Editor’s Note
This article discusses recent price movements in precious metals and diamonds, noting a shift in market dynamics. While gold and silver have seen recent volatility after a period of strength, diamond prices appear to be stabilizing. The analysis is based on market reports and expert commentary.
Gold and silver prices have been on an upward trend since 2025. Although significant volatility has been recorded in the past week, many market experts have stated that prices are expected to show strength in the coming period. While gold and silver prices were rising, a decline was recorded in diamond prices. However, this decline has now moderated as gold and silver prices are falling. The Rapaport Group released a report on polished diamond prices, indicating that the decline in diamond prices was less pronounced in January. Over the past few months, the decline had been sharper, especially in the prices of smaller diamonds.
Globally, 2025 faced several uncertainties. The reasons behind this included tariffs imposed by the US government and geopolitical tensions. However, a trade deal between the US and India occurred in February, and geopolitical tensions between several countries appear to be easing, which is having an impact on the commodity markets. The decline in gold and silver prices and the decline in diamond prices have moderated somewhat. Compared to previous years, prices in India showed greater strength. Diamonds of 1.20 carats performed better compared to smaller diamonds.
In January, the RapNet Diamond Index (RAPI) for diamonds in the 0.30 – 1 carat range fell by 1.3%. However, the decline was steeper before that. Significant declines were also seen in the RAPI for 0.50 carat and 3 carat diamonds.
By the end of January, gold and silver prices had reached their all-time high records, after which a significant decline was recorded. Since then, a situation of volatility has been observed in the market. On Friday, gold prices on MCX closed at ₹155,055 per ten grams and silver at ₹249,499 per kilogram. In the jewelry market, the prices of gold, silver, and diamonds are interconnected. When gold and silver become cheaper, people’s purchasing power increases. However, the direct impact is not immediately visible.
