Diamond Prices Continue Downward Trend Amid Shifting Commodity Markets
Diamond prices extended their decline in July 2025, building on June's 2% slump as the precious gem loses ground to gold. The DMD/USD index reveals a 0.3% monthly drop for 1-carat diamonds, compounding a staggering 14% annual decline—the steepest in ten years. Smaller carat weights fared worse, with 0.3-carat pieces plunging 1.7% monthly and nearly 3% year-over-year.
The sector faces dual pressures: escalating trade tariffs disrupting global distribution channels and the rising popularity of lab-grown alternatives. Market anxiety grows as all diamond categories post year-to-date losses, with 0.5-carat stones down 2.3% in June and 3-carat varieties shedding 1.2% since January.