Diamond Shapes and the Impact of Rough Recovery on Pricing

 

Insights from the Diamond Certification Laboratory of Australia (DCLA)

In the diamond industry, shape is far more than an aesthetic choice. It plays a direct role in value, pricing structure, and how efficiently a rough diamond can be transformed into a polished stone. At the Diamond Certification Laboratory of Australia Diamond Certification Laboratory of Australia (DCLA), one of the key considerations in diamond assessment is how much of the original rough crystal is recovered during polishing.

This recovery rate, often referred to as yield, is one of the hidden drivers behind diamond pricing and helps explain why different shapes are priced differently in the wholesale and retail markets.

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Understanding Rough Diamond Recovery

When a rough diamond is cut and polished, a significant portion of the original crystal is lost. This loss is unavoidable due to the need to remove inclusions, shape the stone, and maximise brilliance.

Different shapes produce different recovery percentages:

• Higher yield shapes retain more of the original rough
• Lower yield shapes sacrifice more material to achieve optical performance and symmetry

This difference directly impacts cost efficiency for cutters and ultimately influences market pricing.

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Round Brilliant Cut: The Lowest Yield but Highest Demand

The round brilliant cut remains the most popular diamond shape globally due to its unmatched brilliance and light performance. However, it also has the lowest average recovery rate, typically ranging from 40 percent to 45 percent of the original rough diamond.

This means that more than half of the rough stone is lost during cutting. As a result, cutters must allocate more rough carat weight to produce a finished round brilliant diamond.

Because of this inefficiency, round diamonds carry a distinct pricing structure. They are often listed on a separate price sheet compared to fancy shapes, reflecting their lower yield and consistently strong market demand.

In practice, this means:

• Higher cost per polished carat
• Separate pricing benchmarks in global diamond trading
• Strong liquidity due to consumer preference

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Fancy Shapes and Higher Recovery Efficiency

Fancy shaped diamonds generally achieve higher recovery rates, often between 50 percent and 70 percent depending on the specific shape and quality of the rough stone.

Common fancy shapes include:

• Oval
• Cushion
• Princess
• Emerald
• Pear
• Marquise
• Radiant
• Asscher

These shapes allow cutters to follow the natural structure of the rough diamond more efficiently, reducing waste and improving yield.

Because more of the rough diamond is preserved, fancy shapes are generally more cost efficient to produce. This efficiency is reflected in their pricing, which is typically lower per carat compared to round brilliant diamonds of equivalent quality.

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Why Shape Drives Price Differences

The difference in pricing between round and fancy shapes is not simply a matter of popularity. It is fundamentally linked to manufacturing economics.

Key factors include:

1. Rough Utilisation

Round diamonds require significantly more rough material per finished carat, increasing production cost.

2. Cutting Strategy

Fancy shapes are often designed to maximise retention of weight from irregular rough crystals, improving overall yield.

3. Market Demand

Round brilliant diamonds remain the most in demand, which further strengthens their premium pricing structure.

4. Inventory and Supply Chain

Because fewer polished carats are produced from the same amount of rough, round diamonds are less efficient to supply, reinforcing their separate pricing benchmarks.

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Separate Pricing Structure for Round Brilliant Diamonds

Due to their unique combination of high demand and low recovery efficiency, round brilliant diamonds are typically priced using a dedicated pricing list in the wholesale market.

This separation reflects:

• Higher manufacturing loss during cutting
• Consistent global demand for round brilliance
• Different valuation dynamics compared to fancy shapes

Fancy shapes, by contrast, are generally grouped within broader pricing frameworks that account for their higher yield and more flexible cutting outcomes.

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Diamond shape is not only a design choice but a critical economic factor in the diamond industry. Recovery rates from rough stone directly influence pricing structures, with round brilliant diamonds standing apart due to their lower yield and strong consumer demand.

At DCLA, understanding these differences is essential for accurate valuation, certification, and market analysis. As the diamond trade continues to evolve, the relationship between rough recovery and polished pricing remains one of the most important principles shaping global diamond values.

