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Tariffs Prompt Another Surge for IDEX Diamond Index

August 07, 25 by John Jeffay

(IDEX Online) - Real-time asking prices for polished diamonds surged for a second time in the days ahead of US tariffs being introduced, according to the IDEX Online Diamond Index.

It was up 5 per cent in two days, amid increasing anxiety over the implementation today (7 August) of  US reciprocal tariffs. 

This indicates significant volatility, given that the Index rarely moves by more than 2 or 3 per cent over a month.

At the end of June it increased by almost 6.9 per cent over a three-day period, ahead of the 9 July deadline for countries to negotiate a trade deal with the US, or have drastic new tariffs imposed.

That surge corrected itself rapidly, with prices on 2 July back to pre-surge 26 June levels.

At the time of writing the Index is, however, still rising, fueled by a separate tariff development - the bombshell news yesterday (6 August) that 25 percent tariffs on Indian imports have been doubled to 50 per cent.

The Index has shown steep surges in the recent past, most notably in late 2021 to early 2022 (the beginning of the end for Covid) but they were part of a strong upwards trend rather than a short-term spike.

The IDEX Online Diamond Index monitors and aggregates listings from a vast network of suppliers to objectively reflect current market sentiment and asking prices.

Pic shows Index for the last year.

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