Joshua Freedman

New York, NY – September 2, 2026 – Diamond prices extended their recovery in August, with small stones seeing stronger increases and the 1-carat category posting gains for the first time in 15 months. The categories that suffered the most in 2025 saw an ongoing rebound as supply cuts paid off and demand stabilized. Trading picked up after the summer slowdown. Round diamonds performed better than fancies.

The US diamond trade has a predictable summer rhythm. Business slows in early July as dealers head off for Independence Day, then picks up again in the final week of the month as they return to fill clients’ preholiday orders. This year followed that same script. But this time, the usual seasonal lull played out against a messy backdrop.

The Indian government has tabled a bill granting a 15-year tax holiday for foreign companies selling rough diamonds in special notified zones (SNZs). The exemption would apply to a range of overseas-based rough sellers, including miners, brokers and aggregators, according to the bill, which the government presented to parliament on Tuesday. It would also apply to operators of tenders and auctions, as well as sightholders – the term for De Beers’ contract customers, which often resell their rough.