Production Rises, Prices Fall, and Technology Redefines Trust in Diamonds

 

De Beers Production Up, But the Market Signal Is Misleading

De Beers reported a 17% year-on-year increase in rough diamond production for Q1 2026, reaching 7.1 million carats. At face value, the figure suggests strengthening momentum. However, a deeper analysis reveals a far more measured reality.

The increase is primarily operational, not demand-driven. Output surged 88% quarter-on-quarter, largely due to a rebound from a deliberately reduced Q4 2025 production base. Key contributors included planned ore releases from the Gahcho Kué mine in Canada and higher underground volumes at Venetia in South Africa both outcomes of long-established mine plans rather than responses to improving market conditions.

This distinction is critical. Production growth tied to mine development cycles does not reflect rising consumer demand. Instead, it highlights the timing of extraction phases within capital-intensive, long-term mining programmes.

More telling is the divergence between volume and value. While production rose 17%, De Beers’ average realised prices declined by 19% over the same period. This inverse relationship underscores ongoing softness in the natural diamond market, where increased supply is not being met with corresponding demand.

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Angola Expands Ambitions with Rio Tinto Joint Venture

In a strategic move to expand its diamond sector, Rio Tinto has entered into a joint venture with Angola’s state-owned Endiama to develop the Chiri project.

The new entity, Sociedade Mineira do Chiri, will be majority owned by Rio Tinto (75%), with the remaining stake held by Endiama. Located in Angola’s resource-rich eastern region, the project has already shown promising kimberlite indications following early-stage exploration.

While capital expenditure has yet to be allocated, the initiative reflects Angola’s broader strategy to increase diamond output and attract foreign investment. This comes at a time when global diamond prices remain under pressure, reinforcing the long-term nature of such investments rather than any short-term pricing optimism.

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DiaDNA: A Technological Leap in Diamond Traceability

KP Sanghvi & Sons has introduced DiaDNA, a next-generation traceability platform that represents a significant advancement in diamond authentication.

Unlike traditional methods that rely on inscriptions, documentation, or external markers, DiaDNA analyses the diamond at an atomic level using advanced scanning and artificial intelligence. This process generates a unique structural “fingerprint” inherent to the stone itself immutable and impossible to replicate.

Each fingerprint is securely stored in a cloud-based system, allowing verification at any stage of the supply chain, from manufacturing through to retail. The technology enables:

• Independent, real-time authentication
• Enhanced provenance tracking
• Reduced reliance on fragmented paperwork
• Greater transparency for consumers and compliance teams

Fully integrated into KP Sanghvi’s Surat operations since 2024, DiaDNA signals a broader industry shift toward verifiable, data-driven provenance. As expectations around ethical sourcing and transparency continue to rise, such innovations are likely to become central to maintaining trust in natural diamonds.

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Market Perspective

The Q1 2026 landscape presents a clear narrative: increased production does not equate to increased demand. While miners continue to execute long-term operational strategies, pricing pressures persist across the market.

At the same time, structural shifts are underway. Nations like Angola are positioning for future supply growth, while technological innovation exemplified by DiaDNA is redefining how diamonds are tracked, authenticated, and ultimately trusted.

For the trade, the message is precise: understanding the difference between operational supply growth and genuine market demand has never been more important.

Source: DCLA

Geneva Set to Dazzle as Rare Blue Diamonds Headline May Auctions

 

The global diamond market will turn its attention to Sotheby’s and Christie’s this May, as two exceptional blue diamonds each representing the pinnacle of rarity and natural beauty prepare to go under the hammer in Geneva.

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Sotheby’s to Offer 6.03-Carat Fancy Vivid Blue Diamond

A 6.03-carat cushion-shaped fancy vivid blue diamond is expected to achieve up to CHF 9.5 million (approximately USD $12.2 million) at Sotheby’s High Jewellery auction on May 12 in Geneva.

The diamond is graded internally flawless and classified as a Type IIb stone a category that includes some of the rarest and most chemically pure diamonds in the world. Type IIb diamonds are distinguished by the presence of boron, which imparts their highly sought-after blue colour and exceptional optical properties.

