In Surat, India’s famed “Diamond City”, where 14 out of every 15 natural diamonds are cut and polished, a deepening crisis is unfolding.
For Kalpesh Patel, a 35-year-old owner of a small diamond cutting and polishing unit, this year’s Diwali could mark more than just a festival of lights — it may signal the lights going out on his eight-year-old business. Patel employs 40 workers transforming rough stones into polished gems destined primarily for the United States. But with the recent announcement by US President Donald Trump of a 50% tariff on imports from India — taking the total duty on cut and polished diamonds to 52.1% — the industry’s already fragile state may tip into collapse.
The US is India’s largest export market for diamonds, accounting for over one-third of total shipments. In the 2024–25 financial year, India exported $4.8 billion worth of cut and polished diamonds to the US, out of a total $13.2 billion worldwide. For many small and medium-sized manufacturers in Surat, Ahmedabad, and Rajkot — employing more than two million people — this trade lifeline is now under severe threat.
An Industry Already Under Pressure
The tariffs arrive on top of multiple recent challenges. The COVID-19 pandemic slowed global luxury demand, the Russia-Ukraine conflict restricted access to rough diamonds, and the G7 ban on Russian stones further strained supply chains. Salaries for many diamond workers in Gujarat have already been halved in recent years, with some forced into poverty-level incomes. Tragically, industry unions report dozens of suicides linked to the ongoing downturn.
Lab-grown diamonds have added to the pressure, offering consumers a lower-priced alternative — often just 10% of the cost of natural diamonds — and proving difficult to distinguish without professional laboratory testing, such as that provided by DCLA. This shift in consumer preference is eating into the market for natural stones, further squeezing margins for cutters and polishers.
Declining Trade Figures
According to the Gem and Jewellery Export Promotion Council (GJEPC), India imported $10.8 billion worth of rough diamonds in 2024–25, a 24% drop from the previous year. Exports of cut and polished natural diamonds fell nearly 17% year-on-year.
Industry leaders warn that if the new US tariffs remain in place, as many as 200,000 workers could lose their jobs in Gujarat alone.
Ripple Effects Beyond India
The impact will not be confined to India. US jewellers — around 70,000 businesses — will also feel the pressure as higher prices could dampen consumer demand. This could disrupt supply chains, delay deliveries, and push customers towards alternative products.
Finding a Way Forward
Some in the industry see an opportunity to strengthen domestic demand and diversify exports towards Latin America, the Middle East, and other emerging markets. India’s domestic gems and jewellery market is projected to grow from $85 billion to $130 billion within two years, offering a potential buffer.
For now, though, the threat is real and urgent. Without relief on tariffs, support for natural diamond certification, and a coordinated strategy to protect jobs, the world’s biggest cutting and polishing centre risks losing its global dominance — and with it, a key part of the natural diamond supply chain.
As Patel puts it, “Without help, the business will lose its shine forever.”
South Africa is to sign up to the milestone Luanda Accord, which is funding a global campaign to promote natural diamonds.
It joined the governments of Angola, Botswana, Namibia, Sierra Leone and the Democratic Republic of the Congo, in June in pledging to contribute 1 per cent of the value of their rough sales annually.
But the move was only approved South Africa’s cabinet last week. Minister in the Presidency Khumbudzo Ntshavheni and confirmed the decision on 7 August, committing 1 per cent of the annual revenues generated from rough diamond sales to a global marketing fund led by the Natural Diamond Council (NDC).
South Africa, the world’s sixth biggest diamond producing nation by value, saw sales down by 21 per cent last year amid the global slowdown.
The country’s mining minister mining minister Gwede Mantashe was listed as a signatory to the Luanda Accord in an official communique after the agreement.
But a conflicting Reuters report said South Africa did not actually sign at the time and has only done so now.
The Luanda Accord is seen as a potential turning point for the sector, aiming to rebuild consumer trust and interest in natural diamonds over lab growns, by emphasizing their origin, authenticity, and community impact.
It will highlight the positive economic and social contributions of the natural diamond industry to producing nations and their communities.
Governments of the African diamond producing nations have been joined by the Antwerp World Diamond Centre (AWDC), African Diamond Producers Association, India’s Gem and Jewellery Export Promotion Council (GJEPC) and the Dubai Multi Commodities Centre (DMCC).
Indian jewelry retailer Tanishq is introducing in-store diamond evaluation some of its 500-plus outlets, as part of an ongoing partnership with de Beers.
Customers will be able to see proof that the diamond they’re buying is natural rather than lab grown, thanks to the De Beers SynthDetect machine, which works with loose and mounted stones.
