Trade Deals

The United States and India have agreed to a trade deal that effectively removes import duties on India-sourced diamonds shipped to the US. Reciprocal tariffs were cut to 18% from 25%, the additional 25% penalty tariff was scrapped, and diamonds and gemstones were included on the list of exempt items.

The European Union has abolished import duties on Indian gem and jewelry products under a new trade agreement, removing tariffs of 2% to 4% on precious jewelry. India, in turn, lowered its import duty on natural polished diamonds from the EU to 2.5% from 5.5%.

Robust Retail

Independent jewelers reported stronger sales in January, with higher transaction values offsetting lower unit volumes. The Edge Retail Academy estimated jewelry sales across all product categories rose 16%, with diamond sales up 2%, while Tenoris reported a 9% increase in overall jewelry sales and a 1.2% rise in diamond sales.

Sales at Richemont’s jewelry maisons, including Buccellati, Cartier, Van Cleef & Arpels and Vhernier, rose 6% year on year to EUR 4.79 billion ($5.59 billion) in the quarter ending December 31.

Revenue at LVMH’s watch and jewelry unit rose 3% to EUR 10.58 billion ($12.63 billion) in 2025, while the division’s operating profit declined 2% to EUR 1.55 billion ($1.85 billion). Fourth-quarter sales increased 8%, reflecting a strong holiday season at Tiffany & Co. and Bulgari.

Harry Winston recorded its strongest month on record in December, parent company Swatch Group said. Birks Group reported a 12% year-on-year increase in sales over the November–December holiday period, while Watches of Switzerland said trading exceeded expectations in the quarter ending December 31, driven by sustained growth in the US, including strong performance at its Roberto Coin subsidiary.

Consolidation Watch

Watches of Switzerland acquired an 88% stake in Deutsch & Deutsch, a family-owned luxury watch and jewelry retailer in Texas, which operates four showrooms and generated about $67 million in revenue in 2024.

International Gemological Institute has purchased American Gemological Laboratories, strengthening its colored gemstone analysis and provenance reporting capabilities, while expanding AGL’s certification services beyond the US and diversifying IGI’s revenue base.

Richemont has agreed to sell specialist watchmaker Baume & Mercier to Italy’s Damiani Group, expanding Damiani’s hard luxury portfolio.

Amaar Jewels has acquired Australia-based Secrets International, which trades as Secrets Shhh, transferring most of the retailer’s store network to the Dubai-based group and preserving more than 100 jobs.

Enhanced Retail Funding, a unit of Gordon Brothers, has agreed to acquire Lugano Diamonds & Jewelry following the retailer’s Chapter 11 filing in November. The sale was approved on December 31, with financial terms undisclosed.

Rough Market Mechanics

Petra Diamonds recovered a 41.82-carat Type IIb blue diamond at its Cullinan mine in South Africa, with the company noting the stone has exceptional color and clarity.

De Beers cut prices for weaker categories of rough at its January sight, with sightholders reporting significant reductions for 4- to 8-grainer goods and some adjustments in the 2- to 4-carat range.

Trans Atlantic Gem Sales (TAGS) sold all 500,000 carats of Zimbabwean rough on offer at its January tender, with higher-quality goods meeting market expectations while lower-priced material continued to see limited demand.

Leadership Moves

Diamond Trading Company Botswana has appointed Serty Leburu as managing director, making her the first woman to hold the role. She joins from Standard Chartered Bank, where she was deputy CEO, and previously held senior roles at Debswana and Botswana Diamond Valuing Company.

Black in Jewelry Coalition has appointed five new members to its board: Thomas Davis, Monalisa DePina Ray, Jamie Batiste, Nicole Batumike, and Lavina Hunt-Lewis, spanning expertise in retail, advocacy, responsible sourcing, communications, and global operations.

Stuller has named Taylor Burgess chief merchandising, marketing and sales officer. Burgess joined the jewelry wholesaler in 2013 and has played a central role in shaping its merchandising strategy, the company said.

