Published 2:05 pm Wednesday, November 26, 2025 By William Koblensky Varela, Local Journalism Initiative Northern News Services The high price of diamonds is not forever, and while some of the pain for the Northwest Territories’ three diamond mines might soon abate, it appears that there’s no further government supports for the industry on the way. Two diamond analysts told NNSL Media that the gem is expected to stop falling in price soon. Since 2022, diamond prices have fallen 30 to 40 per cent from all time highs, according to Paul Zimnisky’s Rough Diamond Price Index. That has left NWT diamond mines reporting financial losses. “Diamond prices seem to be bottoming out in 2025. Externalities like the U.S. tariff program continue to disrupt the market” Zimnisky said. The U.S. is the biggest importer of diamonds, according to the Observatory of Economic Complexity. India is the biggest exporter the gem by value, and the U.S. currently has a 50 per cent tariff on exports from that country. U.S. tariffs could cause the price of diamonds to climb modestly in the near-term, analyst John Vardis said. “So many wholesale dealers are working off their domestic inventory, but come holiday time, an increase in sales is expected,” Vardis said. However, he’s not expecting a significant rebound. While lab-grown diamonds are part of what’s exerting downward pressure on diamond values, many other global economic factors are also to blame. A decline in luxury demand coupled with the mining giant De Beers going up for sale has helped put a damper on diamonds, according to both analysts. In April, the GNWT reduced the mineral property tax rate by $11.2 million, returned Large Emitter Fund balances to the mines, and vowed to double the amount of diamond valuations in the territory this fiscal year. The territorial government told NNSL Media that there are no further relief strategies planned. “While there are no current plans to inject additional funding into diamond mines, we are working closely with Indigenous governments to provide support to impacted workers and continue planning for the future,” stated Caitlin Cleveland, minister of Industry, Tourism and Investment. As of 2022, diamond mines contributed $1.2 billion to the NWT’s gross domestic product. The three diamond mines in NWT are: -Ekati Diamond Mine, 300 kilometers northeast of Yellowknife, just north of Lac de Gras and owned by Burgundy Diamond Mines -Diavik Diamond Mine, at the bottom of Lac de Gras, owned by Rio Tinto owns, which is slated to close next year -Gahcho Kue, north of Lac de Gras, is a joint venture between De Beers Group and Mountain Province Diamonds For more stories from NWT & Nunavut Mining, click here.
Diamond prices expected to climb, analyst says