This important piece will headline a broader offering of high jewellery from renowned maisons including Van Cleef & Arpels, Bucherer, and Cartier, alongside a curated selection of coloured diamonds and rare gemstones.

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“The Ocean Dream” Returns to Christie’s

Also commanding global attention is the reappearance of the legendary “Ocean Dream,” a 5.50-carat fancy vivid blue-green diamond, set to headline Christie’s Magnificent Jewels auction on May 13 at the Four Seasons Hotel des Bergues in Geneva.

Certified by the Gemological Institute of America, the Ocean Dream holds the distinction of being the largest known fancy vivid blue-green diamond in the world. Its unique hue reminiscent of tropical seawater places it among the rarest colour expressions ever documented in natural diamonds.

Unlike the Type IIb blue offered at Sotheby’s, the Ocean Dream is classified as a Type Ia diamond. While Type Ia stones account for approximately 95% of all natural diamonds, they are rarely associated with such intense and unusual colour saturation, making this specimen an extraordinary anomaly.

The diamond, cut into a distinctive triangular shape, originated from an 11.70-carat rough discovered in Central Africa during the 1990s. It is expected to achieve between CHF 7 million and CHF 10 million (USD $8.9 million to $12.7 million).

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A Stone of Museum-Level Importance

The Ocean Dream first gained international recognition during the 2003 “Splendor of Diamonds” exhibition at the Smithsonian National Museum of Natural History, where it was showcased among eight of the rarest diamonds ever discovered.

Max Fawcett, Global Head of Jewellery at Christie’s, has described the stone as “an exceptional jewel of profound rarity and allure,” underscoring its importance not only within the auction market but also in the broader gemological landscape.

This upcoming sale marks the diamond’s second appearance at auction. It was previously sold by Christie’s in 2014 for CHF 7.7 million, achieving approximately $1.4 million per carat at the lower end of its estimate at the time.

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Market Significance

The simultaneous offering of two world-class blue diamonds each representing different diamond types and colour origins highlights continued strength at the top end of the coloured diamond market. For collectors and investors alike, these stones underscore the enduring appeal of rarity, provenance, and gemological significance.

As Geneva once again becomes the focal point of the high jewellery world, the results of these sales will provide further insight into pricing dynamics for the rarest natural diamonds, particularly as supply remains constrained and global demand for exceptional stones continues to grow.

Source: DCLA

The Argyle Phoenix Sets Historic Benchmark as Antwerp Trade Rebounds

 

The Argyle Phoenix Redefines Rarity at Auction

At the 2024 Phillips Geneva Auction, the extraordinary Argyle Phoenix Diamond achieved a landmark result, selling to renowned diamantaire Laurence Graff for CHF 3.8 million (approximately USD 4.2 million). This equates to an exceptional USD 2.7 million per carat more than double its pre-sale estimate.

The result established two significant auction records simultaneously: the highest price ever achieved for a fancy red diamond and the highest price per carat for any diamond of its kind at auction.

For Graff, whose career has been defined by acquiring the world’s most exceptional gemstones, the purchase is emblematic. Stones of this calibre particularly natural reds are not simply rare; they are effectively non-recurring assets in the global market.

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The Rarest of the Rare: Natural Red Diamonds

To understand the significance of the Argyle Phoenix, one must place red diamonds within the broader hierarchy of gemstone rarity.

According to the Gemological Institute of America, fewer than 0.4% of all diamonds graded over the past two decades qualify as “fancy colour.” Within this already rare category, red diamonds stand alone at the pinnacle. Fewer than thirty true natural red diamonds are believed to exist worldwide not annually, but in total known supply.

Unlike other fancy colour diamonds, which derive their hues from trace elements, red diamonds owe their colour to a phenomenon known as crystal lattice distortion. Under extreme geological conditions, the atomic structure of the diamond is altered, affecting how light is absorbed and reflected. While similar processes produce pink diamonds, red diamonds represent the most intense and rare expression of this structural transformation.

