Natural diamond sales in the US dropped 5.6% year-on-year in April, driven largely by a 9% fall in unit sales, according to a Tenoris report. Diamond analyst Edahn Golan said the decline in diamond sales is particularly troubling, considering total US jewellery sales increased 3.3% year on year.

The report said finished jewellery sales rose 5.7% year over year against flat unit sales. The average retail purchase price of finished jewellery increased, hitting $1,155.

One of the reasons for the increasing average consumer expenditure on jewellery is that they purchased fewer pieces of jewellery priced under $1,000. Over the last year, consumer demand for lower-priced finished jewellery has steadily decreased. At the same time, there is an increasing readiness to spend more on fine jewellery, specifically spending per item.

US retailers showed caution despite the threat of tariffs on key suppliers, including India (26%), the EU (20%), and Thailand (36%). Goods were imported into the US but not sold in larger numbers to retailers. As a result, completed jewellery inventory levels increased by less than 1% year on year and 0.5% from March, Tenoris said.

Sales of finished natural diamond jewellery grew 2.7% in revenue, driven by a 6% rise in average selling prices. However, Unit sales at lower price points continue to decline. Unit sales of goods priced below $1,500 decreased by more than 8%.

Tenoris said the level of finished diamond jewellery inventories fell 1.7% in April. Retailers are not restocking lower-cost items that are in declining demand. The number of those units in inventory declined by more than 7%.

Meanwhile, LGD jewellery unit sales rose 48% and revenue jumped 37% despite a 7.5% decline in average prices. Demand was strong across price points, with sub-$250 pieces more than doubling in sales. Retailers responded by boosting LGD inventories by 35% in April, indicating that retailers expect a continued rise in demand in the near term.

Loose natural diamond sales revenue declined 5.6% in April. The revenue decline was caused by a 9% decrease in unit sales. This time, the 3.6% rise in average retail price was insufficient to keep revenue above the red line.

Tenoris said that after a period in which buyers preferred larger diamonds, the average size of loose diamonds sold has decreased. The most popular item is 1.00-1.04 carat H colour, SI clarity item priced between $2,500 and $5,000. An end-of-month inventory snapshot showed that units in inventory increased by only 1.5% as retailers maintained their buying costs constant, it noted.

In contrast, loose LGD unit sales grew 15%, though a 19% dip in average price dragged revenue lower. LGDs below $500 nearly doubled in unit sales, while the $2,500–$7,500 bracket saw a decline. Retailers stocked up on smaller goods under half a carat, with loose LGD inventory up 16%.

Tenoris concluded that the market appears to be in a holding pattern, waiting to see how the US economy evolves. The report stated: “Economic swings and the threat of high tariffs are influencing customers’ and retailers’ inclination to buy. If we can learn anything from our diamond sales data, it is that we are once again on shaky ground, which does not bode well for the upcoming jewellery trade fairs in Las Vegas.”