Watch and jewelry sales in the US remained steady in March, with a slight overall increase of 0.4 per cent, according to the latest US Department of Commerce figures.
Jewelry sales rose slightly, while watch sales dipped, as consumers opted for higher-priced items, but bought fewer of them.
In February overall sales increased by just 0.2 per cent and in January they fell by 1.0 per cent
The US government’s BEA (Bureau of Economic Analysis) reported a 0.7 per cent increase in consumer spending in March, the biggest increase for two years, but said it was largely driven by a rush to buy cars before US reciprocal tariffs forced prices up.
Watch and jewelry sales have been characterized by very modest increases in recent months, following on from a year of sustained growth – 10 per cent or more in some months – as shown below.
Reciprocal US tariffs – announced in April, then paused until July – will almost certainly hit sales, as producers forced to either absorb the costs or pass them on to consumers.
The diamond world is facing fresh turbulence following the U.S. government’s decision to impose tariffs on imported diamonds — a move that De Beers CEO Al Cook says does nothing to support American jobs or the economy.
In an exclusive interview with the Financial Times, Cook made it clear: “There are no U.S. diamond mining jobs to protect.” He stressed that these tariffs don’t create employment or benefit the domestic industry — instead, they act as a consumption tax that ultimately punishes the American public.
A Tax on Love, Not a Boost to Industry The U.S. remains the largest market for diamond jewellery, accounting for about half of global demand, yet it has no significant commercial diamond mining of its own. Every diamond on American soil has been imported — meaning the 10% blanket tariff on all imports, introduced by President Donald Trump, hits the diamond trade especially hard.
Unlike many raw materials that were exempt from the tariffs, diamonds were left out, intensifying the impact on a sector already grappling with declining demand and competition from synthetic alternatives.
According to Cook, the result has been immediate: the trade in natural diamonds briefly ground to a halt. The World Diamond Council echoed his warning, stating that $117 billion in annual revenue and over 200,000 U.S. jewellery jobs could be at risk if diamonds aren’t removed from the tariff list.
“Tariffs on diamonds are not protecting American industry,” Cook emphasised. “They’re just increasing the cost of engagement rings, anniversary gifts, and other sentimental purchases.”
Global Trade Routes Disrupted What makes diamonds unique is their complex, high-value supply chain. They’re small, easy to transport, and often pass through multiple countries — from mines in Botswana and Angola, to polishing hubs in India, and finally into U.S. jewellery stores. Tariffs disrupt that finely tuned system.
This comes at a particularly sensitive moment for De Beers, as parent company Anglo American prepares for a sale or initial public offering (IPO) of the diamond giant. Despite industry challenges, De Beers is pushing ahead with IPO plans that could launch by early next year.
But the company is feeling the pain too: first-quarter revenue dropped 44% year-on-year to $520 million, reflecting both lower prices and reduced demand. Anglo American has also written down De Beers’ value by $4.5 billion over the past two years.
Hope on the Horizon? Still, Cook remains optimistic. He believes that over time, U.S. tariffs on diamonds will be lifted. The American government has already granted tariff exemptions for items like smartphones and car components, and Cook is confident natural resources like diamonds will follow suit.
Adding to that optimism are positive developments in U.S.–India trade talks. India polishes over 90% of the world’s diamonds, making it a key link in the supply chain. A favourable trade agreement between Washington and New Delhi could ease the pressure and offer the diamond sector a much-needed reprieve.
In the end, the message from De Beers is clear: Tariffs on diamonds don’t help American workers or industry — they just make life more expensive for consumers. As negotiations progress and the global market adjusts, the diamond world will be watching closely to see whether policymakers come to the same conclusion.
Botswana’s vice president says he’s confident that a new buyer will be found for De Beers by the end of the year – and he hinted that the government could substantially increase its own stake, currently 15 per cent.
Ndaba Gaolathe (pictured) said there were countries, funds and companies that all had a “deep interest” in acquiring the 85 per cent share being offered by Anglo American, and he said he was confident they were “on the right track”.
The UK-based miner is selling off De Beers, its diamond division, together with other assets, to focus on copper, its most profitable activity.