They can also have diamonds tested with Lightscope, which measures light performance, and with other equipment for performance, inclusions, and laser markings.
Tanishq, part of the Titan group, says the launch of its Diamonds Expertise Centres is designed to give customers greater peace of mind by presenting complex gemological data as simple, visual insights. It says the centers are a “first of a kind initiative”.
The first three are in Bengaluru, but the company plans to expand them to 200 stores this year and eventually to all its outlets.
Ajoy Chawla, CEO at Tanishq, said: “Our aim is to set a new standard in natural diamond retail — one that goes beyond traditional display and transforms the buying journey into a transparent, educational, and truly immersive experience.”
Last August Tanishq and De Beers jointly announced that they’d be working together to promote natural diamonds in India, now the world’s second biggest diamond market.
The partnership leverages Tanishq’s retail presence and De Beers’ expertise and proprietary diamond verification technology.
US President Donald Trump today (6 August) doubled the tariff on all imports from India to 50 per cent, as a punishment for its oil purchases from Russia.
India’s diamond industry, already reeling from confirmation last week of a 25 per cent reciprocal tariff, is in shock that their goods will be subject to a second 25 per cent surcharge.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” Trump said in an executive order.
“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 per cent.”
The first 25 per cent tariff comes into force tomorrow (Thursday 7 August) and the new, punitive tariff is applicable three weeks from now, on 27 August.
The US is the single largest destination for Indian diamonds and gems, accounting for nearly $10bn or about 30 per cent of India’s annual gems and jewelry exports.
Industry leaders were already warning of the dire consequences of a 25 per cent tariff. Now they are facing an unprecedented body blow with the introduction of a 50 per cent double-tariff.
India’s Ministry of External Affairs said in a statement today that the tariffs were “unfair, unjustified and unreasonable”.
It defended its Russian oil purchases, saying they were “based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India”.
The US imposition of an extra tariff was, it said, “extremely unfortunate”.
When choosing a precious metal for a custom-made ring, the two most popular options are 18-carat gold andWhen choosing a precious metal for a custom-made ring, the two most popular options are 18-carat gold and platinum. Both metals are prized for their beauty, durability, and prestige, but they differ significantly in terms of cost, weight, and long-term maintenance. Whether you’re designing a bespoke engagement ring, a wedding band, or a statement piece, understanding the key differences between 18K gold and platinum will help you make an informed decision.
Material Comparison: 18K Gold vs. Platinum
1. Purity and Composition
18K Gold is made up of 75% pure gold and 25% alloy metals (such as copper, silver, or palladium), which influence its colour and strength. It is available in yellow, white, or rose tones.
Platinum is typically 95% pure, making it denser and more hypoallergenic than gold. It retains its naturally white colour over time without the need for rhodium plating.
2. Weight
Platinum is approximately 60% heavier than gold. For example, a ring that weighs 5 grams in 18K gold would weigh about 8 grams if made in platinum. This weight difference gives platinum rings a more substantial feel but also impacts the price.
Cost Breakdown: Gold vs. Platinum Ring
Example: Classic Solitaire Ring Design
Feature
18K Gold (5g)
Platinum (8g)
Metal Cost per Gram
AUD $123-145
AUD $73 -85
Total Metal Cost
AUD $615–725
AUD $584–680
Crafting Charges
AUD $300–500
AUD $400–600
Total Estimated Cost
AUD $915–1125
AUD $984–1280
Note: These figures are approximations and vary based on ring design complexity, jeweller’s rates, and daily bullion prices.
Why Choose 18K Gold?
Affordable luxury: Gold offers the prestige of a precious metal at a more accessible price.
Colour variety: Choose from yellow, white, or rose tones to suit your personal style.
Classic and timeless: 18K is the standard for luxury jewellery, combining durability with rich colour.
Why Choose Platinum?
Exceptional durability: Platinum is more resistant to wear and ideal for heirloom pieces.
Hypoallergenic: A top choice for sensitive skin.
Low-maintenance: Maintains its natural white lustre without plating.
Choosing between 18K gold and platinum comes down to your budget, lifestyle, and personal preferences. If you’re looking for a lighter, more affordable option with colour flexibility, 18K gold is a great choice. If you value longevity, weight, and purity, platinum may be worth the higher investment.
Either way, a well-crafted ring in either metal will provide a lifetime of beauty and meaning. Always consult with a reputable jeweller to discuss your design and get an accurate quote based on current metal prices.
De Beers is expected to report a loss for the first half 2025 despite an uptick in sales during the second quarter.
Sales for H1 were down 13 per cent year-on-year, according to a production report published last Thursday (24 July) by parent company Anglo American. But Q2 showed a 14 per cent increase on the same period in 2024.
