Vipul Shah, Chairman-GJEPC and Anoop Mehta, President-Bharat Diamond Bourse in a letter to the diamond trade said “faced a challenging correction period with prices correcting at wholesale level over the last 18 months as the abnormal surge we witnessed subsided and we all shifted through our inventory kept in line with the unusual demand we experienced post covid. Now, the industry is at a turning point, driven by several positive dynamics. We urge everyone in the industry to recognize the clear signs of recovery and price stability moving forward.”

They said several key indicators suggest positive outlook and confidence in natural diamond pricing:

Reduced Polished Inventory: Significant reductions in polished diamond inventories across markets indicate supply is now more aligned with demand, providing a basis for price stabilization.

⁠Limited Rough Diamond Inflow: A decrease in rough diamond supply suggests that new polished diamond production will remain limited, reducing the risk of oversupply.

⁠Reduction in Manufacturing Capacities and Industry Debt: Industry players have responsibly managed slower demand and higher interest costs by optimizing manufacturing capacities and achieving the lowest bank debt levels in decades.

⁠Strong August Sales: August sales figures have been robust, reflecting increased consumer confidence and positive market momentum.

⁠Price Increases in Shortage Segments: Price rises in certain segments indicate a positive shift in market sentiment and a path toward stability.

They further stated “While India remains a growing market with increasing consumer spending, the U.S. market is showing consistent demand for natural diamonds despite recent challenges. Tenoris report is suggesting better July and some interest shifting to Natural Diamonds at retail in USA. The upcoming festive season is expected to have good sales.”

The letter also underscored the point that GJEPC is working towards enhancing the Indian diamond industry by promoting natural diamonds and diamond jewellery, and  seeks partnerships with miners and trade bodies to expand market reach and increase demand in key Asian markets.