Diamonds in Australia: 2025 Market Trends & Investment Insights

Diamonds have long been symbols of luxury, love, and wealth—but in 2025, Australians are increasingly viewing them through the lens of investment. With global market shifts, tightening supply, and the rise of lab-grown stones, the diamond market is undergoing rapid change. Whether you’re interested in physical gems or considering diamond-backed assets, understanding the latest trends and risks is essential for making savvy financial decisions.

The State of the Diamond Market in 2025

The Australian diamond landscape is uniquely positioned. While the closure of the iconic Argyle mine in Western Australia in 2020 marked the end of a pink diamond era, its legacy continues to influence supply and demand. In 2025, natural fancy coloured diamonds—especially pinks—remain highly sought after by collectors and investors alike. Meanwhile, white and lab-grown diamonds compete in both the retail and investment spaces.

• Global supply constraints: The shutdown of several mines worldwide, including Argyle, means fewer natural diamonds are entering the market. This has led to upward pressure on prices for rare stones.

• Lab-grown diamond surge: Advances in technology have made lab-grown diamonds more affordable and virtually indistinguishable from natural gems, appealing to eco-conscious consumers and investors seeking lower entry points.

• Australian retail trends: Jewellers are reporting increased demand for both high-end investment diamonds and budget-friendly lab-grown options. Online platforms are making diamond acquisition more transparent and accessible than ever.

Investing in Diamonds: Opportunities and Pitfalls

Diamonds can be alluring as an alternative asset, but they are fundamentally different from traditional investments like shares or property. Their value is determined by the 4Cs—carat, cut, colour, and clarity—as well as provenance and market sentiment. Recent 2025 data shows:

• Coloured diamonds (especially Argyle pinks) have appreciated by as much as 10-15% annually since 2021, according to leading Australian auction houses.

• White diamonds and lab-grown stones are facing more modest price growth, as supply and consumer preference shift.

• Liquidity challenges: Unlike shares, diamonds aren’t traded on public exchanges. Selling may take time and require specialist intermediaries.

For investors, due diligence is critical. Here are key steps:

• Buy from reputable, certified dealers who provide grading reports from respected labs (such as GIA or IGI).

• Focus on rare, investment-grade stones—these tend to hold value better over time.

• Understand the costs of storage, insurance, and resale before committing.

Policy, Regulation, and Tax Considerations in 2025

The Australian government continues to tighten regulations around gemstone imports and trading, aiming to curb money laundering and ensure ethical sourcing. In 2025, new rules require stricter due diligence and provenance tracking for diamond dealers. As an investor, be sure to:

• Request documentation confirming the ethical sourcing of any diamond you buy.

• Declare capital gains on diamond sales in your tax return—diamonds are considered personal use assets, but if held for investment, gains may be taxable.

• Stay updated on import duties and GST, especially if purchasing from overseas platforms.

Lab-grown diamonds are also subject to evolving regulations, with the ACCC requiring clear labelling and disclosure to protect consumers.

Real-World Example: Pink Diamonds Post-Argyle

Since the Argyle mine’s closure, Australian pink diamonds have become the darlings of both collectors and investors. For example, a 0.5 carat fancy vivid pink diamond, which sold for around $70,000 in 2020, now commands upwards of $120,000 at Sydney auctions. Investors who acquired stones before the mine’s closure have seen outsized returns, underscoring the importance of timing and rarity in the diamond market.

Should Diamonds Have a Place in Your Portfolio?

Diamonds are not for every investor. They suit those seeking tangible assets, diversification, or a hedge against inflation. However, their illiquidity and market opacity require caution. For Australians considering a diamond purchase in 2025, focus on rarity, certification, and long-term trends rather than quick profits.