Source: DCLA

30.20ct Fancy Intense Yellow Diamond to Headline Bonhams New York Auction

 

A remarkable 30.20 carat fancy intense yellow diamond is set to lead the upcoming June 8 Exceptional Jewels auction at Bonhams in New York, carrying an estimated value of up to US$550,000.

The centerpiece ring features a cushion cut fancy intense yellow diamond graded VS2 clarity, mounted within a surround of round brilliant cut diamonds. The impressive stone is expected to attract strong international attention as demand for rare coloured diamonds continues to remain firm among collectors and high net worth buyers.

The New York auction will present more than 150 exceptional jewellery lots, including important creations from renowned houses such as Harry Winston, Tiffany & Co. and Cartier.

Among the standout pieces featured in the sale are:

• An emerald cut 11.20 carat E colour VS1 clarity diamond ring with an estimate of US$250,000 to US$350,000.

• A Harry Winston ring showcasing a 7.08 carat cushion cut Colombian emerald flanked by tapered baguette cut diamonds, also estimated at US$250,000 to US$350,000.

• An 8.23 carat faint pink internally flawless diamond ring surrounded by round brilliant cut diamonds and accented with trapezoid side stones, carrying an estimate of US$180,000 to US$280,000.

• A pair of diamond earrings featuring matching 5.01 carat cushion cut E colour VS1 clarity diamonds, suspended beneath kite shaped diamonds, estimated at US$180,000 to US$280,000.

The sale highlights the continued strength of the high end coloured diamond and important gemstone market, particularly for rare natural fancy colour diamonds and exceptional signed jewellery pieces.

Source: DCLA

Two Exceptional Blue Diamonds Headline Christie’s New York Auction

 

Luxury auction house Christie’s will present two extraordinary blue diamonds at its Magnificent Jewels sale in New York on 9 June, each carrying an estimate of USD $6.5 million to $8.5 million.

Leading the sale is the 31.62 carat pear shaped “Azure Blue”, the largest fancy blue diamond ever offered at auction. The diamond has been graded by Gemological Institute of America as potentially Internally Flawless, placing it among the rarest blue diamonds to appear on the market in recent years.

Also featured is a 5.04 carat fancy vivid blue marquise modified brilliant cut diamond. The Type IIb stone carries a VVS2 clarity grade and is also considered potentially Internally Flawless. It is mounted in a platinum ring with tapered baguette diamonds.

Among the additional highlights is a 15.49 carat sapphire ring, expected to realise between USD $1.2 million and $1.8 million.

Signet Retains Top Position in North American Jewellery Sales

Signet Jewelers has once again been named the highest grossing jewellery retailer in North America in National Jeweler magazine’s annual State of the Majors report.

The company recorded jewellery and watch sales of approximately USD $6.36 billion across 2,329 locations during 2025, maintaining a substantial lead over competitors.

Swiss luxury group Richemont moved into second position, overtaking Walmart. Richemont generated approximately USD $3.62 billion in jewellery and watch sales from just 105 retail locations.

Other notable movements in the rankings included Costco rising to fifth place, Pandora advancing to seventh, and Watches of Switzerland entering the top ten.

The report noted a slight increase in the number of “superseller” jewellery and watch retailers generating more than USD $100 million annually, rising from 36 companies in 2024 to 37 in 2025.

Russia Plans Diamond Export Duties to Support Domestic Cutting Sector

Russia’s Finance Ministry has confirmed plans to introduce export duties on selected diamond exports later this year in an effort to support the country’s struggling domestic cutting and polishing industry.

Deputy Finance Minister Alexei Moiseev stated that the proposed tariff system is currently being discussed with Alrosa, the world’s largest diamond producer by volume.

According to Moiseev, the export duties would apply only to rough diamonds considered economically viable for local manufacturing, with the intention of preserving Russia’s remaining cutting expertise.

The Russian diamond sector continues to face significant pressure following US sanctions imposed on Alrosa in 2022 and the January 2024 G7 restrictions on Russian diamond imports.

Despite the ongoing challenges, Russian officials have indicated they are beginning to see signs of stabilisation within the global diamond market. Alrosa reduced production by 10 per cent in 2025 to 29.8 million carats and forecasts a further decline to between 25 and 26 million carats in 2026.

