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A Divided Diamond Market

The global diamond trade entered 2026 facing significant market volatility, characterized by a sharp decline in the value of smaller stones. While high-carat diamonds and unique fancy shapes maintained their appeal, smaller natural gems suffered due to shifting consumer preferences and the rising popularity of lab-grown alternatives. International trade was further complicated by US tariffs on India, weakened demand in China, and ongoing geopolitical sanctions. American retailers remained cautiously optimistic following the holiday season, yet they increasingly focused on inventory management and larger, high-quality stones. Overall, the industry is navigating a period of structural change as it awaits potential trade agreements and monitors the expanding influence of synthetic jewelry. These findings, supported by RapNet Diamond Index data, highlight a growing price gap between luxury investment pieces and mass-market goods.