Anglo has written down the value of De Beers twice in just over a year, as sales slump and the company descends from profit to loss. It is now valued at $4.1bn, a fraction of the value when Anglo acquired overall control of the company in 2012.
Gaolathe, quoted by Bloomberg News yesterday (30 April) after an interview in Washington, USA, said the Botswana government could increase it take in De Beers (currently 15 per cent) to as much as 50 per cent.
Anglo is seeking to a sale or IPO of De Beers by the end of this year.
Yellow diamonds are making a stylish comeback. Whether offering a warm, earthy glow or a vibrant pop of colour, these fancy-coloured stones bring a fresh, contemporary edge to fine jewellery. They can be worn as neutrals, used as centrepieces, or layered for subtle impact—making them as versatile as they are striking.
The colour in yellow diamonds is the result of nitrogen atoms bonding with carbon within the diamond’s crystal lattice. This bond subtly alters the diamond’s atomic structure, changing the way it interacts with light. Specifically, it absorbs the blue part of the visible spectrum, allowing yellow tones to dominate. The Diamond Certification Laboratory of Australia (DCLA) grades yellow diamonds based on their colour intensity, classifying them as light, intense or vivid. The deeper and more saturated the yellow, the rarer and more valuable the diamond. Curiously, the lighter tones are often more affordable than white diamonds, making them an attractive alternative for those seeking something both elegant and unique.
Why Designers Are Embracing Yellow Diamonds
Jewellery designers are increasingly drawn to yellow diamonds for their warmth, individuality, and unexpected elegance. These stones challenge the norm, offering something joyful and radiant while still being refined. As the jewellery world moves beyond the conventional, yellow diamonds are gaining traction as centrepieces with personality.
How to Wear Yellow Diamonds
Once your collection includes the classics such as white diamond hoop earrings, tennis bracelets, stacking rings or a line necklace it’s easy to introduce a splash of colour. Yellow diamonds pair beautifully with white or rose gold and work well layered with other tones. Go bold with vibrant yellow bangles and cocktail rings, or opt for a more understated approach with a mix of pale-yellow and Champagne diamonds, as seen in Sethi’s neutral-toned confetti styles.
Yellow Diamonds: The Emerging Trend in Engagement Rings
More couples are seeking engagement rings that reflect their personal style rather than adhering to tradition. Yellow diamonds especially those in softer or more earthy tones offer a refined, alternative aesthetic that still feels timeless and romantic.
One designer, Root, recalled a client who brought him a family heirloom: a pear-shaped yellow diamond. He combined it with a matching white diamond to form a heart-shaped engagement ring. Initially, clients were hesitant about yellow diamonds, unsure whether they carried the same prestige. That perception is changing rapidly.
Designer Lau echoes this sentiment. “As our view of what defines a high-quality diamond evolves, I find myself drawn to warmer tones and even imperfect shapes, they feel authentic and special,” she explains. Yellow diamonds are increasingly favoured for their character, individuality, and natural charm.
Why Yellow Diamonds Are Here to Stay
There’s an undeniable joy and brightness that yellow diamonds bring. Whether in soft pastel shades or vivid canary tones, they evoke a feeling of sunshine and optimism, something many people are seeking in their jewellery today.
As the desire for unique and meaningful designs continues to grow, yellow diamond engagement rings are well-positioned to become the next generation’s classic. After all, who can resist a jewel that radiates light, joy, and a touch of the unexpected?
Discover the magic of yellow diamonds, your perfect piece may be one sunny sparkle away.
Botswana is bracing for deeper spending cuts and a widening budget deficit as a prolonged slump in diamond demand pressures its economy, even as the country signals interest in expanding its stake in diamond giant De Beers.
Vice President and Finance Minister Ndaba Gaolathe said the government is preparing to make “drastic” fiscal adjustments to stay afloat, including slashing expenditures and boosting tax revenues.
“The first thing we need to do, obviously, is to live within our means,” Gaolathe said in Washington. “That means cutting spending — doing away with what we believe is some of the fat.”
