Story Highlight
– Natural Diamond Index declined by 3.27% overall.
– Natural Round Index increased by 0.44%.
– Fancy Diamonds saw a significant decline of 7.2%.
– US-Israel-Iran conflict increased market uncertainty for buyers.
– Lab-Grown Diamond Index fell by 6.28%.
Full Story
The second quarter of 2026 witnessed a nuanced decline in the diamond market, characterised by increased selectivity among buyers.
According to UNI Market Insights, the Natural Diamond Index saw a decrease of 3.27%. However, this summary figure masks a more complex reality within the market dynamics.
The Natural Round Index experienced a slight increase of 0.44%, contrasting with the Natural Fancy Index, which fell by 7.2%. This decline in Fancy diamonds represents significant pressure within the overall diamond sector.
The quarter started with a cautious approach from buyers, who were already adapting to shifting trade conditions. Factors such as location, timing, and final costs became pivotal, particularly for diamonds being traded across borders.
The ongoing conflict involving the US, Israel, and Iran introduced further uncertainties, causing disruptions along crucial trade routes through Israel and Dubai. As a result, buyers adopted a more scrutinising stance on their purchases.
Data indicated this trend clearly; smaller Natural Round diamonds performed resiliently, with prices for 0.30ct I+ VS+ stones rising by 5.7%, while prices for 0.50ct I+ VS+ categories remained relatively stable, increasing by 0.94%. In contrast, prices for 1ct I+ VS+ diamonds decreased by 3.42%, even though the supply in this category dropped by a considerable 36%. This suggests that reduced availability alone could not restore price balance.
In terms of larger diamonds, those in the 2ct and 3ct I+ VS+ categories continued to show relative strength compared to their smaller and Fancy counterparts, with price drops of 1.61% and 1.28%, respectively.
Conversely, the Lab-Grown Diamond Index experienced a more pronounced decline of 6.28%, with Rounds decreasing by 7.68% and Fancies by 5.67%. Although prices continued to fall, the rate of decline was less severe than in the first quarter.
Overall, the second quarter reflected a market that, while still operational, was approaching transactions with heightened caution.
These findings are sourced from UNI Market Insights, a platform that provides market data for the diamond industry, enabling traders to make informed sourcing decisions based on real-time pricing and supply information.
