#MarketRebound

There is a prospect of prices bouncing back in 2025 following a 20% decline in 2024. Analysts anticipate a recovery, fueled by early seasonal restocking potentially boosting demand. However, the imposition of additional sanctions on Russian diamonds might contribute to a more substantial price increase later in the year.

The control of supply and the imposition of sanctions are crucial factors. A decrease in rough diamond supply towards the end of 2023 could impact the market in the early part of the following year. Moreover, the possibility of Western nations imposing further sanctions on Russian diamonds adds an element of uncertainty, potentially influencing the global supply.

The state of demand poses uncertainties, particularly in the second-largest market, China. Economic slowdown and a potential property crisis contribute to this uncertainty. Yet, historical government interventions aimed at economic support provide a glimmer of hope for stability in demand.