De Beers said the last three sights raised $1.185bn, buoyed by the sale of specific assortments at lower margins due to “stock rebalancing initiatives” or discounts on inventory.
So although revenue was higher compared with Q2 2024 ($1.039bn) Anglo said it expects to report negative underlying EBITDA for De Beers in the first half of 2025.
It also noted that “a formal process for the sale of De Beers is advancing, despite the current challenging market conditions”.
Rough diamond trading conditions remained challenged, it said, though improved industry sentiment at the end of the first quarter led to stabilization of polished diamond prices.
“But uncertainty surrounding U.S. tariffs announced in April subsequently slowed polished trading,” it said.
“In contrast to the ongoing challenging trading conditions, consumer demand for diamond jewellery remained broadly stable in the first half of the year.”
Meanwhile production decreased by 36 per cent to 4.1m carats in Q2, reflecting a planned production response to the prolonged period of lower demand. The biggest quarterly drops were in Botswana (-44 per cent) and Canada (-46 per cent). South Africa production actually rose 17 per cent.
Production guidance for 2025 is unchanged at 20 to 23m carats (actual production for 2024 was 24.7m carats) and average per carat price at $94 (actual average for 2024 was $152).
Dubai’s ascent in the global diamond trade is undeniable, yet its polished diamond business now confronts a critical threat. Opaque regulations, punitive taxes, and mounting costs are pushing diamantaires, particularly from key markets, to look elsewhere – a stark reminder of past industry shifts that demand urgent, decisive action to preserve its hard-won leadership.
A century ago, Dubai stood as the undisputed pearling capital of the world, yet the advent of cultured pearls ushered in an overnight shift that shattered that dominance, forcing the emirate to adapt, pivot, and ultimately thrive through oil, trade, and tourism. History, however, whispers a stark warning: once a hub loses its competitive edge, recovery often remains out of reach. Today, as Dubai asserts its pre-eminence in the global diamond sector, particularly as the world’s leading hub for rough diamonds since 2021 and a top-three global centre overall, its polished diamond business stands at a similar precipice. Mounting tax ambiguities, punitive regulations, and soaring operational costs threaten to drive traders away, risking a mass exodus that could see its hard-won sparkle fade for good.
Firstly, it is important to acknowledge that Dubai’s journey to becoming a global trading powerhouse is truly exceptional. Dubai’s rise to eminence did not come easy. I have had the honour to work for over 12 years with Ahmed Bin Sulayem, Executive Chairman and CEO at Dubai Multi Commodities Centre (DMCC). Under his outstanding leadership, Dubai’s diamond sector had to sail through difficult weather, often culminating in storms instigated by NGOs who on their turn often were pushed against Dubai by competing entities.
However, bearing in mind the Ruler of Dubai, HRH Sheikh Mohammed bin Rashid Al Maktoum’s mantra: “In the race to excellence there is no finish line,” Dubai meticulously cultivated an ecosystem of world-class infrastructure, unmatched connectivity, and a business-friendly environment.
This soon propelled Dubai to the forefront of the gold and rough diamond trade. In 2024, its polished diamond trade alone surged past USD 13.1 billion, contributing to a remarkable cumulative total (rough and polished) of USD 57.5 billion over the past five years. Growing by a staggering 32 per cent to USD 16.9bn in 2023, polished diamonds represent nearly 50 per cent of the UAE’s total diamond trade, underscoring their pivotal role in its strategic expansion.
In the same spirit, any business, company and government entity – no matter how successful it becomes – has to keep a deep sense of self-criticism and always check for weaknesses and threats. Indeed, despite these impressive figures and inherent advantages, a significant share of the global polished diamond trade, particularly from key players in Israel, continue to bypass the UAE in favour of direct routes to established markets such as the United States, Antwerp, and Hong Kong. Through a combination of predictable regulatory landscapes, deep pools of experienced professionals, and often, more favourable tax treatments for polished diamonds, each of these centres have instilled greater business confidence, and all this despite the recently enacted U.S. trade tariffs. For Dubai to truly hold on to, and leverage opportunities presented by agreements like the Abraham Accords in boosting the UAE-Israel polished diamond trade, the UAE must urgently address its existing and forthcoming structural barriers.
One of the most critical obstacles is the existing VAT framework. While the UAE applies a reverse-charge VAT mechanism to rough diamonds, this crucial benefit does not consistently extend to polished diamonds, thereby diminishing Dubai’s global competitiveness. Although Cabinet Decision No. 127 in January 2025 aimed to extend the VAT reverse-charge mechanism to polished diamonds and a broader range of precious stones, for many, this feels like too little, too late. This inconsistency, coupled with high corporate tax rates directly undermines the UAE’s ability to attract high-value polished diamond activity and compete effectively. As an example, in Belgium and the U.S., inter-company diamond trades are entirely VAT exempt.
