Optimism Amid Trade Advocacy for Diamonds

February is a slightly strange month. It’s a day or two shorter than the rest, which gives it a sense of ease, as though it passes a little more seamlessly.

That said, it’s an important month for the diamond industry. By now, we have a clearer view of how the holiday season played out, and jewelers have a better handle on their inventory requirements. Valentine’s Day also looms on the 14th, with the National Retail Federation (NRF) expecting record spending, including around $7 billion on jewelry, which is more than any other category.

Historically, February has been a constructive month for diamond trading, driven by jewelers replacing sold inventory. While those cycles have evolved as buying patterns and consumer habits have shifted, broader macroeconomic forces, geopolitics, and volatile gold and silver prices are also shaping activity.

Even amid that uncertainty, there is a sense of stability, albeit at lower levels than in the past. Retail earnings published so far, along with the NRF survey, suggest consumers remain engaged with jewelry. The nature of that engagement may be different, but it offers some cause for optimism and a base from which to build.

This blog first appeared in the February 2 Pressing Matters Executive Memo. Read the full memo here, Pressing Matters, featuring the following sections:

• In Focus: All the News

• In Depth: What India Can Learn From Belgium

• Video Take: Too Many Diamonds

• Chart Check: LVMH’s Watch & Jewelry Revenue

• What I'm Reading

• Coming Up

• Pic of the Week

Artisanal Luxury: De Beers London and GemFair have launched a 12-piece capsule jewelry collection, marking the first time GemFair’s artisanal-mined diamonds are featured in finished jewelry. Included in the collection is this Toi et Moi ring. (Image credit: De Beers)