Prices of fancy colour diamonds recorded a slight decline in the first quarter of 2025 amid tariff uncertainties, the Fancy Color Research Foundation (FCRF) said.

The overall Fancy Color Diamond Index (FCDI) was down 0.3 per cent during the quarter in review. By comparison, prices dipped by 1.1 per cent in the previous quarter. The index declined by 2.5 per cent over the trailing 12 months, reflecting a broader softening across several categories, but there were signs of recovery, FCRF said. 

Roy Safit, CEO of FCRF, explained, “While global trade anxieties – particularly around renewed US tariff proposals – have undoubtedly created caution across luxury sectors, the fancy colour diamond market remained impressively composed. In fact, given the sharp rhetoric around import duties and reshoring, many expected a more dramatic correction. Instead, the data shows a contained, strategic repositioning. It speaks to the market’s growing maturity and the defensive appeal of vivid colour diamonds.”

A notable development during the quarter were steady prices across several sub-categories, particularly in the high-saturation segment. Among these, prices of fancy vivid yellow diamonds (all sizes) remained flat in Q1 2025 as opposed to a 2.2 per cent decline recorded in Q4 2024. 

“While this is not a full recovery, it does signal growing support at the lower end of the pricing curve, hinting at renewed interest or a slowdown in selling pressure for this vivid sub-category,” the foundation said.

Underlying data indicates stability in certain categories and easing volatility, which could result in a potential rebound in select categories throughout upcoming quarters.

FCRF noted that US tariffs could create a shortage in fancy colour diamonds in the US market, which could further drive prices. Additionally, with all fancy colour diamonds now required to go through the GIA laboratory in Hong Kong, a slower supply chain is anticipated. “This index reflects Q1 activity as recorded in the global trading centres, and we will continue to monitor any effects that may emerge in the quarters ahead,” the foundation said.
 

Source: FCRF