Source: DCLA

Gem Diamonds’ Large Stone Recoveries Lift Quarterly Revenue

 

reported quarterly revenue of US$32.1 million for the period ending 31 March 2026, supported by the continued recovery and sale of exceptional large diamonds from its Letšeng mine in Lesotho.

The company achieved an average price of US$1,501 per carat at its first export sale of the year, representing a 17% increase from the previous quarter. Although total carats sold declined 21% to 16,727 carats, Gem Diamonds deferred part of its production into the second quarter.

A key contributor to revenue was the sale of 10 diamonds larger than 10.8 carats, including a remarkable 191.82 carat Type IIa white diamond. These stones generated US$7 million during the quarter, with the balance of the parcel still to be sold.

Gem Diamonds highlighted that four exceptional stones sold for more than US$1 million each, contributing a combined US$9.9 million in revenue. The highest value achieved during the quarter was US$32,908 per carat for a 52.24 carat white diamond.

The company also recovered two additional stones exceeding 100 carats during the quarter, including another 191.82 carat diamond and a 100.71 carat faint yellow diamond scheduled for sale in the second quarter.

Production at the Letšeng mine remained weighted towards the lower grade Main Pipe in line with the mine plan, while contribution from the higher value Satellite Pipe was reduced. Ore treated declined 3% quarter on quarter to 1.33 million tonnes, while total carat recovery increased 3% to 21,605 carats.

The results continue to demonstrate the resilience of the high value large diamond market, even as broader polished diamond demand and consumer spending remain under pressure globally.

Gem Diamonds stated that all operational and financial metrics remain within its 2026 guidance.

Source: DCLA

Botswana and Angola Governments Join WFDB as Industry Seeks Closer Producer Links

 

The governments of Botswana and Angola have officially become affiliated members of the World Federation of Diamond Bourses in a significant move that strengthens ties between major diamond producing nations and the global trading sector.

The announcement was made on 18 May during the WFDB International Summit held in Gaborone.

Although neither country currently operates a fully established standalone diamond bourse, both nations have sought representation within the WFDB due to the critical role diamonds play in their economies. Botswana remains the world’s second largest producer of natural diamonds, while Angola continues to expand its position as a major African diamond producer and trading hub.

This marks the first time governments have been admitted into the WFDB, which represents the world’s leading diamond bourses and trading centres. Botswana and Angola have initially been granted affiliate membership status, with both countries expected to participate as full WFDB members at the World Diamond Congress 2026 in Singapore this July.

Bogolo Kenewendo, Botswana’s Minister of Minerals and Energy, said the membership demonstrates the country’s commitment to international co operation, responsible industry growth, and strengthening the position of natural diamonds in an increasingly competitive market shaped by synthetic stones.

For Botswana, direct engagement with the trading community is expected to enhance collaboration around transparency, traceability, and the differentiation of natural diamonds from lab grown products.

Diamantino Azevedo, Angola’s Minister of Mineral Resources, described the move as an important step in deepening Angola’s engagement with the international diamond trade while supporting broader industry collaboration. Angola has spent several years developing plans for its own diamond exchange as part of wider reforms aimed at modernising the country’s diamond sector.

Kimberley Process Faces Renewed Criticism Ahead of Mumbai Meeting

Meanwhile, the Kimberley Process has come under renewed pressure from civil society groups ahead of last week’s intersessional meeting in Mumbai.

The Kimberley Process Civil Society Coalition issued a strongly worded assessment criticising what it described as another failed reform cycle. The group argued that the KP continues to struggle with redefining conflict diamonds, addressing compliance concerns, and delivering meaningful transparency measures.

Farai Maguwu, vice coordinator of the KP Civil Society Coalition, said the natural diamond industry often focuses on competition from lab grown diamonds while failing to confront long standing structural issues within the sector itself.

He stated that the Kimberley Process must move beyond “superficial marketing adjustments” and instead become more transparent, accountable, and capable of responding to modern diamond related abuses.

However, World Diamond Council president Ronnie VanderLinden offered a far more optimistic assessment following the conclusion of the meeting.

