Economic Uncertainty Hits Diamond Exports, but Gold Jewellery Sees Growth in Jan 2025

In January 2025, diamond exports fell due to economic instability and tariff threats, while gold jewellery exports grew by 20.48%. With economic uncertainty pushing consumers to invest in gold as a safe-haven asset, diamonds faced subdued demand, particularly in major markets.

Diamond Exports and Imports Decline

In January 2025, gems and jewellery exports dropped by 7.01%, reaching $2237.14 million, down from $2405.78 million in the same period last year, according to the Gem & Jewellery Export Promotion Council (GJEPC).

This decline is attributed to ongoing economic uncertainty, further compounded by tariff threats from US President Donald Trump following his return to power. The value of imports also saw a significant drop, with imports for January 2025 standing at $1421.61 million, a decrease of 37.83% from $2286.55 million in January 2024.

The export of Cut & Polished Diamonds in January 2025 fell by 12.48%, totalling $1015.98 million, compared to $1160.79 million the previous year. The global slowdown in consumer demand, especially in major markets, affected India’s diamond exports. India is the world’s largest diamond cutting and polishing hub.

Alongside this, the import of cut & polished diamonds plummeted by 67.04%, falling to $54.0 million from $163.87 million last year.

Gold Jewellery Exports Grow Amid Economic Uncertainty

However, the export of gold jewellery experienced growth, rising by 20.48% to $949.46 million, compared to $788.06 million in January 2024. The global economic uncertainty has prompted many consumers to turn to gold as a safe-haven investment, especially as gold prices continue to rise.

Coloured gemstones, a niche segment, saw exports decline by 9.62%, totalling $353.92 million, down from $391.57 million the previous year. While this category faced a downward trend, it remains relatively insulated from broader market fluctuations.

The impact of tariff threats and global economic instability, exacerbated by Trump’s administration, is clearly visible in the overall decline in global trade activities during this period.

Conclusion

While the diamond industry faces challenges due to global economic instability and tariff threats, the gold jewellery market thrives as consumers turn to gold as a safer investment in turbulent times.

Despite the struggles faced by certain segments like coloured gemstones, the resilience of the gold jewellery sector suggests that demand for precious metals continues to remain strong.

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