Core Insights - The diamond industry is experiencing a long-term price increase, with natural diamond rough prices rising by 37% since 2007 and an average annual growth rate of approximately 3% for finished diamonds over the past 35 years [1][2] Group 1: Market Trends - Global diamond prices and sales have declined in the past two years, following a significant price increase of 40% between 2021 and 2022 [2] - Factors contributing to the recent price decline include high inventory levels in the Indian cutting industry and increased financing costs [2] - Despite short-term fluctuations, industry experts believe that diamond prices will continue to grow steadily in the long run due to limited natural diamond reserves [2][3] Group 2: Investment Potential - Investment-grade diamonds, particularly those weighing over 5 carats, have been less affected by recent price declines and are considered attractive to potential investors [3] - The diamond price index is projected to grow by 3%-5% annually over the next decade, with stronger growth expected after 2027 [3] - China, as the largest jewelry market, has a relatively low share of diamond jewelry sales at 9%, compared to 60% in the United States, indicating potential for growth in the Chinese market [3] Group 3: Future Outlook - The diamond trading market is expected to recover gradually by 2025, with significant increases in both the volume and value of diamond imports [3] - Data shows that from January to July 2025, the total weight of finished diamond imports through customs is projected to reach 1.1788 million carats, a year-on-year increase of 93.8%, with a total import value of $379 million, up 43.5% [3]

Core Insights - The long-term outlook for diamond prices remains positive, with expectations of steady growth due to limited natural diamond reserves [2][3]. Industry Overview - Natural diamond rough prices have increased by 37% since 2007, with an average annual growth rate of approximately 3% for finished diamonds over the past 35 years [2]. - Despite a decline in global diamond prices and sales over the past two years, this is seen as a relative decrease following a significant price surge of 40% between 2021 and 2022 [3]. - The current high inventory levels in the Indian cutting industry and increased financing costs have contributed to the recent price corrections [3]. Market Dynamics - The annual production of diamonds has been declining, from 160-180 million carats in the early 21st century to an expected 110 million carats by 2024, due to depleting reserves and a lack of new large discoveries [3]. - Investment-grade diamonds, particularly those weighing over 5 carats, are less affected by price declines and are considered attractive to potential investors [5]. Future Projections - The diamond price index is projected to grow by 3%-5% annually over the next decade, with stronger growth anticipated after 2027 [5]. - China, as the largest jewelry market, currently has a low share of diamond jewelry sales at 9%, compared to 60% in the United States, indicating potential for growth [5]. - A significant increase in diamond imports is expected in 2025, with a projected 93.8% year-on-year increase in weight and a 43.5% increase in total import value [5].