As an additional issue, albeit one for another day, the culpability of highly-paid consultants in this evolving crisis, cannot be overstated. Global advisory firms like PwC find themselves in a glaring conflict of interest, reportedly advising the UAE Ministry of Finance on imposing these very taxes, while simultaneously counselling entities like the Dubai Multi Commodities Centre (DMCC) on mitigating them. This duality has only amplified uncertainty, leaving traders in a state of paralysis. One must question what advice these consultants offer their clients in competitive markets, and how they are delivering tangible growth.
Beyond VAT, the additional spectre of B2B taxation and opaque regulation has also made Dubai less competitive. Anecdotal statements from industry stakeholders include fines being issued for unclear reasons, with practically no recourse for contestation due to the absence of any industry ombudsman, while significant taxes and fees are actively pricing out SMEs from the market.
While praise should be given to the UAE government for its equally giant leaps in combatting anti-money laundering and counter terrorism financing, AML regulations have now become more stringent than in any other major centres. Diamantaires in Dubai are effectively being treated like banks, with every transaction above AED 55,000 (USD 15,000) requiring full disclosure. Even an elementary cost comparison with other key markets reveals some startling comparisons. For instance, Belgium has a special corporate incomes tax regime for diamond traders which is reportedly substantially cheaper than Dubai, while any large companies in the emirate paying amounts over USD 3 million in interest (or 30 per cent of EBITDA, whichever is higher) are not eligible for tax deductions, even if paid to banks. Operating expenses in Dubai are also notorious, running an estimated 35 per cent higher than its competitors, while shipment and customs charges are 45 per cent steeper than in Belgium or the U.S. As a result, Dubai has already seen some lab-grown diamond businesses move their operations to Belgium as a direct consequence of these mounting pressures.
This situation echoes the stark warning from Dubai’s pearling legacy, which didn’t vanish due to competition, but inaction in the face of disruptive change. The diamond sector, now a cornerstone of its economic diversification, faces a similar fate. Traders are already voting with their feet, convinced the environment is becoming less hospitable, and once they depart, reclaiming their business will be an insurmountable challenge.
All this being said, this isn’t the first time the UAE has found itself in a similar situation. In the face of mounting pressure on gold and rough diamonds, the UAE Cabinet recognised the imperative for swift action, and on 1st May 2018, decisively reversed the tax on both commodities. This pivotal and wise decision was taken based on a DMCC in-depth analysis of Dubai’s competitive position in the rough diamond trade and not only saved both industries from decline but allowed them to flourish, cementing Dubai’s position as a top global destination.
The same decisive intervention is now urgently required for Dubai’s polished diamond sector. By extending the VAT reverse-charge mechanism consistently to polished diamonds, enhancing corporate tax incentives, easing the administrative burden of AML for legitimate trades, and ensuring regulatory clarity ahead of the corporate tax filing deadline on 30th September 2025, the emirate still has time to avoid both the legal and compliance ambiguities that lead to costly retrospective adjustments. Additionally, this proactive approach will attract high-value polished diamond activity, enabling the emirate to fully leverage its underutilised bonded free zones, while highlighting Dubai’s strategic advantages and robust infrastructure.
Global market volatility and shifting tariff regimes present a timely opportunity for the UAE to assert and uphold itself as a world leader in polished diamonds. Policy enhancements, particularly around taxation and regulation, could yield substantial gains in trade flows, investment, and economic diversification, while unequivocally elevating the UAE’s prestige within the international gemstone sector. Dubai’s diamond empire stands at a crossroads where a sobering assessment of its competitiveness and decisive action will undoubtedly dictate its ongoing success or untimely demise. As there is no finishing line in the search for excellence, the time to act is NOW.
Gem Diamonds has become the latest casualty in a deepening crisis engulfing the global diamond industry, announcing sweeping cost-cutting measures as the market buckles under falling prices and the growing popularity of lab-grown alternatives.
The Africa-focused diamond producer reported a 43% drop in revenue to $44.7 million for the first half of its financial year. Carat sales fell 22% to 44,360, while the average price per carat plunged 26% to $1,008.
In response, it said it would reduce operating costs by $1.4 million to $1.6 million per month and cut around 250 jobs, or 20% of its workforce, at its Letšeng mine in Lesotho. Executives have also taken voluntary salary reductions.