Diamonds make up a third of Botswana’s revenue and lead its exports, but a prolonged drop in global demand since mid-2023 has forced the government to raise its budget deficit forecast to 9% of GDP — the highest since the pandemic. The downturn has also led to a 3% contraction in the economy this year.
With foreign reserves under pressure, officials plan to cut costs by trimming the government vehicle fleet and curbing travel. They’re also moving to boost revenue through stricter tax enforcement and a new digital transaction levy set to launch in September.
Despite fiscal stress, Gaolathe said Botswana is reluctant to seek financing on international markets, preferring concessional loans. “Let’s borrow where it’s cheapest,” he said.
Bigger De Beers stake The diamond downturn has also accelerated changes in the industry. Anglo American (LON: AAL), which owns 85% of De Beers, has been seeking a buyer for the iconic diamond company. Botswana, which holds the remaining 15% and is De Beers’ primary diamond source, says it wants a greater say in the sale.
“We are very confident that partners are coming forward,” Gaolathe told Bloomberg, noting interest from countries, funds and companies with “deep interest” in the industry. Botswana wants any new owner to be financially strong and committed to the diamond business long-term — and said it is open to increasing its stake to as much as 50%.
The government and De Beers recently signed a 10-year deal to fund global marketing aimed at reviving demand for natural diamonds, which have been losing ground to lab-grown alternatives. New US tariffs on Botswana’s diamonds have since added uncertainty to any near-term rebound.
“High tariffs on our diamonds will have a deleterious effect on us,” Gaolathe warned. The Bank of Botswana expects only a “muted recovery” this year.
Namibia’s diamond industry may be pushed into deeper crisis if United States (US) president Donald Trump pushes ahead with implementing an export tariff of 21% on Namibia.
The governor of the Bank of Namibia has warned that US tariffs on diamonds – which account for 29 per cent of the country’s exports – could push the country into a deeper crisis.
It is already suffering the worst drought in over a century, compounded by the slump in diamond demand and other economic hardships, spiralling unemployment and a malaria outbreak.
“The diamond is already going through a difficult time because of low demand, and competition from lab-grown diamonds, and now you have all these tariffs,” said governor Johannes !Gawaxab*.
Namibia currently enjoys duty-free exports to the US on diamonds and most other products, but President Donald Trump announced a 21 per cent export tariff for the country in his 2 April “Liberation Day” speech.
He subsequently said there would be a 90-day pause before reciprocal tariffs on a whole list of countries were implemented.
Namibia is world’s eighth biggest diamond producer by carat, and the sixth by value, primarily from marine diamonds. Last year 12.4 per cent of its polished diamonds were sold to the US.
*The exclamation mark represents a click sound in Khoekhoegowab, an official language of Namibia.
The decline in the US jewelry sector continues, with yet another drop in the number of retail, wholesale and manufacturing businesses.
The total number fell by 3.4 per cent – just under 800 businesses – to 22,330 year-on-year, according to the latest update from the Jewelers Board of Trade (JBT), which provides commercial credit information. The figures take account of both closures and new business openings.
The figure for the previous quarter, Q4 2024, was -3.2 per cent, and for Q3 2024 it was -3.3 per cent, indicating a steady rate of decline.
The biggest fall in Q1 2025 was among jewelry manufacturers, down 4.6 per cent to 2,119. The number of retailers fell 3.5 per cent, down to 16,959 and the number of wholesalers fell 2.5 per cent to 3,252.
JBT reported the opening of 68 new retail jewelers in the US during Q1.
Prices of fancy color diamonds slipped by “only 0.3 per cent” in the first quarter of this year, according to the Fancy Color Research Foundation (FCRF).
Concerns over the impact of US tariffs were counter-balanced, to some extent, by what it called “signs of market stabilization”.
In Q4 of 2024 the Fancy Color Diamond Index fell by 1.1 per cent, and in the full year 2024 prices suffered their biggest annual fall since FRCF launched the Index in 2014.
In its quarterly update the FCRF noted that despite anxieties about Trump’s proposed tariffs (currently on hold for 90 days) they may actually create a shortage of color diamonds in the US market, which could serve to drive prices up.