The Diamond Council of America has appointed a new board of directors, led by chair Jennifer Hamond of Signet Jewelers and vice chair David Bonaparte of Jewelers of America. New members include Bobbi L. Avery of Day’s Jewelers, Jeffery Bolling of Jeffery B. Jewelers, Britney Phillips of Fred Meyer Jewelers, and Lindsay Salvo of Signet Jewelers.

Market Oversight

India’s Bureau of Indian Standards introduced a new diamond disclosure standard tightening terminology and transparency across natural, laboratory-grown, treated and imitation diamonds. The rules restrict use of the term “diamond” to natural stones, require full disclosure for laboratory-grown products, and ban abbreviations such as “lab grown” and “LGD.”

Botswana’s diamond inventory stood at 12 million carats in December, almost double the government’s 6.5 million-carat target, according to a Finance Ministry budget strategy paper. The ministry said the pace of economic recovery depends on a rebound in diamond demand and the speed at which excess stock is reduced.

Anglo American is reviewing the carrying value of De Beers, citing ongoing weakness in the diamond market. The group said it is assessing whether an impairment is required, which would mark a third write-down in three years.

Rest of the World

Bain & Co said jewelry sales in China improved notably in 2025, led by fine jewelry, while higher rare-metal prices reinforced jewelry’s role as a store of value.

Chow Tai Fook reported an 18% year-on-year increase in retail sales in the quarter ending December 31, driven by higher transaction values. Luk Fook Holdings posted a 17% rise in retail revenue, supported by strong demand for fixed-price gold, with gem-set fixed-price gold sales jumping 66%.

Titan Company reported a 40% year-on-year increase in group sales in the fiscal quarter ending December 31, stimulated by higher average selling prices that offset largely flat buyer growth.

Michael Hill posted a 3% rise in group sales to AUD 370.3 million ($259 million) in the half year ending December 28, with same-store growth across Australia, Canada and New Zealand.

Pandora, by contrast, reported a 1% decline in fourth-quarter revenue to DKK 11.9 billion ($1.85 billion), citing weak consumer sentiment, particularly in the US, while operating profit fell 2.4% to DKK 4 billion ($623.7 million).

Rough Ties

A delegation from Angola, led by Minister of Mineral Resources Diamantino Azevedo, visited Antwerp in late January to discuss ways to expand the trade of Angolan rough diamonds through the city.

Botswana is exploring cooperation with Russia in the diamond sector, with Foreign Minister Phenyo Butale telling Russian state news agency TASS that discussions could include drawing on Russian expertise in large-scale mining and downstream processing to support value creation in Botswana’s diamond industry.

Producer Performance

De Beers reported rough sales rose 10% to $2.98 billion in 2025, supported by a 17% increase in volumes to 20.9 million carats, despite a 7% decline in average prices to $142 per carat. Production fell 12% to 21.7 million carats, and the company cut its 2026 output guidance to 21 to 26 million carats.

Gem Diamonds said rough sales from its Letšeng mine fell 36% to $97.7 million in 2025, as volumes declined 20% to 88,381 carats and average prices dropped 20% to $1,105 per carat.

Burgundy Diamond Mines reported diamond sales from its Ekati mine fell 16% year on year to 680,000 carats in the fourth quarter, while production declined 11% to 540,000 carats.

Angola’s rough diamond sales rose 21% to $1.8 billion in 2025, while volumes jumped 70% to about 17.7 million carats, according to state diamond marketer Sodiam.

Strategic Partnerships

The Natural Diamond Council has admitted Angola’s parastatals Endiama and Sodiam as members, following the country’s commitment to category marketing under the Luanda Accord.

De Beers London and GemFair have launched a 12-piece capsule jewelry collection, marking the first use of GemFair’s artisanal-mined diamonds in finished jewelry. The collection pairs rough and polished stones to reflect the journey from mine to market and positions GemFair as a registered supplier for future De Beers London collections.