The rarity is so profound that scientific study remains limited; nature produces these stones too infrequently for comprehensive analysis. As such, natural red diamonds remain among the least understood and most coveted gemological phenomena.

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Antwerp Diamond Trade Shows Signs of Recovery

Meanwhile, the global diamond trade is demonstrating early signs of stabilisation, particularly in Antwerp, historically one of the world’s most important diamond centres.

Figures released by the Antwerp World Diamond Centre indicate that total diamond trading volume rose by nearly 20% in the first quarter of 2026 compared with the same period in 2025. This marks a continuation of the recovery that began cautiously in late 2025.

CEO Karen Rentmeesters attributes the improvement to a combination of structural reforms and shifting geopolitical dynamics. Measures such as streamlined visa processes for international traders and the formal recognition of diamond cutters and sorters as critical occupations have enhanced Antwerp’s competitiveness.

Additionally, increased cooperation between Belgian and broader European institutions has reinforced the trading hub’s stability and appeal.

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Geopolitical Shifts Reshape Trade Flows

Global geopolitical tensions are also influencing the movement of diamond trade activity. Ongoing instability in the Middle East has made alternative centres, such as Antwerp, more attractive to international diamantaires seeking operational certainty.

This shift is further supported by notable supply-side developments, including large-scale auctions such as those conducted by Congolese producer SACIM, which recently sold over 288,000 carats of rough diamonds in Antwerp.

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Market Pressures Persist

Despite improving trade volumes, pricing remains under significant pressure. Rough diamond prices declined by approximately 27% in the first quarter of 2026 compared with the previous year.

This downturn is primarily driven by subdued demand for polished diamonds, compounded by the growing market share of synthetic alternatives and residual inventory build-up following the 2022 market peak.

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DCLA Perspective

From a DCLA standpoint, the divergence within the diamond market is becoming increasingly clear. At the very top end, ultra-rare natural diamonds such as the Argyle Phoenix continue to command record-breaking prices, driven by extreme scarcity and collector demand.

Conversely, the broader commercial market faces structural challenges, including shifting consumer preferences and increased competition from lab-grown diamonds.

This bifurcation underscores a critical trend: rarity, provenance, and natural origin are becoming more important than ever in defining long-term value within the global diamond industry.

Source: DCLA

Mother’s Day Jewellery Demand Drives Record Consumer Spending

 

Jewellery is set to play a leading role in what is to be a record-breaking Mother’s Day for consumer spending in the United States, according to the latest survey released by the National Retail Federation (NRF).

Despite ongoing economic uncertainty, sentiment remains resilient. Consumers continue to prioritise meaningful gifting, with jewellery emerging as a key category driven by emotional value and lasting significance.

“Mother’s Day remains a priority for many Americans,” noted Mark Mathews, Chief Economist at the NRF. “Consumers are increasingly seeking unique, sentimental gifts that create enduring memories.”

Total spending for the holiday is projected to reach a record US$38 billion, surpassing last year’s US$34.1 billion and exceeding the previous high of US$35.7 billion set in 2023. Within this, jewellery alone is expected to account for US$7.5 billion, representing a 10% increase year-on-year and reinforcing its position as one of the most significant gifting categories.

On an individual level, consumers are forecast to spend an average of US$284, marking a continued upward trend in per-person expenditure.

Beyond jewellery, experiential gifting continues to gain traction, with special outings projected to generate US$6.4 billion in spending. Electronics are expected to reach US$4.4 billion, followed by flowers at US$3.2 billion and greeting cards at US$1.3 billion.

According to Phil Rist of Prosper Insights & Analytics, consumers are not only budgeting more but also diversifying their spending across multiple gift categories.

The survey further highlights that:

• 54% of consumers plan to purchase gifts for their mother or stepmother
• 22% will buy for a spouse
• 13% intend to purchase gifts for daughters

Retail channels remain mixed, with 33% of shoppers favouring online and department stores, while 29% opt for specialty retailers a segment particularly relevant to the jewellery trade and 26% turning to discount outlets.

