Diamond industry news recap -January 16, 2025
Diamond Industry News Recap:
This Week in Diamonds & Jewelry: Industry Highlights
As the diamond and jewelry industry continues to navigate challenges and opportunities, this week’s stories highlight resilience, market trends, and critical developments. From innovative solutions to devastating losses, here’s your weekly recap of the top news shaping the industry:
Oversize Diamonds: Holding Strong in a Weak Market
Oversize diamonds, polished stones just shy of round numbers like 1.50 or 3.00 carats, continue to outperform other categories amid market downturns. Their popularity in the U.S. bridal market stems from offering a larger appearance at a lower price point. These diamonds have maintained narrower discounts compared to other sizes during 2024, driven by their desirability and structural pricing advantages. This trend reflects a growing consumer emphasis on value and spread.
UAE Shifts VAT Rules for Precious Stones
The UAE has implemented a reverse charge VAT mechanism, transferring the responsibility for tax reporting from sellers to buyers in transactions involving diamonds, pearls, and precious metals. Effective January 1, 2025, this move aims to reduce administrative burdens and improve cash flow for businesses, aligning the UAE with global best practices. The change is part of the government’s ongoing commitment to support the precious metals and gemstones trading sector.
LA Wildfires Devastate Jewelry Businesses
The Los Angeles wildfires have destroyed at least two jewelry stores, displacing families and businesses. Elyse Walker and Jaimie Geller Jewelry, both located in Pacific Palisades, are among the affected. Jewelers have expressed heartbreak but vow to rebuild. The International Gemological Institute and industry organizations have extended thoughts and prayers to those impacted, showcasing solidarity within the community.
Zambia Reinstates Export Duty on Precious Gemstones
The Zambian government has reinstated a 15% export duty on gemstones, shocking the industry. Effective January 1, the tax adds to an already significant 6% mineral royalty tax and a 30% corporation tax. This decision impacts companies like Gemfields, which operate the Kagem emerald mine, and raises the total effective tax rate to 21%. The move has been met with criticism from industry stakeholders, who plan to lobby for its reversal.
Jewelers Relief Fund Reopens to Support LA Fire Victims
The Jewelers Relief Fund, managed by Jewelers of America and the Diamond Council of America, has reopened to aid businesses affected by the Los Angeles wildfires. Donations will go directly to jewelry retailers and manufacturers who sustained physical damages. The initiative highlights the industry’s collective effort to support its members during times of crisis. Contributions can be made through Jewelers.org.
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