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Luxury Diamond Market Trends: How the Market Responds to Price and Demand Changes in 2025

Luxury Diamond Market Trends: How the Market Responds to Price and Demand Changes in 2025

Waleed Farouk
Prices for luxury fancy-color diamonds fell by 0.5% in the second quarter of the year. However, price increases in several sizes and intensity grades indicate early signs of market stabilization, according to the Fancy Color Research Foundation (FCRF).
Pink diamond prices dipped slightly by 0.4% compared to the previous quarter, yet optimism remains. Pink stones dominated four out of the top five gainers in the list. Prices for fancy-vivid pink diamonds weighing 1 carat rose 1.8%, while fancy-intense pink diamonds of the same weight increased by 1.5%. Ten-carat fancy-vivid pink diamonds rose 1.2%, and five-carat fancy-vivid pink stones climbed 1.1%.
Blue fancy-color diamonds declined by 0.3%, less than the 0.5% drop seen in the first quarter. The 1.50-carat fancy-vivid blue category was the leading gainer with a 1.5% increase. Blue diamonds weighing 8 carats increased 0.7%, and 1.50-carat fancy-blue stones stabilized after a 0.3% fall in Q1.
Conversely, fancy yellow diamonds declined by 0.7%. They occupied four of the five largest drops, including a 3% fall for fancy-intense yellow diamonds at 3 carats, a 2.6% drop for the 10-carat category, a 2.5% decrease for 2-carat stones, and a 2.2% decrease for 1-carat stones.
Since 2005, FCRF data show that yellow diamonds have increased by about 48%, pink diamonds have surged 391%, and blue diamonds have risen 241% in value.
The foundation commented that with price reversal signals and gains in various sizes and intensities, especially for highly saturated colors, the market appears poised for a resurgence in demand in the second half of the year.
On a year-over-year basis, the overall index dropped 2.4%, despite slight growth in some categories. Pink diamonds fell 1.4%, blue fancy-color diamonds decreased 1.9%, reflecting relative stability, while yellow diamonds fell 5%.
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