• 
• 

We are starting to feel it now. It is not yet an across the board effect, but rather is starting first to impact diamond sizes and qualities in short supply, such as high quality large stones. Sizes above 1.40ct have started rising, at least in our niche of precision cut diamonds. While prices are still far lower than they were a few years ago, they have definitely started now to increase. In large stones the total dollar increase can be significant, so it is definitely something to be aware of.

With the current tariff situation, particularly the insane 50% on India, it is hard to see how this trend reverses itself.

 

[MissGotRocks]

All,
We have been talking about the prospect of higher prices for natural diamonds as shortages start being felt in the market due largley to the added cost of tarrifs, as well as the extreme uncertainty they have introduced into the supply chain. Now it is starting to come home to roost.
These are earlier threads predicting these impacts:

Thread 'Diamond Price increase on the near horizon'

Jul 30, 2025

Due to the latest tariff threat diamond prices appear on the verge of a significant increase. As of this moment the US is set to impose on India an increase from 10-25% on Aug 1. Since the majority of the world's diamonds are cut in India this could mean a 15% increase to take effect as early as this weekend. We have been advised by multiple trading partners that Indian manufacturers are poised to implement the increases, both on new orders and on diamonds that are in the US but have not been invoiced.

We could see an accross the board price increase reflected in virtual inventory...

• Texas Leaguer
• Replies: 31
• Forum: RockyTalky (Diamond Discussion)

• 
• 

Thread '50% Tarriff now in effect for diamonds from India'

Aug 28, 2025

As of yesterday the tariff on diamonds from India doubled to 50%. The Indian diamond sector is paralyzed.

We have heard from suppliers of both natural and lab grown that the business in India is now at a standstill. India cuts some 80% of the world's diamonds and there are millions of workers dependent on the industry.

It is true that there were significant quantities of diamonds proactively sent from India to the US prior to the first tariff going into effect. As it stands now, when those inventories begin to be depleted, we will see shortages and price increases.

Sourcing...

• Texas Leaguer
• Replies: 42
• Forum: RockyTalky (Diamond Discussion)

• 
• 

We are starting to feel it now. It is not yet an across the board effect, but rather is starting first to impact diamond sizes and qualities in short supply, such as high quality large stones. Sizes above 1.40ct have started rising, at least in our niche of precision cut diamonds. While prices are still far lower than they were a few years ago, they have definitely started now to increase. In large stones the total dollar increase can be significant, so it is definitely something to be aware of.

With the current tariff situation, particularly the insane 50% on India, it is hard to see how this trend reverses itself.

It won’t unless the administration reverses itself on including diamonds in the tariffs. I am holding out hope that it does just that; however, when it might happen is anyone’s guess.

 

[freddyboston]

I suppose it's good for anyone selling their pre-loved high quality diamond.... be nice to see the paid/sell spread narrow a bit

 

[Mrsz1ppy]

After one nibble in 2 years, I just sold 4 pieces on JBG.

 

[Texas Leaguer]

It won’t unless the administration reverses itself on including diamonds in the tariffs. I am holding out hope that it does just that; however, when it might happen is anyone’s guess.

Indeed. Even the 10-15% tariffs are biz-kill. 50% is ludicrous.

There will be workarounds to mitigate the effects -survival will depend on it. Companies are even strategizing about moving operations to countries with lower tariffs. But that takes time, money and a serious loss of productivity in the process. With zero certainty where tariffs will actually be by the time a business could complete such transitions, due to the on again/ off again games that are being played with global trade. Such a monumental amount of damage and waste. All purposefully inflicted.

 

[Texas Leaguer]

I suppose it's good for anyone selling their pre-loved high quality diamond.... be nice to see the paid/sell spread narrow a bit

Yes, this is a bit of a silver lining for some. And I have long held that nurturing a healthy second hand diamond market would be in the interest of the diamond industry. I just wouldn't recommend we get there at such a tremendous cost to so many.

 

[empliau]

I suppose it's good for anyone selling their pre-loved high quality diamond.... be nice to see the paid/sell spread narrow a bit

Hah, I would like to sell a pre-loved low quality diamond, but the market isn't too good for that!

 

[MissGotRocks]

Indeed. Even the 10-15% tariffs are biz-kill. 50% is ludicrous.

There will be workarounds to mitigate the effects -survival will depend on it. Companies are even strategizing about moving operations to countries with lower tariffs. But that takes time, money and a serious loss of productivity in the process. With zero certainty where tariffs will actually be by the time a business could complete such transitions, due to the on again/ off again games that are being played with global trade. Such a monumental amount of damage and waste. All purposefully inflicted.

Yes, American ingenuity has always been rather incredible. If you could be planning for a long term move, that would be one thing. Being jerked around on seeming whims just can’t be a building block for large changes. I am just sorry for all of those affected - sellers and consumers as well. I hope that the reality of this foolishness, loss and loss of a trading partner is soon explained and rectified by the people making these decisions.

 

[ItsMainelyYou]

I'm sorry this is happening. Untenable situations everywhere.

 

[Tonks]

This is all so damn frustrating. Thank you for keeping us informed, @Texas Leaguer