“While the headline number shows a mild quarterly decline, the underlying data tells a more optimistic story: certain categories have stabilized, and volatility across others has significantly slowed,” the FCRF said.
“Which may set the stage for a potential rebound in select categories throughout upcoming quarters.
The FCRF also said that GIA’s decision to halt overseas submissions to its US labs, following the tariff announcement, means fancy color stones are being graded in Hong King instead, which is slowing the supply chain.
Yellow fancy color diamonds (all sizes and intensity) suffered the biggest losses in Q1 2025, down by 0.7 per cent (following on from a 2.2 per cent drop the previous quarter). Blues were down 0.5 per cent and pinks just 0.1 per cent.
Roy Safit, CEO of the New York-based FCRF, said: “While global trade anxieties – particularly around renewed US tariff proposals – have undoubtedly created caution across luxury sectors, the fancy color diamond market remained impressively composed.
“In fact, given the sharp rhetoric around import duties and reshoring, many expected a more dramatic correction. Instead, the data shows a contained, strategic repositioning. It speaks to the market’s growing maturity and the defensive appeal of vivid color diamonds.”
The Winston Red, an extraordinary and exceptionally rare diamond, is now on show to the public — making it the only known pure red diamond of its kind currently on display anywhere in the world.
Weighing 2.33 carats, it holds the distinction of being the fifth-largest pure red diamond known to exist. To put that into perspective, fewer than two dozen red diamonds over one carat have ever been recorded, making this a truly exceptional stone.
It’s now on exhibit at the Smithsonian National Museum of Natural History in Washington, D.C., as part of a special showcase of natural coloured diamonds.
A team from the Gemological Institute of America (GIA), working alongside experts from the Smithsonian’s Department of Mineral Sciences and the Paris School of Mines, have conducted an in-depth examination of the gem.
GIA’s president and CEO, Susan Jacques, called the Winston Red “one of the most exquisite gems on Earth,” noting its intense deep-red colour and fascinating history. Red diamonds are incredibly rare, and among the more than one million coloured diamonds studied by GIA, a mere 0.07% were red — and just over half of those qualified for the elite ‘Fancy red’ grade awarded to the Winston Red.
Through advanced research, GIA scientists have identified the diamond’s colour origin and believe it likely came from either Brazil or Venezuela.
Tom Moses, GIA’s executive VP and head of research, shared his personal connection to the stone, having first examined it back in 1987. He recalled its striking deep red hue and historical significance — a diamond once sold by Jacques Cartier in 1938 to the Maharaja of Nawanagar.
The Winston Red is now the star attraction in a new exhibition at the Smithsonian, which features 40 other rare coloured diamonds from the Winston Fancy Color Diamond Collection. The collection was donated by Ronald Winston, son of legendary jeweller Harry Winston.
This exhibition is a rare opportunity to witness one of nature’s most elusive and captivating treasures — a true celebration of colour, history, and craftsmanship.
Botswana’s former president Mokgweetsi Masisi has accused De Beers of funding the party that ousted him from power last November – because he was taking too tough a stance on the critical 10-year diamond deal.
He claims the mining company actively supported the Umbrella for Democratic Change (UDC) which ended 58 years of uninterrupted rule by the Botswana Democratic Party (BDP).
Masisi (pictured) also claims De Beers tried to influence internal politics within the BDP to appoint a more favourable leader and that it deliberately stalled on the signing of a full diamond sales agreement because of tax disputes.
De Beers and the Botswana government agreed the principles of a sales agreement, mining licenses and a package of measures to boost the country’s economy under Masisi, but the deal remained unsigned during his tenure.
It was finally inked three months after he was replaced as president by Duma Boko.
De Beers and the UDC have categorically rejected Masisi’s claims. De Beers said: “We do not provide financial or other support for political purposes to any politician, political party or related organisation, or to any official of a political party or candidate for political office, in any circumstances, either directly or through third parties.”
A UDC spokesperson dismissed Masisi’s claims as outlandish, and challenged him to provide evidence.