For the jewellery industry, the data underscores continued strength in consumer demand for pieces that combine emotional resonance with intrinsic value, reinforcing jewellery’s role as both a luxury purchase and a meaningful store of sentiment.

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Swiss Watch Exports Ease as Key Markets Show Weakness

Swiss watch exports recorded a modest decline in March, reflecting softer demand across several key international markets, according to figures released by the Federation of the Swiss Watch Industry.

Total shipments fell 1% year-on-year to CHF 2.11 billion (US$2.71 billion), following a period of strong growth in February across major markets.

The United States, the largest export destination for Swiss watches, led the downturn with a 1.6% decline to CHF 398.9 million. More pronounced weakness was observed in Asia and Europe, with exports to Japan falling 13% and Germany declining 9%.

While some markets showed resilience exports to the United Kingdom rose 3.2%, and China posted a 4.2% increase these gains were insufficient to offset broader softness. France recorded a sharp 72% increase, although this was largely attributed to re-exports rather than underlying consumer demand.

The Middle East presented a mixed picture. Exports to the United Arab Emirates edged up 0.7%, indicating continued stability, while Saudi Arabia experienced a notable 17% contraction.

From a pricing perspective, the only segment to record growth was watches priced between CHF 200 and CHF 500, which rose 15%. All other categories declined:

• Entry-level watches (below CHF 200): down 0.3%
• Mid-range (CHF 500–CHF 3,000): down 3.7%
• High-end (above CHF 3,000): down 0.5%

Despite the March slowdown, the first quarter as a whole remained positive, with exports increasing 1.4% to CHF 6.2 billion (US$7.95 billion).

The data suggests a market entering a phase of consolidation following periods of strong post-pandemic growth, with demand becoming increasingly uneven across regions and price segments.

Source: IDEX

Chanel’s $4 Million Diamond Chessboard: A Masterpiece of Haute Horlogerie and High Jewellery

 

In a breathtaking fusion of artistry, craftsmanship, and innovation, Chanel has redefined the traditional game of chess with a spectacular high jewellery creation valued at approximately $4 million.

Unveiled at Watches and Wonders Geneva, the extraordinary chess set forms the centrepiece of Chanel’s Coco Game collection a suite of 14 limited-edition timepieces conceived by Arnaud Chastaingt. Drawing inspiration from the codes and symbolism of games, the collection elevates horology into a realm of playful sophistication and technical brilliance.

The 32-piece chess set is meticulously crafted from ceramic, gold, and an astonishing 9,000 diamonds. Each chess piece is a miniature work of art, representing iconic Chanel motifs such as the Vendôme Column, a mannequin bust, and the lion a symbol closely associated with Gabrielle Chanel. In a deeply personal touch, Coco Chanel herself is portrayed as both Queens, elegantly dressed in her signature tweed suit.

Each figure is fashioned from 18-carat white gold and set with 193 brilliant-cut diamonds. Beyond their sculptural beauty, these pieces conceal a hidden complication a secret watch embedded within the base. Ingeniously designed, the timepiece can be removed and worn as a necklace, suspended from a white gold chain adorned with diamonds and onyx.

The chessboard itself is equally striking. Carved from black obsidian, it is framed by a scintillating border of 516 brilliant-cut diamonds, reinforcing the piece’s status as both a functional object and a collector’s masterpiece.

Elsewhere in the Coco Game collection, Chanel continues to explore the interplay between time and design. The Gabrielle Watch features a diamond-set depiction of Coco Chanel in her iconic white tweed suit, achieved through an intricate “tweed setting” technique. The Gabrielle Long Necklace transforms her silhouette into a refined pendant concealing yet another secret watch.

Additional highlights include the Première Coco Game cocktail ring, where a hidden dial is revealed by rotating a diamond, and the Première watch, whose bracelet is adorned with tiles spelling out the Chanel name a subtle nod to the maison’s enduring identity.

This remarkable collection is not merely about timekeeping; it is a celebration of heritage, creativity, and the enduring allure of diamonds where each piece tells a story as timeless as the brand itself.