VanderLinden praised the co operation shown by participants and said the KP demonstrated its ability to work through difficult issues under pressure. He also commended India’s leadership and its focus on the “3Cs” vision of Confidence, Credibility, and Compliance.

He added that the industry must now find the determination to modernise the definition of conflict diamonds so it better reflects current global realities and expectations surrounding responsible sourcing and ethical trade.

Source: DCLA

India Hikes Gold Tariff from 6% to 15%

 

India has more than doubled tariffs on gold and silver – up from 6% to 15% – in a move aimed at easing pressure on its foreign exchange reserves.

The increase took effect on 13 May, just three days after Prime Minister Narendra Modi called on people to stop buying gold for a year, as part of a broader austerity program.

The Gem & Jewellery Export Promotion Council (GJEPC) warned that increased tariffs would result in higher prices rather than lower imports.

Jewellery retailers believe limiting the volumes imported, rather than raising duties, would be more effective.

Stocks in Kalyan Jewellers and Thangamayil Jewellery fell by around 6% on the day in response to the news.

“As expected, the government has raised duties to curb the current account deficit. However, this could affect demand, as gold and silver prices were already elevated,” said Surendra Mehta, national secretary of the India Bullion and Jewellers Association.

India is the world’s second biggest gold buyer after China. The new 15% tariff on gold and silver imports comprises a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC).

Source: DCLA

Zimbabwe Pushes for Higher Diamond Output Despite Global Market Pressures

 

Zimbabwe is aiming to increase diamond production to 5 million carats in 2026 through its state owned miner, the Zimbabwe Consolidated Diamond Company, despite mounting challenges across the global diamond sector.

The ambitious production target comes at a time when the international diamond market continues to face severe pressure from geopolitical instability, weakening consumer demand, the rapid rise of synthetic diamonds, and declining rough diamond prices. While most producers have experienced price declines of between 26% and 35%, Zimbabwe’s lower quality rough production has been hit far harder, with prices collapsing from highs of US$79 per carat to as low as US$22 per carat.

According to ZCDC chief executive Douglas Zimbango, Zimbabwean goods have suffered disproportionately due to a combination of product profile limitations, geopolitical tensions, synthetic diamond competition, market collusion, and what he described as an unsatisfactory sales framework.

“The international diamond market remains in a downturn,” Zimbango told lawmakers in Mutare, adding that Zimbabwe’s rough production now typically trades within a price range of US$22 to US$34 per carat. This compares unfavourably with higher quality producers achieving average rough prices closer to US$100 per carat.

Official figures show Zimbabwe sold 784,764 carats during the first quarter of 2026, representing an 11% decline in volume compared with the same period last year. Revenue performance weakened even further, with total sales value falling approximately 29% to US$21.6 million.

Despite the deteriorating pricing environment, Zimbabwe continues to pursue higher production volumes as part of a broader national economic strategy. Since commencing operations in 2016, ZCDC has extracted more than 26.5 million carats.

The country’s sovereign wealth vehicle, Mutapa Investment Fund, which owns ZCDC, has recently undertaken a restructuring of its mining interests in an effort to improve operational efficiency. This includes the creation of five new entities and the reorganisation of Kuvimba Mining House.

The Diamond Price Paradox

Zimbabwe’s current position highlights a growing structural problem within the global natural diamond industry. Unlike previous downturns driven largely by cyclical demand weakness, the present market correction reflects a far deeper transformation in the sector.

The rapid expansion of laboratory grown diamonds, combined with shifting consumer attitudes and global economic uncertainty, is forcing the industry to reassess the long term value proposition of natural diamonds. Producers operating within lower quality rough categories are facing the greatest pressure, as increased production volumes no longer guarantee higher revenues.

Zimbabwe remains one of the world’s largest diamond producing nations, accounting for approximately 3% of global supply and ranking seventh globally by production capacity. However, the widening gap between output growth and declining per carat values exposes the increasingly difficult economics confronting many diamond producing regions.

While Zimbabwe’s operational capacity continues to expand, the industry now faces a critical challenge: producing more diamonds in a market where the value of rough supply continues to deteriorate.

Source: DCLA