“Considering the prolonged weakness in global diamond prices, compounded by a weak dollar and ongoing US tariff uncertainties, Gem has implemented decisive measures to conserve cash and protect shareholder value,” the company said.
Despite meeting production targets, Gem Diamonds admitted it has not been shielded from sustained pressure on rough diamond prices and adverse currency movements. Investors reacted accordingly, with the company’s shares falling more than 20% in early trading on the London Stock Exchange. They partially rebound to 5.5 pence in late trading, valuing the company at £7.7 million ($10 million).
Gem Diamonds’ measures mirrors those of its peers. just last week, Burgundy Diamond Mines (ASX: BDM) halted open pit operations at its Ekati mine in Canada’s Northwest Territories, triggering mass layoffs.
All three operating diamond mines in the region — Ekati, Diavik and Gahcho Kué — are now facing eventual closure, with Diavik scheduled to close in 2026 and Gahcho Kué expected to cease operations by 2030. Ekati’s long-term future remains uncertain.
Getting worse Signs of a worsening crisis in the diamond sector were already clear in the first three months of 2025. De Beers, the world’s largest producer by value, saw a 44% drop in revenue in Q1 and is sitting on $2 billion in unsold inventory. It plans to cut over 1,000 jobs at its Debswana joint venture in Botswana.
Russia’s Alrosa, hampered by sanctions, reported a 77% plunge in profits and has halted production at key sites.
Petra Diamonds (LON: PDL) is fighting to survive after a 30% drop in sales and the sudden departure of its CEO.
Lucapa (ASX:LOM) entered voluntary administration in Australia, and Sierra Leone’s Koidu Limited shuttered operations and laid off more than 1,000 employees after losing $16 million to labour strikes.
Even Lucara (TSX: LUC), which operates in both Botswana and Canada, has flagged a “going concern” risk despite hitting production records.
All eyes are now on De Beers. Once synonymous with manufactured scarcity and aggressive branding, the company is up for sale. Parent company Anglo American (LON: AAL) has cut its valuation by $4.5 billion in just over a year. No buyers have emerged, but Botswana is reportedly pushing to take a controlling stake.
The number of US jewelry businesses shrank yet again in Q2, according to the latest update from the Jewelers Board of Trade (JBT), which provides commercial credit information.
The figures show a long-term decline continuing at a steady rate, with figures for the last four quarters showing a year-on-year fall of around 3 per cent in the total number of retailers, wholesalers and manufacturers.
The JBT statistics take account of new businesses as well as ceased operations.
The biggest decline, in percentage terms, was manufacturers. There are 104 fewer today than there were a year ago, down 4.7 per cent to 2,104.
There are 516 fewer retailers, down 3.0 per cent to 16,873, and 86 fewer wholesalers, down 2.6 per cent to 3,241.
During Q2 there were 28 closures due to mergers or takeovers, three bankruptcies and 143 businesses that ceased activity for other reasons.
In addition, 561 company credit ratings were downgraded in Q2 2025, and 639 upgraded – compared to 633 downgrades and 663 upgrades in the same quarter previous year.
JBT also provides figures for Canada, which has a far smaller jewelry sector. It shrank by 1.8 per cent.
Botswana president Duma Boko has criticized De Beers for “not doing its job” in an unusually forthright attack.
“Maybe we should take over and sell them (the diamonds) ourselves,” he told an audience last week on a visit to Lesotho, while lamenting his country’s struggling economy.
His comments come just six months after his government signed a long-overdue 10-year sales and mining agreement with De Beers.
His predecessor Mokgweetsi Masisi had threatened on several occasions to walk away from a deal that has been in place since 1969, as he demanded a greater share of the diamonds.
Boko, who swept to power in a surprise victory last October, was seen as less combative in his dealings with De Beers, and quickly got the deal signed, after Masisi’s delays.
But Boko’s comments last week indicate a growing frustration as Botswana battles poverty and high unemployment.
He said diamonds discovered and recovered in Botswana should benefit Botswana.
“So if the diamonds are there, how is the country broke?” he said.
“Now they’re not being sold. Who is selling them? De Beers. Ah, then De Beers is not doing its job. Maybe we should take over and sell them ourselves.
“That’s what we should do. And that would be deemed very radical.
“But the country needs the money and it has the diamonds and somebody who’s supposed to be selling the diamonds is not doing the job.
“Oh, no, and we are simply sitting on our laurels folding up our arms and hoping beyond hope …
“We will take the diamonds and see what we can do with them. They are ours. These diamonds are ours. And so before the end of this year, something very drastic in that space will happen. If it doesn’t happen, we will die trying. By all means.”