Source: DCLA

ALROSA Shifts Strategy as Investment Diamond Sales Surge 40%

 

Russia’s state-backed diamond giant, ALROSA, has reported a sharp rise in demand for investment-grade diamonds, with sales increasing by 40% over the past year highlighting a growing shift toward diamonds as a tangible store of wealth.
The surge has been driven by ALROSA’s strategic focus on polishing and distributing high-quality stones directly to private investors. These include colourless diamonds above 2 carats, ranging from D to F colour and IF to VS2 clarity, as well as rare fancy-coloured diamonds. Entry prices for these investment stones typically begin at around $20,000, placing them firmly in the high-net-worth category.
Rather than relying on traditional open tenders, ALROSA is increasingly channelling its premium stones through its Diamond Exclusive programme an initiative launched in 2019 to connect rare diamonds directly with wealthy clients via Russian banking partners. This approach provides the company with greater control over pricing and distribution, while offering investors a more streamlined acquisition process.
A key incentive behind this rising demand is the exemption from Russia’s 20% VAT on investment-grade diamond purchases. This tax advantage, combined with ongoing volatility in global financial markets, has positioned diamonds as an appealing alternative asset alongside gold and other physical stores of value.
The programme has gained significant traction since 2022, when G7 sanctions disrupted Russia’s access to traditional diamond trading channels. What began as a niche offering has since evolved into a meaningful revenue stream for the miner.
Speaking in Moscow on 16 April, Sergey Takhiev, ALROSA’s Head of Corporate Finance, confirmed the increase in investment diamond sales, although specific volumes were not disclosed.
Takhiev also pointed to tightening supply dynamics supporting long-term price growth. “Diamonds over 3 carats those most suitable for investment represent just 1–2% of global production,” he noted. “A shortage in this category is already becoming evident.”
With global diamond output declining and high-quality stones becoming increasingly scarce, ALROSA is positioning investment diamonds as a rare and finite asset class one that may see continued upward price pressure in the years ahead.

Souce: DCLA

Angola’s Rough Diamond Production Climbs in 2025 as Market Pressures Persist

 

Angola’s diamond sector delivered a stronger-than-expected performance in 2025, with rough-diamond production rising by 8% year-on-year despite mounting pressures across the global market.

Total output reached 15.2 million carats, exceeding both the initial forecast of 15.1 million carats and the revised estimate of 14.8 million carats. The figures were confirmed by Jânio Víctor, Secretary of State for Mineral Resources, following the official release by the Ministry of Mineral Resources, Petroleum and Gas.

Export performance was equally robust. Angola shipped more than 17 million carats of rough diamonds during the year, generating approximately $1.6 billion in revenue. This represents a significant 70% increase in volume, although value rose by a more modest 7%, highlighting the ongoing pressure on global diamond prices. The majority of exports were directed to the United Arab Emirates, which accounted for 79% of shipments, while Belgium received a further 20%.

While these results underscore Angola’s growing importance as a key supplier of natural diamonds, they come at a time when the broader diamond market is facing considerable headwinds. Prices remain under pressure due to a combination of factors, including subdued consumer demand in key markets such as the United States and China, elevated inventory levels across the midstream, and the continued rise of lab grown diamonds, which are reshaping pricing dynamics and consumer perception.

In addition, cautious buying patterns, tighter liquidity within the cutting and polishing sector, and ongoing macroeconomic uncertainty have all contributed to a more challenging trading environment for natural diamonds.

Despite these conditions, Angolan officials remain optimistic about the sector’s resilience. The government expects gradual stabilisation in 2026, supported by improved supply discipline and a shift towards more selective, demand-driven purchasing. However, external factors, including global economic conditions and the evolving competitive landscape between natural and synthetic diamonds, are expected to continue influencing market performance.

From a DCLA perspective, the divergence between rising production and softening prices reinforces the importance of quality, rarity, and precise grading standards. As supply expands in a subdued market, the premium attached to well-certified, high-quality natural diamonds is likely to become even more pronounced.

Source: DCLA