Vegas Bound, Diamond Trade Feels the Squeeze
- Avi Krawitz
- 4 days ago
- 4 min read
It’s that time of year again — Vegas is calling. As the industry gears up for its biggest week on the calendar (June 4 to 9), I’m looking forward to being back on the ground after missing last year’s shows. From the show floors to the late-night conversations, there’s no better place to take the pulse of the trade.
I’ll be covering the trends, the stories, and the people shaping the future of the diamond and jewelry industry — so if you’re around and want to connect, collaborate, or just grab a coffee, message me. It’s always great to put faces to names (and keep the conversation going beyond the booths).
Speaking of conversations, there’s still time to apply for the Business of Jewelry Roundtable, with our first session happening Wednesday. Don’t miss this chance to be part of a new kind of industry dialogue: Apply here.
Hot Off The Diamond Press
>>> Here are a few highlights from across my channels...
The Return of Diamond Category Marketing Isn’t Enough (Analysis)
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This Week in Diamonds (News Roundup)
Now for this week’s Pressing Matters:
>>> Rough: Miners Feeling the Squeeze
Over the past two years, sluggish market conditions have led to a steady stream of closures and care-and-maintenance announcements across the diamond mining sector — primarily affecting privately owned, small-scale alluvial operations. But more recently, financial stress has begun to impact mid-tier miners with higher visibility and broader market exposure.
Lucara Diamond Corp., operator of the Karowe mine in Botswana, has publicly questioned its ability to remain a going concern over the next 12 months. And last week, Lucapa Diamond Company entered voluntary administration as it explores a potential restructuring or sale of the group.
Lucapa (with a “P”), like Lucara (with an “R”), is known for recovering high-value rough, primarily from its Lulo alluvial mine in Angola. It has also invested heavily in a long-running exploration program to locate the primary kimberlite source of those alluvial diamonds.
The financial strain on companies like Lucapa is largely driven by falling diamond prices. At Lulo, the average price per carat dropped 27% in 2024 to $1,980, contributing to another annual loss — this time totaling $2.8 million.
The economics of diamond mining are particularly unforgiving when production volumes are low. With high fixed costs and ongoing exploration expenses, companies like Lucapa have a limited buffer. Even with a relatively high-value product, their breakeven price per carat is elevated. A continued slide in prices threatens not only profitability but viability.
As price pressure persists, more miners — particularly those with small-scale, high-value operations — may face similar financial crossroads.
>>> Polished: Sarine Sounds the Alarm on Diamond Manufacturing
Sarine Technologies reported a 31% drop in first-quarter revenue to $7.7 million, reflecting the mounting pressure on the natural diamond manufacturing sector.
As a leading supplier of equipment for rough planning and polishing, Sarine is closely tied to upstream activity in the diamond pipeline. With diamantaires significantly reducing rough purchases, demand for Sarine’s technology has declined accordingly. The company posted a net loss of approximately $100,000 for the quarter.
Sarine attributed the slowdown to a combination of structural and cyclical challenges: continued growth in the lab-grown diamond segment, a sluggish recovery in the Chinese retail market, and growing uncertainty surrounding US tariffs on diamonds. These factors have dampened sentiment across the trade and contributed to reduced investment in manufacturing capacity.
Most notably, the company signaled a cautious outlook. It is actively reviewing its operations and curbing expenses until conditions improve. Sarine expects current headwinds to persist through the second quarter, with hopes for recovery resting largely on how demand shapes up for the year-end holiday season.
>>> Retail: Shaky Sentiment, Softer Sales
Consumer sentiment in the US continued to weaken in May, as inflation concerns and uncertainty over tariffs weighed on public confidence, according to two reports released this past week.
The University of Michigan’s preliminary consumer survey showed a modest 1.4-point drop for the month, extending a downward trend that has now brought overall sentiment nearly 30% lower since January. The survey found that more Americans are expecting prices to rise, and many remain unsure about the direction of trade policy — especially in light of ongoing tariff debates.
That uncertainty is already affecting spending habits. S&P Global Ratings highlighted a pullback in discretionary spending, particularly in the leisure and high-ticket lifestyle categories. While the slowdown has been most visible in sectors like boating and powersports, it may signal trouble ahead for luxury goods — including jewelry.
For the jewelry trade, this shift in sentiment comes at a delicate time. Sales have already been under pressure, and consumers appear more hesitant to make emotionally driven or status-based purchases. With the all-important holiday season still months away, wholesalers and retailers may need to manage inventory and marketing strategies carefully — and be prepared to pivot if sentiment doesn’t improve.
The combination of inflation, tariff tensions, and shifting consumer priorities is creating a more cautious retail environment. While affluent buyers remain active, the mid-tier market — especially in bridal and fashion jewelry — could see more hesitation in the months ahead.
Chart Check
Post-Covid Lows: Hong Kong’s polished diamond imports fell 14% year-on-year to $2.73 billion in the first quarter, while exports dropped 18% to $2.53 billion, according to the Diamond Federation of Hong Kong, China. It marked the weakest first-quarter import level since 2020 — at the height of the pandemic — and, prior to that, the lowest since 2009. Shipments to the US declined 16%, while exports to mainland China fell 13%, reflecting ongoing caution in two of its key markets. Meanwhile, rough diamond trade through the city plummeted 62%, though Russia remained its top source for rough imports.
Coming Up
Sotheby’s Fine Jewelry sale, London: May 20 to June 3
Christie’s Magnificent Jewels auction, Hong Kong: May 27
Business of Jewelry Roundtable: May 28
Pic of the Week
